BILL NUMBER: SBX3 29 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 29, 2009
INTRODUCED BY Senator Ducheny
APRIL 13, 2009
An act relating to the Budget Act of 2009
to amend Sections 33685, 33686, and 33687 of the Health and Safety
Code, relating to redevelopment .
LEGISLATIVE COUNSEL'S DIGEST
SB 29, as amended, Ducheny. Budget Act of 2009.
Community redevelopment: education.
(1) Existing property tax law requires the county auditor, for
each fiscal year, to allocate property tax revenue to local
jurisdictions in accordance with specified formulas and procedures,
and generally requires that each jurisdiction be allocated an amount
equal to the total of the amount of revenue allocated to that
jurisdiction in the prior fiscal year, subject to certain
modifications, and that jurisdiction's portion of the annual tax
increment, as defined. Existing law requires a redevelopment agency
to make a remittance, as determined by the Director of Finance prior
to May 10, to the county Educational Revenue Augmentation Fund (ERAF)
for the 2008-09 fiscal year and authorizes a legislative body to
remit, in lieu of making that payment prior to May 10, 2009, a
designated amount to the county auditor for deposit in the county
ERAF.
This bill would additionally require a redevelopment agency to
make the remittance for the 2009-10 and 2010-11 fiscal years and
would require the agency to remit that payment on or before June 30
of that fiscal year. The bill would make conforming changes to
provisions of existing law relating to revenue payments deposited by
redevelopment agencies in the county ERAF for allocation to school
entities.
The bill would require the county auditor-controller to distribute
funds that are remitted to the county ERAF by a city-operated or
county-operated redevelopment agency only to a K-12 school district,
as defined, that is located partially or entirely within the project
area of the redevelopment agency in an amount proportional to the
average daily attendance of each school district. The bill would
require the county superintendent of schools to provide the average
daily attendance reported for each school district as of the Second
Proportional Apportionment for the 2008-09, 2009-10, and 2010-11
fiscal years to the county auditor-controller. The bill would require
the county auditor-controller to notify, on or before October 1 of
that fiscal year, the Department of Finance of the amount of funding
apportioned to each school district pursuant to this act.
The bill would also require, for the 2008-09, 2009-10, and 2010-11
fiscal years the amount apportioned by the Superintendent of Public
Instruction to each school district pursuant to a specified provision
of existing law and, for purposes of making the computations
required by Section 8 of Article XVI of the California Constitution,
specified General Fund revenues appropriated for school districts, to
be reduced by the total amount of ERAF moneys a school district
receives, regardless of the actual date the funds are received from
each redevelopment agency.
By imposing new duties upon local tax officials and school
districts with regard to the annual allocation of these revenues,
this bill would impose a state-mandated local program.
(2) This bill would incorporate changes in Section 33685 of the
Health and Safety Code as proposed by either AB 198 or SB 80 of the
2009-10 Regular Session that would only become operative if either AB
198 or SB 80 is enacted and becomes effective immediately, either
bill amends Section 33685 of the Health and Safety Code, and this
bill is enacted after either bill.
(3) 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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(4) The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session
for that purpose. The Governor issued a proclamation declaring a
fiscal emergency, and calling a special session for this purpose, on
December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares
all of the following:
(1) The effectuation of the primary purposes of the Community
Redevelopment Law, including job creation, attracting new private
commercial investments, the physical and social improvement of
residential neighborhoods, and the provision and maintenance of low-
and moderate-income housing, is dependent upon the existence of an
adequate and financially solvent school system that is capable of
providing for the safety and education of students who live within
both redevelopment project areas and housing assisted by
redevelopment agencies. The attraction of new businesses to
redevelopment project areas depends upon the existence of an
adequately trained workforce, which can only be accomplished if
education at the primary and secondary schools is adequate. The
ability of communities to build residential development and attract
residents in redevelopment project areas depends upon the existence
of adequately maintained and operating schools serving the
redevelopment project area. The development and maintenance of low-
and moderate-income housing that are both within redevelopment
project areas and throughout the community can only be successful if
adequate schools exist to serve the residents of this housing.
(2) Redevelopment agencies have financially assisted schools that
benefit and serve the project area by paying part or all of the land
and the construction of school facilities and other improvements.
