BILL NUMBER: AB 69 CHAPTERED 10/08/93 CHAPTER 943 FILED WITH SECRETARY OF STATE OCTOBER 8, 1993 APPROVED BY GOVERNOR OCTOBER 8, 1993 PASSED THE SENATE SEPTEMBER 10, 1993 PASSED THE ASSEMBLY SEPTEMBER 10, 1993 AMENDED IN SENATE SEPTEMBER 8, 1993 AMENDED IN SENATE AUGUST 17, 1993 AMENDED IN SENATE JUNE 28, 1993 INTRODUCED BY Assembly Member Cannella (Principal coauthor: Senator Maddy) JANUARY 4, 1993 An act to amend Sections 42238 and 84751 of the Education Code, and to amend Sections 33320.1 and 33670 of, and to add Chapter 4.5 (commencing with Section 33492) to Part 1 of Division 24 of, the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST AB 69, Cannella. Military base closure redevelopment agencies: Castle Joint Powers Redevelopment Agency. (1) Existing law, known as the Community Redevelopment Law, authorizes the establishment of redevelopment agencies in communities in order to address the effects of blight, as defined, in those communities. This bill would add to the Community Redevelopment Law provisions governing the establishment and fiscal affairs of redevelopment agencies based in areas within a military base that has been closed pursuant to the actions of the federal Base Closure Commission. Because this provision would impose new duties on officials in the affected counties, it would constitute a state-mandated local program. (2) Existing law does not provide for a joint powers agency with jurisdiction over the Castle Air Force Base project area. This bill would express specified findings and declarations of the Legislature relating to the closure of Castle Air Force Base. The bill would create the Castle Joint Powers Redevelopment Agency, with specified membership. It would require the agency to act as the legislative body and planning commission for all approvals and actions required and authorized for the adoption and implementation of a redevelopment plan within the Castle Air Force Base project area, as specified. The bill would specify the amount of tax increment revenues to be apportioned under that plan and would limit the length of the terms of indebtedness incurred to finance that plan. The bill would provide that the agency shall not adopt a redevelopment plan until the City of Atwater adopts a housing element, as specified. By requiring the City of Atwater, the City of Merced, and the County of Merced to be members of the Castle Joint Powers Redevelopment Agency, the bill would impose a state-mandated local program. (3) The California Constitution provides that a local or special statute is invalid in any case if a general statute can be made applicable. The bill would declare that, because of the unique circumstances applicable to the closure of Castle Air Force Base in the County of Merced, a general statute cannot be made applicable. (4) 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, including the creation of a State Mandates Claims Fund to pay the costs of mandates which do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to those statutory provisions, and if the statewide cost does not exceed $1,000,000, shall be made from the State Mandates Claims Fund. However, as to costs incurred by the County of Merced under the bill, the bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 42238 of the Education Code is amended to read: 42238. (a) For the 1984-85 fiscal year and each fiscal year thereafter, the county superintendent of schools shall determine a revenue limit for each school district in the county pursuant to this section. (b) The base revenue limit for the current fiscal year shall be determined by adding to the base revenue limit for the prior fiscal year the following amounts: (1) The inflation adjustment specified in Section 42238.1. (2) For the 1985-86 and 1986-87 fiscal years only, the equalization adjustment specified in Section 42238.4. (3) For the 1985-86 fiscal year, the amount received per unit of average daily attendance in the 1984-85 fiscal year pursuant to Section 42238.7. (4) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount per unit of average daily attendance received in the prior fiscal year pursuant to Section 42238.8. (c) Except for districts subject to subdivision (d), the base revenue limit computed pursuant to subdivision (b) shall be multiplied by the district average daily attendance computed pursuant to Section 42238.5. (d) For districts for which the number of units of average daily attendance determined pursuant to Section 42238.5 is greater for the current fiscal year than for the 1982-83 fiscal year, compute the following amount, in lieu of the amount computed pursuant to subdivision (c): (1) Multiply the base revenue limit computed pursuant to subdivision (c) by the average daily attendance computed pursuant to Section 42238.5 for the 1982-83 fiscal year. (2) Multiply the lesser of the amount in subdivision (c) or 1.05 times the statewide average base revenue limit per unit of average daily attendance for districts of similar type for the current fiscal year by the difference between the average daily attendance computed pursuant to Section 42238.5 for the current and 1982-83 fiscal years. (3) Add the amounts in paragraphs (1) and (2). (e) The base revenue limit per unit of average daily attendance shall be the lesser of the following amounts: (1) The amount determined in subdivision (b). (2) The amount computed pursuant to Section 42238 for the prior fiscal year divided by the prior fiscal year revenue limit average daily attendance times the sum of 1.0 