SB 77 - An Act to Amend Sections 33500, 33501, 33607.5, and 33607.7 Of, to Add Part 1.8 (Commencing with Section 34161) and Part 1.85 (Commencing with Section 34170) to Division 24 Of, and to Repeal Section 33604 Of, the Health and Safety Code, and to Add Sections 97.401 and 98.2 To, and to Add Chapter 7 (Commencing with Section 100.96) to Part 0.5 of Division 1 Of, the Revenue and Taxation Code, Relating to Redevelopment, and Making an Appropriation Therefor, to Take Effect Immediately, Bill Related to the Budget.

An Act to Amend Sections 33500, 33501, 33607.5, and 33607.7 Of, to Add Part 1.8 (Commencing with Section 34161) and Part 1.85 (Commencing with Section 34170) to Division 24 Of, and to Repeal Section 33604 Of, the Health and Safety Code, and to Add Sections 97.401 and 98.2 To, and to Add Chapter 7 (Commencing with Section 100.96) to Part 0.5 of Division 1 Of, the Revenue and Taxation Code, Relating to Redevelopment, and Making an Appropriation Therefor, to Take Effect Immediately, Bill Related to the Budget.

SB 77 — 2011-2012 Legislature

Summary

(1)The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law provides that an action may be brought to review the validity of the adoption or amendment of a redevelopment plan by an agency, to review the validity of agency findings or determinations, and other agency actions.

This bill would revise the provisions of law authorizing an action to be brought against the agency to determine or review the validity of specified agency actions.

(2)Existing law also requires that if an agency ceases to function, any surplus funds existing after payment of all obligations and indebtedness vest in the community.

The bill would repeal this provision. The bill would suspend various agency activities and prohibit agencies from incurring indebtedness commencing on the effective date of this act. Effective July 1, 2011, the bill would dissolve all redevelopment agencies and community development agencies in existence and designate successor agencies, as defined, as successor entities. The bill would impose various requirements on the successor agencies and… More

(1)The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law provides that an action may be brought to review the validity of the adoption or amendment of a redevelopment plan by an agency, to review the validity of agency findings or determinations, and other agency actions.

This bill would revise the provisions of law authorizing an action to be brought against the agency to determine or review the validity of specified agency actions.

(2)Existing law also requires that if an agency ceases to function, any surplus funds existing after payment of all obligations and indebtedness vest in the community.

The bill would repeal this provision. The bill would suspend various agency activities and prohibit agencies from incurring indebtedness commencing on the effective date of this act. Effective July 1, 2011, the bill would dissolve all redevelopment agencies and community development agencies in existence and designate successor agencies, as defined, as successor entities. The bill would impose various requirements on the successor agencies and subject successor agency actions to the review of oversight boards, which the bill would establish.

The bill would require county auditor-controllers to conduct an agreed-upon procedures audit of each former redevelopment agency by October 1, 2011. The bill would require the county auditor-controller to determine the amount of property taxes that would have been allocated to each redevelopment agency if the agencies had not been dissolved and deposit this amount in a Redevelopment Property Tax Trust Fund in the county. Revenues in the trust fund would be allocated to various taxing entities in the county and to cover specified expenses of the former agency. The sum of $1,700,000,000 of these moneys would be allocated to the various counties for deposit in a Public Health and Safety Fund, which would be used to reimburse the state for health and trial court services in the county. The bill would authorize the county to elect not to administer this fund, in which case the Director of Finance would be required to designate a different entity to administer this fund. Under the bill, if the county elects not to administer the fund, it would not receive moneys remaining in the Redevelopment Property Tax Trust Fund, which would otherwise be distributed to taxing entities in the county. The bill would also require, for the 2012–13 fiscal year and each subsequent fiscal year in which funds are available, each county auditor-controller to allocate to various educational entities a specified amount. By imposing additional duties upon local public officials, the bill would create a state-mandated local program.

(3)Under the California Constitution, the Legislature is prohibited, except by a 23 vote, from changing the pro rata shares in which ad valorem property tax revenues are allocated among local agencies in a county.

Because this measure would provide property tax revenues that would otherwise be received by enterprise special districts from former redevelopment tax increment allotments instead be received by the respective county, and may result in property tax moneys in the Redevelopment Property Tax Trust Fund not being allocated to the county if it declines to administer the Public Health and Safety Fund, the bill would constitute a change in the pro rata share of property tax allocations in that county and require the passage of the bill by a 23 vote.

(4)The bill would appropriate $500,000 to the Department of Finance from the General Fund for administrative costs associated with the bill.

(5)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 no reimbursement is required by this act for a specified reason.

(6)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill. Hide

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At LegInfo.ca.gov

Title

An Act to Amend Sections 33500, 33501, 33607.5, and 33607.7 Of, to Add Part 1.8 (Commencing with Section 34161) and Part 1.85 (Commencing with Section 34170) to Division 24 Of, and to Repeal Section 33604 Of, the Health and Safety Code, and to Add Sections 97.401 and 98.2 To, and to Add Chapter 7 (Commencing with Section 100.96) to Part 0.5 of Division 1 Of, the Revenue and Taxation Code, Relating to Redevelopment, and Making an Appropriation Therefor, to Take Effect Immediately, Bill Related to the Budget.

Author(s)

Senate Committee on Budget and Fiscal Review

Co-Authors

Subjects

• Community redevelopment

Major Actions

Introduced	1/10/2011
Referred to Committee
Passed Senate	2/14/2011
Failed passage in Assembly	3/16/2011

Bill History

• All Votes
• All Actions

	Chamber/Committee	Motion	Date	Result
select this vote	Senate	Senate 3rd Reading SB77 Committee on B. & F.R. (Leno)	2/14/2011	This bill PASSED the Senate 22 voted YES 2 voted NO 14 voted present/not voting
currently selected	Assembly	SB 77 B. & F. R. Senate Third Reading By BLUMENFIELD	3/16/2011	This bill DID NOT PASS the Assembly 53 voted YES 23 voted NO 3 voted present/not voting

	Action	Date	Description
	Introduced	1/10/2011
		1/10/2011	Introduced. Read first time. To Com. on RLS. for assignment. To print.
		1/11/2011	From printer. May be acted upon on or after February 10.
		1/20/2011	Referred to Com. on RLS.
		2/10/2011	Withdrawn from committee. Ordered to second reading. Read second time. Ordered to third reading.
		2/14/2011	Read third time. Passed. (Ayes 22. Noes 2. Page 166.) Ordered to the Assembly.
		2/14/2011	In Assembly. Read first time. Held at Desk.
select this vote	Senate Vote on Passage	2/14/2011	Senate 3rd Reading SB77 Committee on B. & F.R. (Leno)
		3/07/2011	Referred to Com. on BUDGET.
		3/15/2011	From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.
		3/16/2011	Withdrawn from committee. Ordered to third reading. Read third time. Refused passage. (Ayes 53. Noes 23. Page 591.) Motion to reconsider made by Assembly Member Blumenfield.
currently selected	Assembly Vote on Passage	3/16/2011	SB 77 B. & F. R. Senate Third Reading By BLUMENFIELD
		3/17/2011	Motion to reconsider continued to July 5.
		7/05/2011	Reconsideration granted. (Page 2185.) Ordered to inactive file on request of Assembly Member Allen.