Redevelopment agencies have financially assisted schools to alleviate
the financial burden or detriment caused by the establishment of
redevelopment project areas.
(3) Because of the reduced funds available to the state to assist
schools that benefit and serve redevelopment project areas during the
2008-09, 2009-10, and 2010-11 fiscal years, it is necessary for
redevelopment agencies to make additional payments to assist the
programs and operations of these schools to ensure that the
objectives stated in this act can be met.
(4) The payments to schools pursuant to this act are of benefit to
redevelopment project areas.
(b) It is the intent of the Legislature in enacting this act to
create a procedure to ensure that the funds contributed by a
redevelopment agency pursuant to this act are allocated to school
districts serving pupils living within or in the vicinity of any
project area of that redevelopment agency.
SEC. 2. Section 33685 of the Health and
Safety Code , as proposed to be amended by AB 198 or SB
80 of the 2009-10 Regular Session, is amended to read:
33685. (a) (1) For the 2008-09 fiscal year
, 2009-10, and 2010-11 fiscal years, a redevelopment
agency shall remit, as determined by the Director of Finance, on or
before June 30 of that fiscal year , an amount equal to
the amount determined for that agency pursuant to subparagraph (K) of
paragraph (2) to the county auditor for deposit in the county
Educational Revenue Augmentation Fund, created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code. Notwithstanding any other law, in
the 2008-09 fiscal year , 2009-10, and
2010-11 fiscal years, respectively , no funds deposited in the
county Educational Revenue Augmentation Fund pursuant to this section
shall be distributed to a community college district.
(2) On or before November 15, 2008, November 15, 2009, and
November 15, 2010, respectively, the Director of Finance shall
do all of the following:
(A) (i) Determine the value of 5 percent of the statewide total
property tax revenue apportioned to agencies pursuant to Section
33670.
(ii) If the value determined pursuant to clause (i) exceeds
three-hundred three hundred fifty
million dollars ($350,000,000), the value determined in clause (i)
shall be allocated to each agency as provided in paragraphs (B) to
(J), inclusive.
(iii) If the value determined pursuant to clause (i) does not
exceed three-hundred three hundred
fifty million dollars ($350,000,000), three-hundred
three hundred fifty million dollars
($350,000,000) shall be allocated to each agency as provided in
subparagraphs (B) to (J), inclusive.
(B) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(C) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(D) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (C).
(E) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (B) by the percentage factor
determined pursuant to subparagraph (D).
(F) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(G) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(H) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (G).
(I) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (F) by the percentage factor
determined pursuant to subparagraph (H).
(J) Add the amount determined pursuant to subparagraph (E) to the
amount determined pursuant to subparagraph (I).
(K) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Educational Revenue Augmentation Fund
pursuant to paragraph (1).
(3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
(b) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6,
unless, in a given fiscal year, executed contracts exist that would
be impaired if the agency reduced the amount allocated to the Low and
Moderate Income Housing Fund pursuant to the authority of this
subdivision.
(2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys are remitted to the county auditor for
deposit in the county Educational Revenue Augmentation Fund pursuant
to subdivision (a).
(c) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income. No moneys held in
a low- and moderate-income fund as of July 1 of the applicable fiscal
year may be used for this purpose.
(d) The legislative body shall, on or before June 30, 2009,
June 30, 2010, and June 30, 2011, report to the county auditor
as to how the agency intends to fund the allocation required by this
section, or that the legislative body intends to remit the amount in
lieu of the agency pursuant to Section 33687.
(e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
(f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
(g) In making the annual determinations required by subdivision
(a), the Director of Finance shall use those amounts reported in
"Table 7, Assessed Valuation, Tax Increment Distribution and
Statement of Indebtedness" for all agencies and for each agency in
the most recent published edition of the Controller's Community
Redevelopment Agencies Annual Report made pursuant to Section 12463.3
of the Government Code.
(h) If revised reports have been accepted by the Controller on or
before September 1 of the applicable fiscal year, the Director of
Finance shall use appropriate data that has been certified by the
Controller for the purpose of making the determinations required by
subdivision (a).
(i) Nothing in this section shall be construed as extending the
time limits on the ability of agencies to do any of the following:
(1) Establish loans, advances, or indebtedness.