and twice the percentage increase in revenue limits computed pursuant to Section 42238.1 for the current fiscal year. (f) For districts electing to compute units of average daily attendance pursuant to subdivision (a) of Section 42238.5, the amount computed pursuant to Article 4 (commencing with Section 42280) shall be added to the amount computed in subdivision (c) or (d), as appropriate. (g) For the 1984-85 fiscal year only, the county superintendent shall reduce the total revenue limit computed in this section by the amount of the decreased employer contributions to the Public Employees' Retirement System resulting from enactment of Chapter 330 of the Statutes of 1982, offset by any increase in those contributions, as of the 1983-84 fiscal year, resulting from subsequent changes in employer contribution rates. The reduction shall be calculated as follows: (1) Determine the amount of employer contributions that would have been made in the 1983-84 fiscal year if the applicable Public Employees' Retirement System employer contribution rate in effect immediately prior to the enactment of Chapter 330 of the Statutes of 1982 were in effect during the 1983-84 fiscal year. (2) Subtract from the amount determined in paragraph (1) the greater of subparagraph (A) or (B): (A) The amount of employer contributions that would have been made in the 1983-84 fiscal year if the applicable Public Employees' Retirement System employer contribution rate in effect immediately after the enactment of Chapter 330 of the Statutes of 1982 were in effect during the 1983-84 fiscal year. (B) The actual amount of employer contributions made to the Public Employees' Retirement System in the 1983-84 fiscal year. (3) For purposes of this subdivision, employer contributions to the Public Employees' Retirement System for any of the following shall be excluded from the calculation specified above: (A) Positions supported totally by federal funds that were subject to supplanting restrictions. (B) Positions supported by funds received pursuant to Section 42243.6. (C) Positions supported, to the extent of employer contributions not exceeding twenty-five thousand dollars ($25,000) by any single educational agency, from a revenue source determined on the basis of equity to be properly excludable from the provisions of this subdivision by the Superintendent of Public Instruction with the approval of the Director of Finance. (4) For accounting purposes, the reduction made by this subdivision may be reflected as an expenditure from appropriate sources of revenue as directed by the Superintendent of Public Instruction. (h) The Superintendent of Public Instruction shall apportion to each school district the amount determined in this section less the sum of: (1) The district's property tax revenue received pursuant to Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of, Part 0.5 of Division 1 of the Revenue and Taxation Code. (2) The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code. (3) The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 of the Government Code. (4) Prior years taxes and taxes on the unsecured roll. (5) Fifty percent of the amount received pursuant to Section 41603. (6) The amount of motor vehicle license fees distributed pursuant to Section 11003.4 of the Revenue and Taxation Code. (7) The amount, if any, received pursuant to any provision of the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), except for any amount received pursuant to Section 33401 or 33676 of the Health and Safety Code that is used for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance, except for any amount received pursuant to Section 33492.15, 33607.5, or 33607.7 of the Health and Safety Code that is allocated exclusively for educational facilities. (i) This section shall become operative July 1, 1984. SEC. 1.5. Section 42238 of the Education Code is amended to read: 42238. (a) For the 1984-85 fiscal year and each fiscal year thereafter, the county superintendent of schools shall determine a revenue limit for each school district in the county pursuant to this section. (b) The base revenue limit for the current fiscal year shall be determined by adding to the base revenue limit for the prior fiscal year the following amounts: (1) The inflation adjustment specified in Section 42238.1. (2) For the 1985-86 and 1986-87 fiscal years only, the equalization adjustment specified in Section 42238.4. (3) For the 1985-86 fiscal year, the amount received per unit of average daily attendance in the 1984-85 fiscal year pursuant to Section 42238.7. (4) For the 1985-86, 1986-87, and 1987-88 fiscal years, the amount per unit of average daily attendance received in the prior fiscal year pursuant to Section 42238.8. (c) Except for districts subject to subdivision (d), the base revenue limit computed pursuant to subdivision (b) shall be multiplied by the district average daily attendance computed pursuant to Section 42238.5. (d) For districts for which the number of units of average daily attendance determined pursuant to Section 42238.5 is greater for the current fiscal year than for the 1982-83 fiscal year, compute the following amount, in lieu of the amount computed pursuant to subdivision (c): (1) Multiply the base revenue limit computed pursuant to subdivision (c) by the average daily attendance computed pursuant to Section 42238.5 for the 1982-83 fiscal year. (2) Multiply the lesser of the amount in subdivision (c) or 1.05 times the statewide average base revenue limit per unit of