AB 204: Redevelopment: County of Los Angeles.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-06-16
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 authorizes, in each county where more than one oversight board was created, only one oversight board to be appointed on and after July 1, 2016.
This bill would require an oversight board within the County of Los Angeles to continue to independently operate past the July 1, 2016, consolidation date, until its successor agency adopts a resolution dissolving the board and the board approves that resolution, as provided.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
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 authorizes, in each county where more than one oversight board was created, only one oversight board to be appointed on and after July 1, 2016.
This bill would require an oversight board within the County of Los Angeles to continue to independently operate past the July 1, 2016, consolidation date, until its successor agency adopts a resolution dissolving the board, board and the board approves that resolution, as provided.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
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 authorizes, in each county where more than one oversight board was created, only one oversight board to be appointed on and after July 1, 2016.
This bill would require an oversight board within the County of Los Angeles to continue to independently operate past the July 1, 2016, consolidation date, until its successor agency adopts a resolution dissolving the board, as provided.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Los Angeles.
(a)The Legislature finds and declares that the oversight boards to individual successor agencies were established pursuant to the Redevelopment Agency Dissolution Act, which prescribes that all oversight boards in the County of Los Angeles will be consolidated into a single countywide oversight board by July 1, 2016.
(b)The Legislature further finds that collapsing all functions of the 71 oversight boards in the County of Los Angeles into a single countywide oversight board would create administrative gridlock and be a severe impediment to the expeditious disposition of properties owned by former redevelopment agencies.
(c)In recognition of these findings and to ensure that the duties of the 71 oversight boards and successor agencies in the County of Los Angeles will be met in a timely manner, it is the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfer of fiduciary duties to the countywide oversight board.
SEC. 2.Section 34179 of the Health and Safety Code is amended to read:34179.(a)Each successor agency shall have an oversight board composed of seven members. The members shall elect one of their members as the chairperson and shall report the name of the chairperson and other members to the Department of Finance on or before May 1, 2012. Members shall be selected as follows:
(1)One member appointed by the county board of supervisors.
(2)One member appointed by the mayor for the city that formed the redevelopment agency.
(3)(A)One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, that is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188.
(B) On or after the effective date of this subparagraph, the county auditor-controller may determine which is the largest special district for purposes of this section.
(4)One member appointed by the county superintendent of education to represent schools, if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public appointed by the county board of supervisors.
(7)One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at that time. If city or county employees performed administrative duties of the former redevelopment agency, the appointment shall be made from the recognized employee organization representing those employees. If a recognized employee organization does not exist for either the employees of the former redevelopment agency or the city or county employees performing administrative duties of the former redevelopment agency, the appointment shall be made from among the employees of the successor agency. In voting to approve a contract as an enforceable obligation, a member appointed pursuant to this paragraph shall not be deemed to be interested in the contract by virtue of being an employee of the successor agency or community for purposes of Section 1090 of the Government Code.
(8)If the county or a joint powers agency formed the redevelopment agency, the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member. If there are no cities with territory in a project area of the redevelopment agency, the county superintendent of education may appoint an additional member to represent the public.
(9)If there are no special districts of the type that are eligible to receive property tax pursuant to Section 34188 within the territorial jurisdiction of the former redevelopment agency, the county may appoint one member to represent the public.
(10)If a redevelopment agency was formed by an entity that is both a charter city and a county, the oversight board shall be composed of seven members selected as follows: three members appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors; one member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, that is the type of special district that is eligible to receive property tax revenues pursuant to Section 34188; one member appointed by the county superintendent of education to represent schools; one member appointed by the Chancellor of the California Community Colleges to represent community college districts; and one member representing employees of the former redevelopment agency appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors, to represent the largest number of former redevelopment agency employees employed by the successor agency at that time.
(b)The Governor may appoint individuals to fill any oversight board member position described in subdivision (a) that has not been filled by May 15, 2012, or any member position that remains vacant for more than 60 days.
(c)The oversight board may direct the staff of the successor agency to perform work in furtherance of the oversight boards duties and responsibilities under this part. The successor agency shall pay for all of the costs of meetings of the oversight board and may include those costs in its administrative budget. Oversight board members shall serve without compensation or reimbursement for expenses.
(d)Oversight board members are protected by the immunities applicable to public entities and public employees governed by Part 1 (commencing with Section 810) and Part 2 (commencing with Section 814) of Division 3.6 of Title 1 of the Government Code.
(e)A majority of the total membership of the oversight board shall constitute a quorum for the transaction of business. A majority vote of the total membership of the oversight board is required for the oversight board to take action. The oversight board shall be deemed to be a local entity for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. All actions taken by the oversight board shall be adopted by resolution.
(f)All notices required by law for proposed oversight board actions shall also be posted on the successor agencys Internet Web site or the oversight boards Internet Web site.
(g)Each member of an oversight board shall serve at the pleasure of the entity that appointed that member.
(h)The Department of Finance may review an oversight board action taken pursuant to this part. Written notice and information about all actions taken by an oversight board shall be provided to the department by electronic means and in a manner of the departments choosing. An action shall become effective five business days after notice in the manner specified by the department is provided unless the department requests a review. Each oversight board shall designate an official to whom the department may make those requests and who shall provide the department with the telephone number and email contact information for the purpose of communicating with the department pursuant to this subdivision. Except as otherwise provided in this part, if the department requests a review of a given oversight board action, it shall have 40 days from the date of its request to approve the oversight board action or return it to the oversight board for reconsideration and the oversight board action shall not be effective until approved by the department. If the department returns the oversight board action to the oversight board for reconsideration, the oversight board shall resubmit the modified action for department approval and the modified oversight board action shall not become effective until approved by the department. If the department reviews a Recognized Obligation Payment Schedule, the department may eliminate or modify any item on that schedule prior to its approval. The county auditor-controller shall reflect the actions of the department in determining the amount of property tax revenues to allocate to the successor agency. The department shall provide notice to the successor agency and the county auditor-controller as to the reasons for its actions. To the extent that an oversight board continues to dispute a determination with the department, one or more future recognized obligation schedules may reflect any resolution of that dispute. The department may also agree to an amendment to a Recognized Obligation Payment Schedule to reflect a resolution of a disputed item, however, this shall not affect a past allocation of property tax or create a liability for any affected taxing entity.
(i)Oversight boards shall have fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188. Further, the provisions of Division 4 (commencing with Section 1000) of Title 1 of the Government Code shall apply to oversight boards. Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district.
(j)Commencing Except as specified in subdivision (q), commencing on and after July 1, 2016, in each county where more than one oversight board was created by operation of the act adding this part, there shall be only one oversight board appointed as follows:
(1)One member may be appointed by the county board of supervisors.