(2) Receive tax increment revenues.
(3) Exercise eminent domain powers.
(j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Educational Revenue
Augmentation Fund by a city-operated or county-operated redevelopment
agency pursuant to this section only to a K-12 school district that
is located partially or entirely within any project area of that
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
(2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Educational Revenue Augmentation Fund moneys a school district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
(3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
Second Principal Apportionment for the 2008-09 fiscal year
, 2009-10, and 2010-11 fiscal years, respectively,
to the county auditor-controller.
(B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those school districts within the county that are not excess tax
school entities, as defined in subdivision (n) of Section 95 of the
Revenue and Taxation Code.
(4) The county auditor-controller shall notify, on or before
October 1, 2009, October 1, 2010, and October 1, 2011, the
Department of Finance of the amount of funding apportioned to each
school district pursuant to this subdivision.
(k) (1) For the 2008-09 fiscal year ,
2009-10, and 2010-11 fiscal years, respectively ,
the amount apportioned by the Superintendent of Public Instruction to
each school district pursuant to Section 42238 of the Education Code
shall be reduced by the total amount of Educational Revenue
Augmentation Fund moneys a school district receives, regardless of
the actual date the funds are received, pursuant to this section from
each redevelopment agency.
(2) (A) For a fiscal year in which the amount required to be
applied by the state pursuant to Section 8 of Article XVI of the
California Constitution is determined pursuant to paragraph (2) or
(3) of subdivision (b) of that section and for the purposes of making
the computations required by Section 8 of Article XVI of the
California Constitution, "General Fund revenues appropriated for
school districts," as defined in subdivision (c) of Section 41202 of
the Education Code, for the 2008-09 fiscal year
, 2009-10, and 2010-11 fiscal years, respectively
, and included within the "total allocations to school
districts and community college districts from General Fund proceeds
of taxes appropriated pursuant to Article XIII B," as defined in
subdivision (e) of Section 41202 of the Education Code, for the
2008-09 fiscal year , 2009-10, and 2010-11
fiscal years, respectively , shall be reduced by the total
amount of Educational Revenue Augmentation Fund moneys a school
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency.
(B) For a fiscal year in which the amount required to be applied
by the state pursuant to Section 8 of Article XVI of the California
Constitution is determined pursuant to paragraph (1) of subdivision
(b) of that section, this section shall be deemed to be "qualifying
provisions" for purposes of Section 41204.1 of the Education Code and
the Director of Finance shall recalculate the percentage determined
pursuant to paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution in a manner consistent with
Section 41204.1 of the Education Code.
(3) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Educational Revenue Augmentation Fund moneys a school
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivision (g) of Section 41202 of the Education Code, for the
2008-09 fiscal year , 2009-10, and
2010-11 fiscal years, respectively .
(l) For purposes of this section, the following definitions shall
apply:
(1) "City-operated redevelopment district" means a redevelopment
agency created by the legislative body of a city.
(2) "County-operated redevelopment district" means a redevelopment
agency created by the legislative body of a county or city and
county.
(3) "K-12 school district" has the same meaning as any school
district, as defined in Section 80 of the Education Code.
(m) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
(n) The Legislature finds and declares that subdivision (j) is
added to this section in furtherance of the legislative findings and
declarations contained in subdivisions (a) and (d) of Section 33680.
SEC. 3. Section 33685 of the Health and
Safety Code is amended to read:
33685. (a) (1) For the 2008-09 fiscal year
, 2009-10, and 2010-11 fiscal years, respectively, a
redevelopment agency shall remit, as determined by the Director of
Finance, prior to May 10 on or before June 30
of that fiscal year , an amount equal to the amount determined
for that agency pursuant to subparagraph (K) of paragraph (2) to the
county auditor for deposit in the county Educational Revenue
Augmentation Fund, created pursuant to Article 3 (commencing with
Section 97) of Chapter 6 of Part 0.5 of Division 1 of the Revenue and
Taxation Code. Notwithstanding any other law, in the 2008-09
fiscal year , 2009-10, and 2010-11 fiscal
years, respectively , no funds deposited in the county
Educational Revenue Augmentation Fund pursuant to this section shall
be distributed to a community college district.