average daily attendance for districts of similar type for the current fiscal year by the difference between the average daily attendance computed pursuant to Section 42238.5 for the current and 1982-83 fiscal years. (3) Add the amounts in paragraphs (1) and (2). (e) The base revenue limit per unit of average daily attendance shall be the lesser of the following amounts: (1) The amount determined in subdivision (b). (2) The amount computed pursuant to Section 42238 for the prior fiscal year divided by the prior fiscal year revenue limit average daily attendance times the sum of 1.0 and twice the percentage increase in revenue limits computed pursuant to Section 42238.1 for the current fiscal year. (f) For districts electing to compute units of average daily attendance pursuant to subdivision (a) of Section 42238.5, the amount computed pursuant to Article 4 (commencing with Section 42280) shall be added to the amount computed in subdivision (c) or (d), as appropriate. (g) For the 1984-85 fiscal year only, the county superintendent shall reduce the total revenue limit computed in this section by the amount of the decreased employer contributions to the Public Employees' Retirement System resulting from enactment of Chapter 330 of the Statutes of 1982, offset by any increase in those contributions, as of the 1983-84 fiscal year, resulting from subsequent changes in employer contribution rates. The reduction shall be calculated as follows: (1) Determine the amount of employer contributions that would have been made in the 1983-84 fiscal year if the applicable Public Employees' Retirement System employer contribution rate in effect immediately prior to the enactment of Chapter 330 of the Statutes of 1982 were in effect during the 1983-84 fiscal year. (2) Subtract from the amount determined in paragraph (1) the greater of subparagraph (A) or (B): (A) The amount of employer contributions that would have been made in the 1983-84 fiscal year if the applicable Public Employees' Retirement System employer contribution rate in effect immediately after the enactment of Chapter 330 of the Statutes of 1982 were in effect during the 1983-84 fiscal year. (B) The actual amount of employer contributions made to the Public Employees' Retirement System in the 1983-84 fiscal year. (3) For purposes of this subdivision, employer contributions to the Public Employees' Retirement System for any of the following shall be excluded from the calculation specified above: (A) Positions supported totally by federal funds that were subject to supplanting restrictions. (B) Positions supported by funds received pursuant to Section 42243.6. (C) Positions supported, to the extent of employer contributions not exceeding twenty-five thousand dollars ($25,000) by any single educational agency, from a revenue source determined on the basis of equity to be properly excludable from the provisions of this subdivision by the Superintendent of Public Instruction with the approval of the Director of Finance. (4) For accounting purposes, the reduction made by this subdivision may be reflected as an expenditure from appropriate sources of revenue as directed by the Superintendent of Public Instruction. (h) The Superintendent of Public Instruction shall apportion to each school district the amount determined in this section less the sum of: (1) The district's property tax revenue received pursuant to Chapter 3 (commencing with Section 75) and Chapter 6 (commencing with Section 95) of, Part 0.5 of Division 1 of the Revenue and Taxation Code. (2) The amount, if any, received pursuant to Part 18.5 (commencing with Section 38101) of Division 2 of the Revenue and Taxation Code. (3) The amount, if any, received pursuant to Chapter 3 (commencing with Section 16140) of Part 1 of Division 4 of Title 2 of the Government Code. (4) Prior years taxes and taxes on the unsecured roll. (5) Fifty percent of the amount received pursuant to Section 41603. (6) The amount of motor vehicle license fees distributed pursuant to Section 11003.4 of the Revenue and Taxation Code. (7) The amount, if any, received pursuant to any provision of the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code), except for any amount received pursuant to Section 33401 or 33676 of the Health and Safety Code that is used for land acquisition, facility construction, reconstruction, or remodeling, or deferred maintenance, except for any amount received pursuant to Section 33492.15 of the Health and Safety Code that is allocated exclusively for educational facilities. (i) This section shall become operative July 1, 1984. SEC. 2. Section 84751 of the Education Code, as added by Chapter 66 of the Statutes of 1993, is amended to read: 84751. In calculating each community college district's revenue level for each fiscal year pursuant to subdivision (a) of Section 84750, the chancellor shall subtract, from the total revenues owed, all of the following: (a) The local property tax revenue specified by law for general operating support, exclusive of bond interest and redemption. (b) Ninety-eight percent of the fee revenues collected pursuant to Section 76300 and moneys received for fees defrayed pursuant to subdivisions (g) and (h) of that section. (c) Motor vehicle license fees received pursuant to Section 11003.4 of the Revenue and Taxation Code. (d) Timber yield tax revenue received pursuant to Section 38905 of the Revenue and Taxation Code. (e) Any amounts received pursuant to Section 33492.15, 33607.5, or 33607.7 of the Health and Safety