(2)One member may be appointed by the city selection committee established pursuant to Section 50270 of the Government Code. In a city and county, the mayor may appoint one member.
(3)One member may be appointed by the independent special district selection committee established pursuant to Section 56332 of the Government Code, for the types of special districts that are eligible to receive property tax revenues pursuant to Section 34188.
(4)One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public may be appointed by the county board of supervisors.
(7)One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
(k)The Governor may appoint individuals to fill any oversight board member position described in subdivision (j) that has not been filled by July 15, 2016, or any member position that remains vacant for more than 60 days.
(l)Commencing on and after July 1, 2016, in each county where only one oversight board was created by operation of the act adding this part, then there will be no change to the composition of that oversight board as a result of the operation of subdivision (b).
(m)Any oversight board for a given successor agency shall cease to exist when all of the indebtedness of the dissolved redevelopment agency has been repaid or a successor agency has dissolved the oversight board pursuant to subdivision (q).
(n)An oversight board may direct a successor agency to provide legal or financial advice in addition to that provided by agency staff.
(o)An oversight board is authorized to contract with the county or other public or private agencies for administrative support.
(p)On matters within the purview of the oversight board, decisions made by the oversight board supersede those made by the successor agency or the staff of the successor agency.
(q)Notwithstanding subdivision (j), an oversight board within the County of Los Angeles shall continue to independently operate until its successor agency adopts a resolution dissolving its oversight board and its oversight board approves that resolution, after which time the successor agency shall be overseen by the oversight board established pursuant to subdivision (j).
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the County of Los Angeles.
(a)The Legislature finds and declares that the oversight boards to individual successor agencies were established pursuant to the Redevelopment Agency Dissolution Act, which prescribes that all oversight boards in the County of Los Angeles will be consolidated into a single countywide oversight board by July 1, 2016.
(b)The Legislature further finds that collapsing all functions of the 71 oversight boards in the County of Los Angeles into a single countywide oversight board would create administrative gridlock and be a severe impediment to the expeditious disposition of properties owned by former redevelopment agencies.
(c)In recognition of these findings and to ensure that the duties of the 71 oversight boards and successor agencies in the County of Los Angeles will be met in a timely manner, it is the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfer of fiduciary duties to the countywide oversight board.
SEC. 2.Section 34179 of the Health and Safety Code is amended to read:34179.(a)Each successor agency shall have an oversight board composed of seven members. The members shall elect one of their members as the chairperson and shall report the name of the chairperson and other members to the Department of Finance on or before May 1, 2012. Members shall be selected as follows:
(1)One member appointed by the county board of supervisors.
(2)One member appointed by the mayor for the city that formed the redevelopment agency.
(3)(A)One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, that is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188.
(B) On or after the effective date of this subparagraph, the county auditor-controller may determine which is the largest special district for purposes of this section.
(4)One member appointed by the county superintendent of education to represent schools, if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public appointed by the county board of supervisors.
(7)One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at that time. If city or county employees performed administrative duties of the former redevelopment agency, the appointment shall be made from the recognized employee organization representing those employees. If a recognized employee organization does not exist for either the employees of the former redevelopment agency or the city or county employees performing administrative duties of the former redevelopment agency, the appointment shall be made from among the employees of the successor agency. In voting to approve a contract as an enforceable obligation, a member appointed pursuant to this paragraph shall not be deemed to be interested in the contract by virtue of being an employee of the successor agency or community for purposes of Section 1090 of the Government Code.
(8)If the county or a joint powers agency formed the redevelopment agency, the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member. If there are no cities with territory in a project area of the redevelopment agency, the county superintendent of education may appoint an additional member to represent the public.
(9)If there are no special districts of the type that are eligible to receive property tax pursuant to Section 34188 within the territorial jurisdiction of the former redevelopment agency, the county may appoint one member to represent the public.
(10)If a redevelopment agency was formed by an entity that is both a charter city and a county, the oversight board shall be composed of seven members selected as follows: three members appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors; one member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, that is the type of special district that is eligible to receive property tax revenues pursuant to Section 34188; one member appointed by the county superintendent of education to represent schools; one member appointed by the Chancellor of the California Community Colleges to represent community college districts; and one member representing employees of the former redevelopment agency appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors, to represent the largest number of former redevelopment agency employees employed by the successor agency at that time.
(b)The Governor may appoint individuals to fill any oversight board member position described in subdivision (a) that has not been filled by May 15, 2012, or any member position that remains vacant for more than 60 days.
(c)The oversight board may direct the staff of the successor agency to perform work in furtherance of the oversight boards duties and responsibilities under this part. The successor agency shall pay for all of the costs of meetings of the oversight board and may include those costs in its administrative budget. Oversight board members shall serve without compensation or reimbursement for expenses.
(d)Oversight board members are protected by the immunities applicable to public entities and public employees governed by Part 1 (commencing with Section 810) and Part 2 (commencing with Section 814) of Division 3.6 of Title 1 of the Government Code.
(e)A majority of the total membership of the oversight board shall constitute a quorum for the transaction of business. A majority vote of the total membership of the oversight board is required for the oversight board to take action. The oversight board shall be deemed to be a local entity for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. All actions taken by the oversight board shall be adopted by resolution.
(f)All notices required by law for proposed oversight board actions shall also be posted on the successor agencys Internet Web site or the oversight boards Internet Web site.
(g)Each member of an oversight board shall serve at the pleasure of the entity that appointed that member.
(h)The Department of Finance may review an oversight board action taken pursuant to this part. Written notice and information about all actions taken by an oversight board shall be provided to the department by electronic means and in a manner of the departments choosing. An action shall become effective five business days after notice in the manner specified by the department is provided unless the department requests a review. Each oversight board shall designate an official to whom the department may make those requests and who shall provide the department with the telephone number and email contact information for the purpose of communicating with the department pursuant to this subdivision. Except as otherwise provided in this part, if the department requests a review of a given oversight board action, it shall have 40 days from the date of its request to approve the oversight board action or return it to the oversight board for reconsideration and the oversight board action shall not be effective until approved by the department. If the department returns the oversight board action to the oversight board for reconsideration, the oversight board shall resubmit the modified action for department approval and the modified oversight board action shall not become effective until approved by the department. If the department reviews a Recognized Obligation Payment Schedule, the department may eliminate or modify any item on that schedule prior to its approval. The county auditor-controller shall reflect the actions of the department in determining the amount of property tax revenues to allocate to the successor agency. The department shall provide notice to the successor agency and the county auditor-controller as to the reasons for its actions. To the extent that an oversight board continues to dispute a determination with the department, one or more future recognized obligation schedules may reflect any resolution of that dispute. The department may also agree to an amendment to a Recognized Obligation Payment Schedule to reflect a resolution of a disputed item, however, this shall not affect a past allocation of property tax or create a liability for any affected taxing entity.