(2) On or before November 15, 2008, November 15, 2009, and
November 15, 2010, respectively, the Director of Finance shall
do all of the following:
(A) (i) Determine the value of five 5
percent of the statewide total property tax revenue apportioned
to agencies pursuant to Section 33670.
(ii) If the value determined pursuant to clause (i) exceeds
three-hundred three hundred fifty
million dollars ($350,000,000), the value determined in clause (i)
shall be allocated to each agency as provided in paragraphs (B) to
(J), inclusive.
(iii) If the value determined pursuant to clause (i) does not
exceed three-hundred three hundred
fifty million dollars ($350,000,000), three-hundred
three hundred fifty million dollars
($350,000,000) shall be allocated to each agency as provided in
subparagraphs (B) to (J), inclusive.
(B) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(C) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
(D) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (C).
(E) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (B) by the percentage factor
determined pursuant to subparagraph (D).
(F) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(G) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
(H) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (G).
(I) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (F) by the percentage factor
determined pursuant to subparagraph (H).
(J) Add the amount determined pursuant to subparagraph (E) to the
amount determined pursuant to subparagraph (I).
(K) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Educational Revenue Augmentation Fund
pursuant to paragraph (1).
(3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
(b) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6,
unless, in a given fiscal year, executed contracts exist that would
be impaired if the agency reduced the amount allocated to the Low and
Moderate Income Housing Fund pursuant to the authority of this
subdivision.
(2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys are remitted to the county auditor for
deposit in the county Educational Revenue Augmentation Fund pursuant
to subdivision (a).
(c) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income. No moneys held in
a low- and moderate-income fund as of July 1 of the applicable fiscal
year may be used for this purpose.
(d) The legislative body shall by March 1 of each year
, on or before June 30, 2010, and June 30, 2011,
report to the county auditor as to how the agency intends to fund
the allocation required by this section, or that the legislative body
intends to remit the amount in lieu of the agency pursuant to
Section 33687.
(e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
(f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
(g) In making the annual determinations required by subdivision
(a), the Director of Finance shall use those amounts reported in
"Table 7, Assessed Valuation, Tax Increment Distribution and
Statement of Indebtedness" for all agencies and for each agency in
the most recent published edition of the Controller's Community
Redevelopment Agencies Annual Report made pursuant to Section 12463.3
of the Government Code.
(h) If revised reports have been accepted by the Controller on or
before September 1 of the applicable fiscal year, the Director of
Finance shall use appropriate data that has been certified by the
Controller for the purpose of making the determinations required by
subdivision (a).
(i) Nothing in this section shall be construed as extending the
time limits on the ability of agencies to do any of the following:
(1) Establish loans, advances, or indebtedness.
(2) Receive tax increment revenues.
(3) Exercise eminent domain powers.
(j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Educational Revenue
Augmentation Fund by a city-operated or county-operated redevelopment
agency pursuant to this section only to a K-12 school district that
is located partially or entirely within any project area of that
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
(2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Educational Revenue Augmentation Fund moneys a school district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
(3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
Second Principal Apportionment for the 2008-09, 2009-10, and 2010-11
fiscal years, respectively, to the county auditor-controller.
(B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those school districts within the county that are not excess tax
school entities, as defined in subdivision (n) of Section 95 of the
Revenue and Taxation Code.
(4) The county auditor-controller shall notify, on or before
October 1, 2009, October 1, 2010, and October 1, 2011, respectively,
the Department of Finance of the amount of funding apportioned to
each school district pursuant to this subdivision.
(k) (1) For the 2008-09, 2009-10, and 2010-11 fiscal years,
respectively, the amount apportioned by the Superintendent of Public
Instruction to each school district pursuant to Section 42238 of the
Education Code shall be reduced by the total amount of Educational
Revenue Augmentation Fund moneys a school district receives,
regardless of the actual date the funds are received, pursuant to
this section from each redevelopment agency.
(2) (A) For a fiscal year in which the amount required to be
applied by the state pursuant to Section 8 of Article XVI of the
California Constitution is determined pursuant to paragraph (2) or
(3) of subdivision (b) of that section and for the purposes of making
the computations required by Section 8 of Article XVI of the
California Constitution, "General Fund revenues appropriated for
school districts," as defined in subdivision (c) of Section 41202 of
the Education Code, for the
2008-09, 2009-10, and 2010-11 fiscal years, respectively, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIII B," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 2008-09, 2009-10,
and 2010-11 fiscal years, respectively, shall be reduced by the
total amount of Educational Revenue Augmentation Fund moneys a school
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency.