Code that are allocated exclusively for educational facilities. SEC. 2.5. Section 84751 of the Education Code as added by Chapter 66 of the Statutes of 1993, is amended to read: 84751. In calculating each community college district's revenue level for each fiscal year pursuant to subdivision (a) of Section 84750, the chancellor shall subtract, from the total revenues owed, all of the following: (a) The local property tax revenue specified by law for general operating support, exclusive of bond interest and redemption. (b) Ninety-eight percent of the fee revenues collected pursuant to Section 76300 and moneys received for fees defrayed pursuant to subdivisions (g) and (h) of that section. (c) Motor vehicle license fees received pursuant to Section 11003.4 of the Revenue and Taxation Code. (d) Timber yield tax revenue received pursuant to Section 38905 of the Revenue and Taxation Code. (e) Any amounts received pursuant to Section 33492.15 of the Health and Safety Code that are allocated exclusively for educational facilities. SEC. 3. Section 33320.1 of the Health and Safety Code is amended to read: 33320.1. (a) "Project area" means, except as provided in Section 33320.2, 33320.3, 33320.4, or 33492.3, a predominantly urbanized area of a community which is a blighted area, the redevelopment of which is necessary to effectuate the public purposes declared in this part, and which is selected by the planning commission pursuant to Section 33322. (b) As used in this section, "predominantly urbanized" means that not less than 80 percent of the land in the project area: (1) Has been or is developed for urban uses; or (2) Is characterized by the conditions described in subdivision (a), (b), or (e) of Section 33032; or (3) Is an integral part of one or more areas developed for urban uses which are surrounded or substantially surrounded by parcels which have been or are developed for urban uses. Parcels separated by only an improved right-of-way shall be deemed adjacent for the purpose of this subdivision. (c) For the purposes of this section, a parcel of property as shown on the official maps of the county assessor is developed if that parcel is developed in a manner which is either consistent with zoning or is otherwise permitted under law. (d) The requirement that a project be predominantly urbanized shall apply only to a project area for which a final redevelopment plan is adopted on or after January 1, 1984, or to an area which is added to a project area by an amendment to a redevelopment plan, which amendment is adopted on or after January 1, 1984. SEC. 4. Chapter 4.5 (commencing with Section 33492) is added to Part 1 of Division 24 of the Health and Safety Code, to read: CHAPTER 4.5. MILITARY BASE CLOSURE REDEVELOPMENT AGENCIES Article 1. General Provisions 33492. With enactment of this chapter, it is the intent of the Legislature to provide a means of mitigating the economic and social degradation that is faced by communities the jurisdictions of which include military bases that have been ordered to be closed by the federal Base Closure Commission. 33492.1. The Legislature finds and declares that extraordinary measures must be taken to mitigate the effects of the federal government's efforts to reduce the number of military bases throughout the country. 33492.3. For any redevelopment project area formed pursuant to this chapter, the project area may include all, or any portion of, property within a military base that the federal Base Closure Commission has voted to close when that action has been sustained by the President and Congress of the United States, regardless of the percentage of urbanized land, as defined in Section 33320.1, within the military base. The project area may include territory outside the military base if inclusion of that territory is authorized by this chapter. 33492.5. (a) In any community in which a military base is located, the Base Closure Commission has voted to close that military base, and the action of the Base Closure Commission has been sustained by the President and Congress of the United States, a project area may be adopted pursuant to the following requirements: (1) If the project area is located entirely within the boundaries of a city, then the city redevelopment agency may adopt the redevelopment project area pursuant to this part as modified by this chapter. (2) If the project area is located entirely within the unincorporated area of a single county, then the county redevelopment agency may adopt the redevelopment project area pursuant to this part as modified by this chapter. (3) If the project area includes property within the jurisdictions of two or more cities, or two or more counties, or a city and a county, or any combination of the foregoing, then all of the cities and counties the jurisdictions of which include property within the boundaries of the military base and any other territory to be included within the redevelopment project area may enter into a joint powers agreement, an agreement entered into pursuant to Section 33210, or other appropriate agreement for the purpose of creating a redevelopment agency and adopting a project area pursuant to this part as modified by this chapter. (b) A redevelopment agency to which this chapter is applicable may adopt a project area either pursuant to this chapter or pursuant to other relevant provisions of this part. 33492.7. (a) Paragraph (11) of subdivision (d) of Section 33367 shall not apply to the territory within the military base for any redevelopment project area adopted pursuant to this chapter. (b) For any project area adopted pursuant to this chapter, Section 33492.11 may be used in lieu of Section 33031. 