(i)Oversight boards shall have fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188. Further, the provisions of Division 4 (commencing with Section 1000) of the Government Code shall apply to oversight boards. Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district.
(j)Commencing on and after July 1, 2016, in each county where more than one oversight board was created by operation of the act adding this part, there shall be one oversight board appointed as follows:
(1)One member may be appointed by the county board of supervisors.
(2)One member may be appointed by the city selection committee established pursuant to Section 50270 of the Government Code. In a city and county, the mayor may appoint one member.
(3)One member may be appointed by the independent special district selection committee established pursuant to Section 56332 of the Government Code, for the types of special districts that are eligible to receive property tax revenues pursuant to Section 34188.
(4)One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public may be appointed by the county board of supervisors.
(7)One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
(k)The Governor may appoint individuals to fill any oversight board member position described in subdivision (j) that has not been filled by July 15, 2016, or any member position that remains vacant for more than 60 days.
(l)Commencing on and after July 1, 2016, in each county where only one oversight board was created by operation of the act adding this part, then there will be no change to the composition of that oversight board as a result of the operation of subdivision (b).
(m)Any oversight board for a given successor agency shall cease to exist when all of the indebtedness of the dissolved redevelopment agency has been repaid or a successor agency has dissolved the oversight board pursuant to subdivision (q).
(n)An oversight board may direct a successor agency to provide legal or financial advice in addition to that provided by agency staff.
(o)An oversight board is authorized to contract with the county or other public or private agencies for administrative support.
(p)On matters within the purview of the oversight board, decisions made by the oversight board supersede those made by the successor agency or the staff of the successor agency.
(q)Notwithstanding subdivision (j), an oversight board within the County of Los Angeles shall continue to independently operate until its successor agency adopts a resolution dissolving its oversight board, board and its oversight board approves that resolution, after which time the successor agency shall be overseen by the oversight board established pursuant to subdivision (j).
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the County of Los Angeles.
(a)The Legislature finds and declares that the oversight boards to individual successor agencies were established pursuant to the Redevelopment Agency Dissolution Act, which prescribes that all oversight boards in the County of Los Angeles will be consolidated into a single countywide oversight board by July 1, 2016.
(b)The Legislature further finds that collapsing all functions of the 71 oversight boards in the County of Los Angeles into a single countywide oversight board would create administrative gridlock and be a severe impediment to the expeditious disposition of properties owned by former redevelopment agencies.
(c)In recognition of these findings and to ensure that the duties of the 71 oversight boards and successor agencies in the County of Los Angeles will be met in a timely manner, it is the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfer of fiduciary duties to the countywide oversight board.
SEC. 2.Section 34179 of the Health and Safety Code is amended to read:34179.(a)Each successor agency shall have an oversight board composed of seven members. The members shall elect one of their members as the chairperson and shall report the name of the chairperson and other members to the Department of Finance on or before May 1, 2012. Members shall be selected as follows:
(1)One member appointed by the county board of supervisors.
(2)One member appointed by the mayor for the city that formed the redevelopment agency.
(3)(A)One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which that is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188.
(B) On or after the effective date of this subparagraph, the county auditor-controller may determine which is the largest special district for purposes of this section.
(4)One member appointed by the county superintendent of education to represent schools, if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public appointed by the county board of supervisors.
(7)One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, as the case may be, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at that time. In the case where If city or county employees performed administrative duties of the former redevelopment agency, the appointment shall be made from the recognized employee organization representing those employees. If a recognized employee organization does not exist for either the employees of the former redevelopment agency or the city or county employees performing administrative duties of the former redevelopment agency, the appointment shall be made from among the employees of the successor agency. In voting to approve a contract as an enforceable obligation, a member appointed pursuant to this paragraph shall not be deemed to be interested in the contract by virtue of being an employee of the successor agency or community for purposes of Section 1090 of the Government Code.
(8)If the county or a joint powers agency formed the redevelopment agency, then the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member. If there are no cities with territory in a project area of the redevelopment agency, the county superintendent of education may appoint an additional member to represent the public.
(9)If there are no special districts of the type that are eligible to receive property tax pursuant to Section 34188, within the territorial jurisdiction of the former redevelopment agency, then the county may appoint one member to represent the public.
(10)If a redevelopment agency was formed by an entity that is both a charter city and a county, the oversight board shall be composed of seven members selected as follows: three members appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors, supervisors; one member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which that is the type of special district that is eligible to receive property tax revenues pursuant to Section 34188, 34188; one member appointed by the county superintendent of education to represent schools, schools; one member appointed by the Chancellor of the California Community Colleges to represent community college districts, districts; and one member representing employees of the former redevelopment agency appointed by the mayor of the city, if that appointment is subject to confirmation by the county board of supervisors, to represent the largest number of former redevelopment agency employees employed by the successor agency at that time.
(b)The Governor may appoint individuals to fill any oversight board member position described in subdivision (a) that has not been filled by May 15, 2012, or any member position that remains vacant for more than 60 days.
(c)The oversight board may direct the staff of the successor agency to perform work in furtherance of the oversight boards duties and responsibilities under this part. The successor agency shall pay for all of the costs of meetings of the oversight board and may include such those costs in its administrative budget. Oversight board members shall serve without compensation or reimbursement for expenses.
(d)Oversight board members are protected by the immunities applicable to public entities and public employees governed by Part 1 (commencing with Section 810) and Part 2 (commencing with Section 814) of Division 3.6 of Title 1 of the Government Code.
(e)A majority of the total membership of the oversight board shall constitute a quorum for the transaction of business. A majority vote of the total membership of the oversight board is required for the oversight board to take action. The oversight board shall be deemed to be a local entity for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. All actions taken by the oversight board shall be adopted by resolution.
(f)All notices required by law for proposed oversight board actions shall also be posted on the successor agencys Internet Web site or the oversight boards Internet Web site.
(g)Each member of an oversight board shall serve at the pleasure of the entity that appointed such that member.