(B) For a fiscal year in which the amount required to be applied
by the state pursuant to Section 8 of Article XVI of the California
Constitution is determined pursuant to paragraph (1) of subdivision
(b) of that section, this section shall be deemed to be "qualifying
provisions" for purposes of Section 41204.1 of the Education Code and
the Director of Finance shall recalculate the percentage determined
pursuant to paragraph (1) of subdivision (b) of Section 8 of Article
XVI of the California Constitution in a manner consistent with
Section 41204.1 of the Education Code.
(3) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Educational Revenue Augmentation Fund moneys a school
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivision (g) of Section 41202 of the Education Code, for the
2008-09, 2009-10, and 2010-11 fiscal years, respectively.
(l) For purposes of this section, the following definitions shall
apply:
(1) "City-operated redevelopment district" means a redevelopment
agency created by the legislative body of a city.
(2) "County-operated redevelopment district" means a redevelopment
agency created by the legislative body of a county or city and
county.
(3) "K-12 school district" has the same meaning as any school
district, as defined in Section 80 of the Education Code.
(m) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, or Article 4 (commencing with Section 98) of Chapter
6 of Part 0.5 of Division 1 of, the Revenue and Taxation Code had
this section not been enacted.
(n) The Legislature finds and declares that subdivision (j) is
added to this section in furtherance of the legislative findings and
declarations contained in subdivisions (a) and (d) of Section 33680.
SEC. 4. Section 33686 of the
Health and Safety Code is amended to read:
33686. (a) (1) For purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of this
section, the payment of which is to be made in whole or in part,
directly or indirectly, out of taxes allocated to the agency pursuant
to Section 33670, and that is required by law or provision of the
existing indebtedness to be made during the fiscal year of the
relevant allocation required by Section 33685:
(A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency whether funded, refunded, assumed,
or otherwise pursuant to Article 5 (commencing with Section 33640).
(B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
(C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
(D) An obligation incurred pursuant to Section 33445.
(E) Indebtedness incurred pursuant to Section 33334.2.
(F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2005-06 fiscal year.
(G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
(2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33685.
(3) For purposes of this section, indebtedness shall be deemed to
be incurred prior to the effective date of this section if the agency
has entered into a binding contract subject to normal marketing
conditions or to deliver the indebtedness, or if the redevelopment
agency has received bids for the sale of the indebtedness prior to
that date and the indebtedness is issued for value and evidence
thereof is delivered to the initial purchaser no later than 30 days
after the date of the contract or sale.
(b) For the 2008-09 , 2009-10, and 2010-11 fiscal
year years, respectively , an agency
that has adopted a resolution pursuant to subdivision (c) may
allocate, pursuant to subdivision (a) of Section 33685, to the
auditor less than the amount required by subdivision (a) of Section
33685 if the agency finds that any of the following has occurred:
(1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33685 is
necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the agency during
the 2008-09 fiscal year , 2009-10, and
2010-11 fiscal years, respectively, and that are used by the
agency for that purpose, and the agency has no other funds that can
be used to pay this existing indebtedness and no other feasible
method to reduce or avoid this indebtedness.
(2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33685.
(c) (1) Any agency that intends to allocate, pursuant to
subdivision (b), to the auditor less than the amount required by
subdivision (a) of Section 33685 shall adopt, prior to December 31
, 2008 of that fiscal year , after a
noticed public hearing, a resolution that lists all of the following:
(A) Each existing indebtedness incurred prior to the effective
date of this section.
(B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
(C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
(2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
(3) The legislative body shall additionally adopt the resolution
required by this section.
(d) (1) Any agency that determines, pursuant to subdivision (b),
that it will be unable in the 2008-09 , 2009-10, or 2010-11
fiscal year to allocate the full amount required by subdivision
(a) of Section 33685 may enter into, subject to paragraph (3), an
agreement with the legislative body by February 15 , 2009,
of that fiscal year to fund the payment of the
difference between the full amount required to be paid pursuant to
subdivision (a) of Section 33685 and the amount available for
allocation by the agency.