33492.9. Notwithstanding any other provision of law, in each county in which a redevelopment agency is formed, or a redevelopment plan is adopted, pursuant to this chapter, the county auditor shall certify to the Director of Finance the date of the final day of the first fiscal year in which one hundred thousand dollars ($100,000) or more of tax increment funds from the redevelopment project area adopted pursuant to this chapter are paid to the redevelopment agency pursuant to subdivision (d) of Section 33675. 33492.10. A blighted area is a military base in which the combination of conditions set forth in Section 33492.11 is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. 33492.11. (a) This subdivision describes physical conditions that cause blight: (1) Buildings in which it is unsafe or unhealthy for persons to live or work. These conditions can be caused by serious building code violations, dilapidation and deterioration, defective design or physical construction, faulty or inadequate infrastructure, or other similar factors. (2) Factors that prevent or substantially hinder the economically viable reuse or capacity of buildings or areas. This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking, or other similar factors that are unique to military bases. (3) Adjacent or nearby uses that are incompatible with each other and that prevent the economic development of those parcels or other portions of the project area. (4) The existence of subdivided lots of irregular form and shape and inadequate size for proper usefulness and development that are in multiple ownership. (b) This subdivision describes economic conditions that cause blight: (1) Depreciated or stagnant property values or impaired investments, including, but not necessarily limited to, those properties containing hazardous wastes that require the use of agency authority as specified in Article 12.5 (commencing with Section 33459). (2) Abnormally high business vacancies, abnormally low lease rates, high turnover rates, abandoned buildings, or excessive vacant lots within an area developed for urban use or used as a military base. (3) A lack of necessary commercial facilities that are normally found in neighborhoods, including grocery stores, drugstores, and banks and other lending institutions. (4) Residential overcrowding or an excess of bars, liquor stores, or other businesses that cater exclusively to adults, that has led to problems of public safety and welfare. (5) A high crime rate that constitutes a serious threat to the public safety and welfare. 33492.13. (a) A redevelopment plan, adopted pursuant to this chapter and containing the provisions set forth in Section 33670, shall contain all of the following limitations: (1) A limitation on the number of dollars of taxes which may be divided and allocated to the redevelopment agency pursuant thereto. Taxes shall not be divided and shall not be allocated to the redevelopment agency beyond this limitation, except by amendment of the redevelopment plan pursuant to Section 33354.6. (2) (A) The time limit on the establishing of loans, advances, and indebtedness to be paid with the proceeds of property taxes received pursuant to Section 33670 to finance in whole or in part the redevelopment project, which may not exceed 20 years from the date the county auditor certifies pursuant to Section 33492.9, except by amendment of the redevelopment plan as authorized by subparagraph (B). The loans, advances, or indebtedness may be repaid over a period of time longer than the time limit as provided in this section. No loans, advances, or indebtedness to be repaid from the allocation of taxes shall be established or incurred by the agency beyond this time limitation. (B) The time limitation established by subparagraph (A) may be extended only by amendment of the redevelopment plan after the agency finds, based on substantial evidence, that (i) substantial blight remains within the project area; (ii) this blight cannot be eliminated without the establishment of additional debt; and (iii) the elimination of blight cannot reasonably be accomplished by private enterprise acting alone or by the legislative body's use of financing alternatives other than tax increment financing. However, this amended time limitation may not exceed 30 years from the date the county auditor certifies pursuant to Section 33492.9. (3) A time limit, not to exceed 30 years from the date the county auditor certifies pursuant to Section 33492.9, on the effectiveness of the redevelopment plan. After the time limit on the effectiveness of the redevelopment plan, the agency shall have no authority to act pursuant to the redevelopment plan except to pay previously incurred indebtedness and enforce existing covenants or contracts. (4) A time limit, not to exceed 45 years from the date the county auditor certifies pursuant to Section 33492.9, to repay indebtedness with the proceeds of property taxes received pursuant to Section 33670. After the time limit established pursuant to this paragraph, an agency may not receive property taxes pursuant to Section 33670. (b) (1) A redevelopment plan, adopted pursuant to this chapter, that does not contain the provisions set forth in Section 33670 shall contain the limitations in paragraph (2). (2) A time limit, not to exceed 12 years from the date the county auditor