(h)The Department of Finance may review an oversight board action taken pursuant to this part. Written notice and information about all actions taken by an oversight board shall be provided to the department by electronic means and in a manner of the departments choosing. An action shall become effective five business days after notice in the manner specified by the department is provided unless the department requests a review. Each oversight board shall designate an official to whom the department may make those requests and who shall provide the department with the telephone number and e-mail contact information for the purpose of communicating with the department pursuant to this subdivision. Except as otherwise provided in this part, in the event that if the department requests a review of a given oversight board action, it shall have 40 days from the date of its request to approve the oversight board action or return it to the oversight board for reconsideration and the oversight board action shall not be effective until approved by the department. In the event that If the department returns the oversight board action to the oversight board for reconsideration, the oversight board shall resubmit the modified action for department approval and the modified oversight board action shall not become effective until approved by the department. If the department reviews a Recognized Obligation Payment Schedule, the department may eliminate or modify any item on that schedule prior to its approval. The county auditor-controller shall reflect the actions of the department in determining the amount of property tax revenues to allocate to the successor agency. The department shall provide notice to the successor agency and the county auditor-controller as to the reasons for its actions. To the extent that an oversight board continues to dispute a determination with the department, one or more future recognized obligation schedules may reflect any resolution of that dispute. The department may also agree to an amendment to a Recognized Obligation Payment Schedule to reflect a resolution of a disputed item; item, however, this shall not affect a past allocation of property tax or create a liability for any affected taxing entity.
(i)Oversight boards shall have fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188. Further, the provisions of Division 4 (commencing with Section 1000) of the Government Code shall apply to oversight boards. Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district.
(j)Commencing on and after July 1, 2016, in each county where more than one oversight board was created by operation of the act adding this part, there shall be only one oversight board appointed as follows:
(1)One member may be appointed by the county board of supervisors.
(2)One member may be appointed by the city selection committee established pursuant to Section 50270 of the Government Code. In a city and county, the mayor may appoint one member.
(3)One member may be appointed by the independent special district selection committee established pursuant to Section 56332 of the Government Code, for the types of special districts that are eligible to receive property tax revenues pursuant to Section 34188.
(4)One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education.
(5)One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
(6)One member of the public may be appointed by the county board of supervisors.
(7)One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
(k)The Governor may appoint individuals to fill any oversight board member position described in subdivision (j) that has not been filled by July 15, 2016, or any member position that remains vacant for more than 60 days.
(l)Commencing on and after July 1, 2016, in each county where only one oversight board was created by operation of the act adding this part, then there will be no change to the composition of that oversight board as a result of the operation of subdivision (b).
(m)Any oversight board for a given successor agency shall cease to exist when all of the indebtedness of the dissolved redevelopment agency has been repaid or a successor agency has dissolved the oversight board pursuant to subdivision (q).
(n)An oversight board may direct a successor agency to provide additional legal or financial advice than what was given in addition to that provided by agency staff.
(o)An oversight board is authorized to contract with the county or other public or private agencies for administrative support.
(p)On matters within the purview of the oversight board, decisions made by the oversight board supersede those made by the successor agency or the staff of the successor agency.
(q)Notwithstanding subdivision (j), an oversight board within the County of Los Angeles shall continue to independently operate until its successor agency adopts a resolution dissolving its oversight board, after which time the successor agency shall be overseen by the oversight board established pursuant to subdivision (j).
SEC. 3.The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the County of Los Angeles.
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Date
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Status
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|---|---|
| Jan 29, 2015 | Read first time. To print. |
| Jan 30, 2015 | From printer. May be heard in committee March 1. |
| Feb 9, 2015 | Referred to Coms. on L. GOV. and H. & C.D. |
| Apr 9, 2015 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 9, 2015 | From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 9. Noes 0.) (April 8). Re-referred to Com. on H. & C.D. |
| Apr 13, 2015 | Re-referred to Com. on H. & C.D. |
| Apr 29, 2015 | From committee: Do pass. (Ayes 6. Noes 0.) (April 29). |
| Apr 30, 2015 | Read second time. Ordered to third reading. |
| May 4, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 4, 2015 | Read third time. Passed. Ordered to the Senate. |
| May 4, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1262.) |
| May 14, 2015 | Referred to Com. on GOV. & F. |
| Jun 15, 2015 | From committee: Amend, and do pass as amended. (Ayes 6. Noes 0.) (June 10). |
| Jun 16, 2015 | Read second time and amended. Ordered to third reading. |
| Jun 25, 2015 | Ordered to inactive file at the request of Senator Hall. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jun 10, 2015 | Do pass as amended | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 4, 2015 | AB 204 O'DONNELL Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 29, 2015 | Do pass. | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Apr 8, 2015 | Do pass and be re-referred to the Committee on [Housing and Community Development] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| AFSCME, AFL-CIO | ** Support | Apr 29, 2015 |
| AFSCME, District Council 36 | ** Support | Apr 29, 2015 |
| American Federation Of State, County And Municipal Employees, Afl-Cio | ** Support | Apr 29, 2015 |
| Cerritos, City Of | ** Support | Apr 29, 2015 |
| City of Bell Gardens | ** Support | Apr 29, 2015 |
| City of Downey | ** Support | Apr 29, 2015 |
| City of Long Beach | * Indeterminate | Apr 29, 2015 |
| City of Long Beach | * Support | Apr 29, 2015 |
| City of Long Beach [SPONSOR] | ** Support | Apr 29, 2015 |
| City of Los Angeles Mayor Eric Garcetti | * Support | Jun 10, 2015 |
| City of Montebello | ** Support | Apr 29, 2015 |
| City Of Signal Hill | ** Support | Apr 29, 2015 |
| City of West Hollywood | * Indeterminate | Apr 29, 2015 |
| County Of Los Angeles | ** Support | Apr 29, 2015 |
| Los Angeles County Board of Supervisors | ** Support | Apr 29, 2015 |
| Los Angeles County Division, League of California Cities | ** Support | Apr 29, 2015 |
| Los Angeles, City Of | ** Support | Apr 29, 2015 |
| Santa Monica, City Of | * Support | Jun 10, 2015 |
| Torrance, City Of | ** Support | Apr 29, 2015 |
AB 204
Page 4
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: AB 204
Amended: 6/16/15 in Senate
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 6/10/15
AYES: Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley
NO VOTE RECORDED: Hertzberg
ASSEMBLY FLOOR: 78-0, 5/4/15 - See last page for vote
SUBJECT: Redevelopment: County of Los Angeles
DIGEST: This bill prohibits oversight boards in Los Angeles County from being consolidated into a single countywide oversight board unless a successor agency adopts a resolution dissolving the board.
Existing law:
Establishes successor agencies to manage the process of unwinding former redevelopment agencies’ (RDAs’) affairs.
Directs that each successor agency has an oversight board that is responsible for supervising it and approving its actions.
Allows the Department of Finance (DOF) to review and request reconsideration of an oversight board’s decisions.