(2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the agency to finance a portion of a
redevelopment project within the meaning of Section 16 of Article XVI
of the California Constitution. This indebtedness shall be payable
from tax revenues apportioned to the agency pursuant to Section
33670, and any other funds received by the agency. The obligations
imposed by paragraph (1) shall remain an indebtedness of the agency
to the legislative body until paid in full, or until the agency and
the legislative body otherwise agree.
(3) The agreement described in paragraph (1) shall be subject to
those terms and conditions specified in a written agreement between
the legislative body and the agency.
(e) If the agency fails to provide to the county auditor the full
payment required under Section 33685, or fails to arrange for full
payment to be provided on the agency's behalf pursuant to subdivision
(d) or by Section 33687 or 33688, all of the following shall apply:
(1) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
(2) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640) of this chapter.
(3) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
(A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in paragraph (2), whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460) of
this chapter.
(B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
(C) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
(D) Obligations incurred pursuant to Section 33445.
(E) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
(F) Obligations incurred pursuant to Section 33401.
(G) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency failed to make the
payment required by subdivision (a) of Section 33685.
(f) The prohibitions identified in subdivision (e) shall be lifted
once the county auditor certifies to the Director of Finance that
the payment required by Section 33685 has been made by the agency, or
that payment has been made on the agency's behalf pursuant to this
section or to Section 33687 or 33688.
SEC. 5. Section 33687 of the Health and
Safety Code is amended to read:
33687. (a) In lieu of the remittance required by Section 33685,
for the 2008-09 fiscal year , 2009-10, and
2010-11 fiscal years, respectively , a legislative body may
remit, prior to May 10, 2009, on or before
June 30 of that fiscal year, an amount equal to the amount
determined for the agency pursuant to subparagraph (J) of paragraph
(2) of subdivision (a) of Section 33685 to the county auditor for
deposit in the county Educational Revenue Augmentation Fund, created
pursuant to Article 3 (commencing with Section 97) of Chapter 6 of
Part 0.5 of Division 1 of the Revenue and Taxation Code.
Notwithstanding any other provision of law, in the 2008-09
fiscal year , 2009-10, and 2010-11 fiscal years,
respectively , no funds deposited in the county Educational
Revenue Augmentation Fund pursuant to this section shall be
distributed to a community college district.
(b) The legislative body may make the remittance authorized by
this section from any funds that are legally available for this
purpose. No moneys held in an agency's Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6,
shall be used for this purpose.
(c) If the legislative body, pursuant to subdivision (d) of
Section 33685, reported to the county auditor that it intended to
remit the amount in lieu of the agency and the legislative body fails
to transmit the full amount as authorized by this section
by May 10, 2009, on or before June 30 of that f
iscal year, the county auditor, no later than May
15, 2009, June 30 of that fiscal year, shall
transfer an amount necessary to meet the obligation from the
legislative body's allocations pursuant to Chapter 6 (commencing with
Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation
Code. If the amount of the legislative body's allocations are not
sufficient to meet this obligation, the county auditor shall transfer
an additional amount necessary to meet this obligation from the
property tax increment revenue apportioned to the agency pursuant to
Section 33670, provided that no moneys allocated to the agency's Low
and Moderate Income Housing Fund shall be used for this purpose.
SEC. 6. (a) Section 2 of this bill incorporates
amendments to Section 33685 of the Health and Safety Code as proposed
by either AB 198 or SB 80 of the 2009-10 Regular Session. It shall
only become operative if (1) either bill is enacted and becomes
effective immediately, (2) either bill amends Section 33685 of the
Health and Safety Code, and (3) this bill is enacted after either
bill, in which case Section 3 of this bill shall not become
operative.
(b) Section 3 of this bill shall only become operative if either
AB 198 or SB 80 of the 2009-10 Regular Session are not enacted and do
not become effective immediately.
SEC. 7. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 8. This act addresses the fiscal emergency
declared by the Governor by proclamation on December 19, 2008,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.
SEC. 2. This act addresses the fiscal emergency
declared by the Governor by proclamation on December 19, 2008,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.