certifies pursuant to Section 33492.9, for commencement of eminent domain proceedings to acquire property within the project area. This time limitation may be extended only by amendment of the redevelopment plan. 33492.15. Notwithstanding any other provision of law, all of the following shall occur: (a) Any redevelopment agency administering a redevelopment project area adopted pursuant to this chapter shall make the following apportionments to school districts and community college districts with territory located within that project area unless an alternative formula for determining the allocation to the school district or community college district is approved pursuant to other provisions of this chapter: (1) In the fifth fiscal year beginning after the date the county auditor certifies to the Director of Finance pursuant to Section 33492.9, 10 percent of that portion of taxes in excess of the amount identified in subdivision (a) of Section 33670 in the year of adoption of the redevelopment plan which are attributable to each school district and each community college district with territory in the project area shall be allocated to, and when collected shall be paid into, the fund of the school district or community college district. (2) Beginning in the sixth fiscal year after the date the county auditor certifies to the Director of Finance pursuant to Section 33492.9, the amount of taxes required to be allocated to each school district and to each community college district shall be increased by increments of 10 percent of the taxes in excess of the amount identified in subdivision (a) of Section 33670 in the year of adoption of the redevelopment plan which are attributable to each school district and each community college district with territory within the project area each successive year, so that in the 15th year following certification pursuant to Section 33492.9, 100 percent of the taxes in excess of the amount identified in subdivision (a) of Section 33670 in the year of adoption of the redevelopment plan which are attributable to each school district and each community college district with territory located within the project area shall be allocated to, and when collected shall be paid into, the fund of that school district or community college district. (3) "Taxes attributable to each school district" means the sum of the following two amounts: (A) The amount of property taxes which, based on the assessed value within the project area, would have been allocated to each school district if they were not allocated to the redevelopment agency. (B) An amount equal to the product of the amount determined pursuant to subparagraph (A) and the quotient of the amount in the county or counties in which the project area lies which is deposited in the Educational Revenue Augmentation Fund from cities, counties, and special districts, divided by the total property tax which is allocated directly to all schools or to the county office of education in the county or counties in which the project area lies. (4) The allocation of funds pursuant to this subdivision shall be made before there is a determination made regarding the amount to be allocated to schools in the affected counties from the Educational Revenue Augmentation Fund. (b) Once a mutually agreed-upon alternative agreement is reached, and affected school districts and community college districts have been provided for pursuant to this chapter, these affected school districts and affected community college districts shall not be considered "affected taxing entities" for purposes of Sections 33492.17, 33492.19, 33492.23, 33492.27, and 33492.29. (c) Prior to incurring any bonded indebtedness, any redevelopment agency administering a project area pursuant to this chapter may subordinate to the bonded debt the amount required to be paid to an affected school district or community college district pursuant to this section upon a finding, based upon substantial evidence, that the agency will have sufficient funds available to pay both the bonded debt payments and the payments required by this section. (d) It is the intent of the Legislature that, if there is an identified impaction relative to the redevelopment plan and an alternative formula is proposed pursuant to this section, then appropriate legislation shall be considered and enacted. (e) In the event the redevelopment agency receives two million dollars ($2,000,000) or more of tax increment funds in any one fiscal year during the period from the date certified to the Director of Finance pursuant to Section 33492.9 until the end of the fifth full fiscal year thereafter, in the following fiscal year the redevelopment agency shall commence making payments of tax increment funds to school districts and community college districts in accordance with the schedule set forth in subdivision (a). 