Requires that, until July 1, 2016, each successor agency’s seven-member oversight board must be comprised of seven members appointed by specified appointing authorities.
Requires, on July 1, 2016, in each county in which there is more than one oversight board, those oversight boards to be consolidated into a single seven-member oversight board comprised of members appointed by specified appointing authorities.
This bill:
Requires that an oversight board within Los Angeles County must continue to independently operate until its successor agency adopts a resolution dissolving its oversight board and the oversight board approves that resolution.
Specifies that a successor agency’s oversight board ceases to exist after a successor agency resolution to dissolve its oversight board is adopted and approved.
Specifies that, after a successor agency’s oversight board is dissolved, the successor agency will be overseen by the oversight board established pursuant to the statute creating a single countywide oversight board on July 1, 2016.
Makes additional technical and conforming changes to the statutes governing successor agencies’ oversight boards.
Background
Local officials in Los Angeles County worry that consolidating the county’s 71 oversight boards into a single countywide oversight board will place overwhelming administrative burdens on that oversight board. They want the Legislature to prevent all oversight boards in Los Angeles County from being consolidated into a single board next year.
Comments
Purpose of the bill. Stakeholders in the redevelopment dissolution process in Los Angeles County worry about the massive volume of work that would be handled by a single countywide oversight board after state law consolidates the county’s 71 oversight boards next year. Officials note that the countywide oversight board will not have the same level of detailed, institutional knowledge about any particular successor agency’s operations that individual oversight boards currently possess. This may make it difficult for the countywide board to act expeditiously in approving some successor agencies’ actions. Administrative gridlock and slow response times will make it difficult to complete the complex property disposition functions, financial transactions, and tax distributions that are needed to smoothly unwind former RDAs’ affairs in Los Angeles County. By preventing all 71 successor agencies from simultaneously becoming answerable to a single oversight board, this bill avoids placing a potentially counterproductive burden on the redevelopment wind-down process in Los Angeles County.
Trailer bill alternative? After Governor Brown revised his proposed State Budget last month, DOF released draft language of a budget trailer bill which includes an alternative approach to restructuring Los Angeles County’s oversight boards. Under the proposal released by DOF, on July 1, 2016, the 71 oversight boards in Los Angeles County would be consolidated into five oversight boards that would be responsible for successor agencies within each of Los Angeles’ five county supervisor districts.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
American Federation of State, County and Municipal Employees, AFL-CIO
American Federation of State, County and Municipal Employees, District Council 36
City of Alhambra
City of Bell Gardens
City of Cerritos
City of Downey
City of Lakewood
City of Long Beach
City of Montebello
City of Paramount
City of Santa Monica
City of Signal Hill
City of Torrance
City of Whittier
County of Los Angeles
Downtown Long Beach Associates
Los Angeles County Division, League of California Cities
Los Angeles Mayor Eric Garcetti
OPPOSITION: (Verified 6/16/15)
None received
ASSEMBLY FLOOR: 78-0, 5/4/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Dahle
Prepared by: Brian Weinberger / GOV. & F. / (916) 651-4119
6/17/15 14:23:59
**** END ****
AB 204 (O'Donnell) 4/9/15 Page 4 of 4
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert M. Hertzberg, Chair
2015 - 2016 Regular
Bill No: |
AB 204 |
Hearing Date: |
6/10/15 |
Author: |
O'Donnell |
Tax Levy: |
No |
Version: |
4/9/15 |
Fiscal: |
No |
Consultant: |
Weinberger |
||
OVERSIGHT BOARDS IN LOS ANGELES COUNTY
Prohibits oversights boards in Los Angeles County from being consolidated into a single countywide oversight board unless a successor agency adopts a resolution dissolving the board.
Background and Existing Law
Until 2011, the Community Redevelopment Law allowed local officials to set up redevelopment agencies (RDAs), prepare and adopt redevelopment plans, and finance redevelopment activities. Citing a significant State General Fund deficit, Governor Brown’s 2011-12 budget proposed eliminating RDAs and returning billions of dollars of property tax revenues to schools, cities, and counties to fund core services. Among the statutory changes that the Legislature adopted to implement the 2011-12 budget, AB X1 26 (Blumenfield, 2011) dissolved all RDAs. The California Supreme Court's 2011 ruling in California Redevelopment Association v. Matosantos upheld AB X1 26, but invalidated AB X1 27 (Blumenfield, 2011), which would have allowed most RDAs to avoid dissolution.
AB X1 26 established successor agencies to manage the process of unwinding former RDAs’ affairs. With limited exceptions, the city or county that created each former RDA now serves as that RDA’s successor agency. Each successor agency has an oversight board that is responsible for supervising it and approving its actions. The Department of Finance (DOF) can review and request reconsideration of an oversight board’s decisions.
Until July 1, 2016, each successor agency’s seven-member oversight board is comprised of:
One member appointed by the county board of supervisors.
One member appointed by the mayor for the city that formed the former RDA.
One member appointed by the largest special district, by property tax share, within the territorial jurisdiction of the former RDA.
One member appointed either by the elected county superintendent of education to represent schools or, if a superintendent is appointed, by the county board of education.
One member to represent community college districts, who is appointed by the Chancellor of the California Community Colleges.
One member of the public, who is appointed by the county board of supervisors.
One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at the time, as specified.
On July 1, 2016, in each county in which there is more than one oversight board, those oversight boards must be consolidated into a single seven-member oversight board comprised of:
One member appointed by the county board of supervisors.
One member appointed by the city selection committee established pursuant to a specified statute.
One member appointed by the independent special district selection committee established pursuant to a specified statute.
One member appointed either by the elected county superintendent of education to represent schools or, if superintendent is appointed, by the county board of education.
One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county.
One member of the public appointed by the county board of supervisors.
One member appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
Local officials in Los Angeles County worry that consolidating the county’s 71 oversight boards into a single countywide oversight board will place overwhelming administrative burdens on that oversight board. They want the Legislature to prevent all oversight boards in Los Angeles County from being consolidated into a single board next year.
Proposed Law
Assembly Bill 204 requires that an oversight board within Los Angeles County must continue to independently operate until its successor agency adopts a resolution dissolving its oversight board and the oversight board approves that resolution. AB 204 specifies that a successor agency’s oversight board ceases to exist after a successor agency resolution to dissolve its oversight board is adopted and approved. The bill specifies that, after a successor agency’s oversight board is dissolved, the successor agency will be overseen by the oversight board established pursuant to the statute creating a single countywide oversight board on July 1, 2016.
AB 204 makes additional technical and conforming changes to the statutes governing successor agencies’ oversight boards.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. Stakeholders in the redevelopment dissolution process in Los Angeles County worry about the massive volume of work that would be handled by a single countywide oversight board after state law consolidates the county’s 71 oversight boards next year. Officials note that the countywide oversight board will not have the same level of detailed, institutional knowledge about any particular successor agency’s operations that individual oversight boards currently possess. This may make it difficult for the countywide board to act expeditiously in approving some successor agencies’ actions. Administrative gridlock and slow response times will make it difficult to complete the complex property disposition functions, financial transactions, and tax distributions that are a needed to smoothly unwind former RDAs’ affairs in Los Angeles County. By preventing all 71 success or agencies from simultaneously becoming answerable to a single oversight board, AB 204 avoids placing a potentially counterproductive burden on the redevelopment wind-down process in Los Angeles County.
2. Discretionary for all agencies? Not every successor agency in Los Angeles County still has complicated business left to complete and a countywide board would doubtless be able to administer the wind-down process of several successor agencies starting immediately. However, AB 204 leaves it up to each successor agency to decide when it is appropriate to consolidate its oversight board into the single countywide board. The Committee may wish to consider amending AB 204 to ensure that the oversight board consolidation process in Los Angeles is not unnecessarily delayed past the time at which the countywide board could be reasonably expected to take on an individual oversight board’s additional workload. For example, the bill could leave the dissolution of an individual oversight board up to the discretion of only those successor agencies that have pending property disposition transactions or those that meet other criteria demonstrating that they would place a significant administrative burden on the countywide oversight board.
3. Let’s be clear. One change that AB 204 makes to the laws governing oversight boards is to delete the word “only” from the current statutory requirement that, on and after July 1, 2016, each county must have “only one oversight board” appointed in a specified manner. This change could lead to confusion over whether any counties other than Los Angeles can form a countywide oversight board without consolidating all of the other oversight boards within the county. To avoid any misinterpretations, the Committee may wish to consider amending AB 204 to clarify that Los Angeles County is the only county that is being exempted from the July 1, 2016 date by which all other counties must have only one oversight board for all successor agencies within a county.
4. Trailer bill alternative? After Governor Brown revised his proposed State Budget last month, the Department of Finance released draft language of a budget trailer bill which includes an alternative approach to restructuring Los Angeles County’s oversight boards. Under the proposal released by the Department of Finance, on July 1, 2016, the 71 oversight boards in Los Angeles County would be consolidated into five oversight boards that would be responsible for successor agencies within each of Los Angeles’ five county supervisor districts.
5. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). AB 204 contains findings and declarations explaining the need for legislation that applies only to Los Angeles County.
Assembly Actions
Assembly Local Government Committee: 9-0
Assembly Housing & Community Development Committee: 6-0
Assembly Floor: 78-0
Support and Opposition
(6/4/15)
Support: American Federation of State, County and Municipal Employees, AFL-CIO; American Federation of State, County and Municipal Employees, District Council 36; Cities of Alhambra, Bell Gardens, Cerritos, Downey, Lakewood, Long Beach. Montebello, Paramount, Santa Monica, Signal Hill, Torrance, Whittier; County of Los Angeles; Downtown Long Beach Associates; Los Angeles Mayor Eric Garcetti; Los Angeles County Division, League of California Cities.
Opposition: Unknown.
-- END --
AB 204
Page 4
ASSEMBLY THIRD READING
AB 204
(O'Donnell)
As Amended April 9, 2015
Majority vote
Committee |
Votes |
Ayes |
Noes |
Local Government |
9-0 |
Maienschein, Gonzalez, Alejo, Chiu, Cooley, Gordon, Holden, Linder, Waldron |
|
Housing |
6-0 |
Chau, Steinorth, Burke, Chiu, Beth Gaines, Lopez |
|
SUMMARY: Requires oversight boards in the County of Los Angeles to continue to operate despite the July 1, 2016, date in existing law that allows only one single countywide oversight board in each county to wind down redevelopment activities. Specifically, this bill:
Requires an oversight board within the County of Los Angeles to continue to independently operate beyond the July 1, 2016, date in existing law until its successor agency adopts a resolution dissolving its oversight board and its oversight board approves that resolution, after which time the successor agency shall be overseen by the single oversight board established in current law.
Clarifies that any oversight board for a given successor agency shall cease to exist, if a successor agency has dissolved the oversight board pursuant to 1), above.
Declares the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfers fiduciary duties to the countywide oversight board.
Finds and declares that a special law is necessary and that a general law cannot be made applicable because of the unique circumstances of the County of Los Angeles.
Makes other findings and declarations.
EXISTING LAW:
Dissolves redevelopment agencies and institutes a process for winding down their activities.
Defines "enforceable obligations."
Requires successor agencies make payments due to enforceable obligations, as specified.
Requires successor agencies to prepare a Recognized Obligation Payments Schedule (ROPS), before each six-month fiscal period, in accordance with specified requirements.
Requires each successor agency to have an oversight board of seven members to approve certain actions of the successor agency, and requires the selection of members as follows:
One member appointed by the county board of supervisors;
One member appointed by the mayor for the city that formed the redevelopment agency;
One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenues, as specified;
One member appointed by the county superintendent of education to represent schools, if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public appointed by the county board of supervisors; and,
One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at the time, as specified.
Requires the Department of Finance (DOF) to review the actions of an oversight board.
Requires, commencing on or after July 1, 2016, in each county where more than one oversight board was created, there to be only one oversight board appointed as follows:
One member may be appointed by the county board of supervisors;
One member may be appointed by the city selection committee, as provided. In a city and county, the mayor may appoint one member;
One member may be appointed by the independent special district selection committee, as provided;
One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public may be appointed by the county board of supervisors; and,
One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
FISCAL EFFECT: None
COMMENTS:
Redevelopment Dissolution. The Legislature approved the dissolution of the state's 400-plus redevelopment agencies as part of the 2011 Budget Act. Redevelopment agencies were officially dissolved as of February 1, 2012, after a period of litigation. To help facilitate the unwinding process, successor agencies were established at the local level to manage redevelopment projects that were underway, to make payments on enforceable obligations and to dispose of redevelopment assets and properties. Each successor agency has an oversight board that supervises its work, comprised of representatives of the local agencies that serve the project area – the city, county, special districts and educational agencies. Oversight board members have a fiduciary responsibility to holders of enforceable obligations, as well as the local agencies that would benefit from property tax distributions from the former project area.