33492.17. (a) For any project area formed pursuant to this chapter, the agency may pay to any taxing agency with territory located within a project area, other than the community which has adopted the project, any amounts of money which the agency has found are necessary and appropriate to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. The payments to a taxing agency in any single year shall not exceed the amount of property tax revenues which would have been received by that taxing agency if all the property tax revenues from the project area had been allocated to all the affected taxing agencies without regard to the division of taxes required by Section 33670, except that a greater payment may be established by agreement between the agency and one or more taxing agencies, except a school district, if the other taxing agencies agree to defer payments for one or more years in order to accomplish the purposes of the project at an earlier time than would otherwise be the case. The amount of any greater payments shall not exceed the amount of payment deferred. (b) The payments made pursuant to this section shall be approved by a resolution, adopted by the redevelopment agency, which shall contain findings, supported by substantial evidence, that the redevelopment project will cause or has caused a financial burden or detriment to the taxing agency and that the payments are necessary to alleviate the financial burden or detriment. 33492.19. Notwithstanding any other provision of law: (a) Any affected taxing entity may call for the creation of a fiscal review committee within 15 days after receipt of the preliminary report from the agency pursuant to Section 33344.5. The fiscal review committee shall be composed of one representative from each affected taxing entity, excluding a school district or community college district. (b) Within 15 days after receiving notification that a fiscal review committee has been created, and prior to sending a redevelopment plan to the fiscal review committee, the agency shall commence consultations with the fiscal review committee regarding the impact of the proposed redevelopment project upon the affected taxing entities. (c) (1) The purpose of the consultations commenced pursuant to this section shall be to identify the fiscal effects of the proposed redevelopment plan upon the affected taxing entities, to specify additional information, if any, needed to enable those fiscal effects to be identified and analyzed, and to suggest possible provisions in the redevelopment plan which would alleviate or eliminate a financial burden or detriment. (2) During consultations with the fiscal review committee and affected taxing entities, the agency shall provide all written information it possesses concerning all public or private development which is planned for or taking place in the project area, except records which disclose trade secrets or the financial condition of contractors or potential contractors with the agency. 33492.21. Notwithstanding any other provision of law: (a) In the event a fiscal review committee is created pursuant to Section 33492.19, the redevelopment agency shall send the redevelopment plan to the chairperson of the fiscal review committee. The county representative or chief administrative officer shall be the temporary chairperson of the fiscal review committee for the purpose of convening the fiscal review committee's first meeting. (b) The chairperson of the fiscal review committee shall convene the fiscal review committee with all due dispatch, and hold a hearing not less than 25, and not more than 40, days from the receipt of the plan. The hearing may be continued by the fiscal review committee but shall be completed within 15 days from the date of the initial hearing unless the agency and the fiscal review committee agree to an additional period of time. 33492.23. Notwithstanding any other provision of law: (a) In the event a fiscal review committee is created pursuant to Section 33492.19, the fiscal review committee shall analyze and report to the agency, within 30 days of the conclusion of the hearing held pursuant to Section 33492.21, on the fiscal impact of the redevelopment plan or the amendment to the redevelopment plan on each of the members of the fiscal review committee, including a determination whether the redevelopment plan or amendment will have either a beneficial effect or a financial burden or detriment upon one or more members of the fiscal review committee. (b) The analysis prepared pursuant to this section shall be based upon all of the following information: (1) The preliminary report prepared pursuant to Section 33344.5. (2) The redevelopment plan or amendment. (3) Information derived from the consultations convened between the agency and fiscal review committee pursuant to Section 33492.19. (4) Information derived from the hearing held by the fiscal review committee pursuant to Section 33492.21. (5) The report prepared pursuant to Section 33328. (6) Any additional information developed by the fiscal review committee. (c) If the report of the fiscal review committee concludes that the redevelopment plan will cause a financial burden or detriment upon one or more members of the fiscal review committee, the report shall specifically describe that fiscal burden or detriment and shall contain evidence supporting that conclusion. (d) If the report of the fiscal review committee concludes that the redevelopment plan will cause a financial burden or detriment upon one or more members of the fiscal review committee, the report may include recommended actions to be implemented by the agency which would alleviate or eliminate the financial burden or detriment, including, but not limited to, the following: (1) Amendments to the redevelopment plan that would: (A) Modify the total amount of tax increments to be received by the redevelopment agency. (B) Modify the duration of the redevelopment plan. (C) Modify the size of the project area. (D) Modify, in kind or number, specific projects then proposed to be undertaken by the agency. (E) Include specific actions or projects to be undertaken by the agency that would reduce or eliminate the detrimental fiscal effect upon the members of the fiscal review committee. (2) Payments by the agency to a member of the fiscal review committee authorized by Section 33492.25. 