Current law says that in a county where only one oversight board was created, there will be no change to the composition of that oversight board, commencing on or after July 1, 2016. Current law also provides that on or after July 1, 2016, in each county where more than one oversight board was created, there shall be only one oversight board that continues to exist in that county, and specifies that the membership of that single oversight board that will exist after July 1, 2016, may include the following: one member appointed by the county board of supervisors, one member appointed by the city selection committee, one member appointed by the independent special district selection committee, one member by the county superintendent of education, as specified, one member by the Chancellor of the California Community Colleges, one member of the public appointed by the county board of supervisors, and one member appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
Bill Summary. This bill requires oversight boards within Los Angeles County to continue to independently operate beyond the July 1, 2016, date in existing law. There are currently 71 oversight boards in Los Angeles County. The bill specifies that an oversight board in Los Angeles County that continues to exist beyond the July 1, 2016, date would no longer exist once the successor agency adopts a resolution dissolving that oversight board and its oversight board approves that resolution, and when that happens, that successor agency would then be overseen by the single county oversight board that is established pursuant to existing law.
This bill is sponsored by the City of Long Beach.
Author's Statement. According to the author, "A single oversight board would not expeditiously dispose of properties given the number of property covered by a single Long Range Property Management Plan. Additionally, a single county oversight board will not have nearly the same level of institutional knowledge of each Successor Agency's operations as individual local boards. The oversight boards need their individual institutional knowledge to ensure financial transactions and tax distributions occur smoothly and without delay."
The author also notes that "Because a large number of enforceable obligations remain in Los Angeles County, funneling the workload of 71 oversight boards into a single entity will cause substantial gridlock in the redevelopment dissolution process. Twenty-seven Successor Agencies in Los Angeles County have not yet received DOF-approved Long Range Property Management Plans. Of these 27, eight successor agencies are still lacking a Finding of Completion."
Arguments in Support. Supporters of the bill argue that it will shield the single county oversight board in Los Angeles from having to immediately tackle a workload that would have otherwise been spread across 71 oversight boards. Supporters also note that the current one-size-fits-all approach in existing law could unfairly burden cities which need additional attention in their oversight processes.
Arguments in Opposition. None on file.
Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958 FN: 0000254
AB 204
Page 4
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Ed Chau, Chair
AB 204
(O’Donnell) – As Amended April 9, 2015
SUBJECT: Redevelopment: County of Los Angeles
SUMMARY: Requires oversight boards in the County of Los Angeles to continue to operate despite the July 1, 2016, date in existing law that allows only one countywide oversight board in each county to wind down redevelopment activities. Specifically, this bill:
Requires an oversight board within the County of Los Angeles to continue to independently operate beyond the July 1, 2016 date in existing law until its successor agency adopts a resolution dissolving its oversight board, after which time the successor agency shall be overseen by the single oversight board established in current law.
Declares the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfers fiduciary duties to the countywide oversight board.
Finds and declares that a special law is necessary and that a general law cannot be made applicable because of the unique circumstances of the County of Los Angeles.
Makes other findings and declarations.
EXISTING LAW:
Dissolves redevelopment agencies (RDAs) and institutes a process for winding down their activities.
Defines "enforceable obligations."
Requires successor agencies make payments due to enforceable obligations, as specified.
Requires successor agencies to prepare a Recognized Obligation Payments Schedule (ROPS), before each six-month fiscal period, in accordance with specified requirements.
Requires each successor agency to have an oversight board of seven members to approve certain actions of the successor agency, and requires the selection of members as follows:
One member appointed by the county board of supervisors;
One member appointed by the mayor for the city that formed the redevelopment agency;
One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenues, as specified;
One member appointed by the county superintendent of education to represent schools,
if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public appointed by the county board of supervisors; and,
One member representing the employees of the former RDA appointed by the mayor or chair of the board of supervisors, from the recognized employee organization representing the largest number of former RDA employees employed by the successor agency at the time, as specified.
Requires the Department of Finance (DOF) to review the actions of an oversight board.
Requires, commencing on or after July 1, 2016, in each county where more than one oversight board was created, there to be only one oversight board appointed as follows:
One member may be appointed by the county board of supervisors;
One member may be appointed by the city selection committee, as provided. In a city and county, the mayor may appoint one member;
One member may be appointed by the independent special district selection committee, as provided;
One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public may be appointed by the county board of supervisors; and,
One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
FISCAL EFFECT: Unknown.
COMMENTS:
Background: In 2011, the Legislature approved and the Governor signed two measures, ABX1 26 and ABX1 27 that together dissolved RDAs as they existed at the time and created a voluntary redevelopment program on a smaller scale. In response, the California Redevelopment Association (CRA), League of California Cities, along with other parties, filed suit challenging the two measures. The Supreme Court denied the petition for peremptory writ of mandate with respect to ABX1 26. However, the Court did grant CRA's petition with respect to ABX1 27. As a result, all RDAs were required to dissolve as of February 1, 2012.
To help facilitate the unwinding process, successor agencies were established at the local level to manage redevelopment projects that were underway, to make payments on enforceable obligations and to dispose of redevelopment assets and properties. Each successor agency has an oversight board that supervises its work, comprised of representatives of the local agencies that serve the project area – the city, county, special districts and educational agencies. Oversight board members have a fiduciary responsibility to holders of enforceable obligations, as well as the local agencies that would benefit from property tax distributions from the former project area.
Existing law provides that in a county where only one oversight board was created, there will be no change to the composition of that oversight board, commencing on or after July 1, 2016. In each county where more than one oversight board was created, existing law requires that on or after July 1, 2016, those oversight boards are dissolved and there will be only one oversight board that continues to exist in that county.
Limited application to Los Angeles County: This bill requires the 71 oversight boards within Los Angeles County to continue to independently operate beyond July 1, 2016. The bill specifies to dissolve one of those 71 oversight boards, a successor agency must adopt a resolution dissolving the oversight board at which time, the successor agency and the wind down of any redevelopment dissolution activities, will be overseen by the singe countywide oversight board.
Purpose of this bill: According to the author, "A single oversight board would not expeditiously dispose of properties given the number of property covered by a single Long Range Property Management Plan. Additionally, a single county oversight board will not have nearly the same level of institutional knowledge of each Successor Agency's operations as individual local boards. The oversight boards need their individual institutional knowledge to ensure financial transactions and tax distributions occur smoothly and without delay. Because a large number of enforceable obligations remain in Los Angeles County, funneling the workload of 71 oversight boards into a single entity will cause substantial gridlock in the redevelopment dissolution process. Twenty-seven Successor Agencies in Los Angeles County have not yet received DOF-approved Long Range Property Management Plans. Of these 27, eight successor agencies are still lacking a Finding of Completion."
Double referred: This bill was doubled referred to the Assembly Local Government Committee, where it passed 9-0 on April 8, 2015.
REGISTERED SUPPORT / OPPOSITION:
Support
City of Long Beach (Sponsor)
AFSCME, AFL-CIO
AFSCME, District Council 36
City of Bell Gardens
City of Cerritos
City of Downey
City of Lakewood
City of Los Angeles
City of Montebello
City of Paramount
City of Santa Monica
City of Signal Hill
City of Torrance
City of Whittier
Los Angeles County Board of Supervisors
Los Angeles County Division of the League of California Cities
Opposition
None on file
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085
AB 204
Page 4
Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Brian Maienschein, Chair
AB 204
(O'Donnell) – As Introduced January 29, 2015
SUBJECT: Redevelopment: County of Los Angeles.
SUMMARY: Requires oversight boards in the County of Los Angeles to continue to operate despite the July 1, 2016, date in existing law that allows only one single countywide oversight board in each county to wind down redevelopment activities. Specifically, this bill:
Requires an oversight board within the County of Los Angeles to continue to independently operate beyond the July 1, 2016, date in existing law until its successor agency adopts a resolution dissolving its oversight board, after which time the successor agency shall be overseen by the single oversight board established in current law.
Clarifies that any oversight board for a given successor agency shall cease to exist, if a successor agency has dissolved the oversight board pursuant to 1), above.
Declares the intent of the Legislature to continue all oversight boards in the County of Los Angeles in existence until the respective successor agency requests dissolution of its oversight board and transfers fiduciary duties to the countywide oversight board.
Finds and declares that a special law is necessary and that a general law cannot be made applicable because of the unique circumstances of the County of Los Angeles.
Makes other findings and declarations.
EXISTING LAW:
Dissolves redevelopment agencies and institutes a process for winding down their activities.
Defines "enforceable obligations."
Requires successor agencies make payments due to enforceable obligations, as specified.
Requires successor agencies to prepare a Recognized Obligation Payments Schedule (ROPS), before each six-month fiscal period, in accordance with specified requirements.
Requires each successor agency to have an oversight board of seven members to approve certain actions of the successor agency, and requires the selection of members as follows:
One member appointed by the county board of supervisors;
One member appointed by the mayor for the city that formed the redevelopment agency;
One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenues, as specified;
One member appointed by the county superintendent of education to represent schools,
if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public appointed by the county board of supervisors; and,
One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at the time, as specified.
Requires the Department of Finance (DOF) to review the actions of an oversight board.
Requires, commencing on or after July 1, 2016, in each county where more than one oversight board was created, there to be only one oversight board appointed as follows:
One member may be appointed by the county board of supervisors;
One member may be appointed by the city selection committee, as provided. In a city and county, the mayor may appoint one member;
One member may be appointed by the independent special district selection committee, as provided;
One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment shall be made by the county board of education;
One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county;
One member of the public may be appointed by the county board of supervisors; and,
One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county.
FISCAL EFFECT: None
COMMENTS:
Redevelopment Dissolution. The Legislature approved the dissolution of the state's 400-plus redevelopment agencies as part of the 2011 Budget Act. Redevelopment agencies were officially dissolved as of February 1, 2012, after a period of litigation. To help facilitate the unwinding process, successor agencies were established at the local level to manage redevelopment projects that were underway, to make payments on enforceable obligations and to dispose of redevelopment assets and properties. Each successor agency has an oversight board that supervises its work, comprised of representatives of the local agencies that serve the project area – the city, county, special districts and educational agencies. Oversight board members have a fiduciary responsibility to holders of enforceable obligations, as well as the local agencies that would benefit from property tax distributions from the former project area.
Current law says that in a county where only one oversight board was
created, there will be no change to the composition of that oversight
board, commencing on or after July 1, 2016. Current law also
provides that on or after July 1, 2016, in each county where more
than one oversight board was created, there shall be only one
oversight board that continues to exist in that county, and specifies
that the membership of that single oversight board that will exist
after July 1, 2016, may include the following: one member appointed
by the county board
of supervisors, one member appointed by the
city selection committee, one member appointed by the independent
special district selection committee, one member by the county
superintendent of education, as specified, one member by the
Chancellor of the California Community Colleges, one member of the
public appointed by the county board of supervisors, and one member
appointed by the recognized employee organization representing the
largest number of successor agency employees in the county.
Bill Summary. This bill requires oversight boards within Los Angeles County to continue to independently operate beyond the July 1, 2016, date in existing law. There are currently 71 oversight boards in Los Angeles County. The bill specifies that an oversight board in Los Angeles County that continues to exist beyond the July 1, 2016, date would no longer exist once the successor agency adopts a resolution dissolving that oversight board, and when that happens, that successor agency would then be overseen by the single county oversight board that is established pursuant to existing law.
This bill is sponsored by the City of Long Beach.
Author's Statement. According to the author, "A single oversight board would not expeditiously dispose of properties given the number of property covered by a single Long Range Property Management Plan. Additionally, a single county oversight board will not have nearly the same level of institutional knowledge of each Successor Agency's operations as individual local boards. The oversight boards need their individual institutional knowledge to ensure financial transactions and tax distributions occur smoothly and without delay."
The author also notes that "Because a large number of enforceable obligations remain in Los Angeles County, funneling the workload of 71 oversight boards into a single entity will cause substantial gridlock in the redevelopment dissolution process. Twenty-seven Successor Agencies in Los Angeles County have not yet received DOF-approved Long Range Property Management Plans. Of these 27, eight successor agencies are still lacking a Finding of Completion."
Arguments in Support. Supporters of the bill argue that it will shield the single county oversight board in Los Angeles from having to immediately tackle a workload that would have otherwise been spread across 71 oversight boards. Supporters also note that the current one-size-fits-all approach in existing law could unfairly burden cities which need additional attention in their oversight processes.
Arguments in Opposition. None on file.
Double-Referral. This bill is double-referred to the Housing and Community Development Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
City of Long Beach [SPONSOR]
American Federation of State, County and Municipal Employees, AFL-CIO
American Federation of State, County and Municipal Employees, District Council 36
Cities of Bell Gardens, Cerritos, Downey, Lakewood, Montebello, Paramount, Santa Monica, Signal Hill, Torrance, Whittier
County of Los Angeles
Eric Garcetti, Mayor, City of Los Angeles
Los Angeles County Division, League of California Cities
Opposition
None on file
Analysis Prepared by: Debbie Michel / L. GOV. / (916) 319-3958
Discussed in Hearing
5MIN
Senate Standing Committee on Governance and Finance
1MIN
Assembly Floor
2MIN
Assembly Standing Committee on Housing and Community Development
Bill Author
Bill Co-Author(s):