33492.25. Notwithstanding any other provision of law: (a) The agency may also pay to any taxing agency with territory located within a project area, other than the community which has adopted the project, any amounts of money which the agency has found are necessary and appropriate to alleviate any financial burden or detriment caused to any taxing agency by a redevelopment project. (b) The payments to a taxing agency made, in any single year, pursuant to this section, shall not exceed the amount of property tax revenues which would have been received by that taxing agency if all the property tax revenues from the project area had been allocated to all the affected taxing agencies without regard to the division of taxes required by Section 33670, except that a greater payment may be established by agreement between the agency and one or more taxing agencies, except a school district, if the other taxing agencies agree to defer payments for one or more years in order to accomplish the purposes of the project at an earlier time than would otherwise be the case. The amount of any greater payments shall not exceed the amount of payment deferred. (c) The payments made pursuant to this section shall be approved by a resolution, adopted by the redevelopment agency, which shall contain findings, supported by substantial evidence, that the redevelopment project will cause or has caused a financial burden or detriment to the taxing agency and that the payments are necessary to alleviate the financial burden or detriment. (d) The requirement that the agency may make payments to a taxing entity only to alleviate a financial burden or detriment, as defined in Section 33012, and only after approval by a resolution which contains specified findings, shall apply only to payments made by an agency pursuant to an agreement between an agency and a taxing entity which is executed by the agency on or after the effective date of amendments to this section enacted by the Statutes of 1984. 33492.27. For the purposes of this chapter, "affected taxing entity" means any governmental taxing agency that levied a property tax on all or any portion of the property located in the proposed project area in the fiscal year prior to submission of the plan to the committee. 33492.29. An ordinance adopting a redevelopment plan under this chapter shall include a finding that the effect of tax increment financing will not cause a significant financial burden or detriment on any taxing agency deriving revenues from a project area. This finding shall only be required when the project is financed in part or in whole from revenues derived from the allocation of taxes pursuant to Section 33670. Article 2. Castle Air Force Base Redevelopment Project Area 33492.50. (a) With the enactment of this article, it is the intent of the Legislature to provide precise and specific means to mitigate the very serious economic effects of the closure of Castle Air Force Base on surrounding communities. (b) The Legislature finds and declares all of the following: (1) The County of Merced, with a population of 180,000, is already in a very significantly depressed condition, with an unemployment rate exceeding 18 percent, extraordinarily high costs relating to the Aid for Dependent Children program, and low property tax revenues. (2) The closure of Castle Air Force Base will result in the elimination of over 6,000 jobs, which is one in every 20 jobs in the County of Merced and a payroll loss of $220,000,000. (3) The impact of the closure of Castle Air Force Base will fall in an area where 70 percent of public assistance recipients live within 10 miles of the base. (4) This act is the result of a specific agreement between the County of Merced and affected local cities to resolve the situation created by the closure of Castle Air Force Base. (5) The Legislature grants the temporary authorization for the Castle Joint Powers Redevelopment Agency to defer 50 percent of its Low and Moderate Income Housing Fund requirements for up to five years to allow the agency to receive a larger cash-flow to help the agency pay for its initial costs. The Legislature grants this authorization only in recognition of the unusual circumstances facing the agency. 33492.51. (a) Notwithstanding any other provision of law, there is hereby created the Castle Joint Powers Redevelopment Agency, which shall be composed of the City of Atwater, the City of Merced, and the County of Merced. (b) The Castle Joint Powers Redevelopment Agency shall have all the powers, authorities, and duties granted to it under Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code and this part, except as modified by Section 33320.66 for the exclusive purpose of establishing the Castle Air Force Base project area within the unincorporated territory of the County of Merced. 33492.53. (a) In addition to the powers of any agency, the Castle Joint Powers Redevelopment Agency shall also act as the legislative body and planning commission for all approvals and actions required and authorized by this part for the adoption and implementation of a redevelopment plan. However, all land use, planning and development decisions with regard to the land within the project area shall continue to be under the control and jurisdiction of each of the respective local legislative bodies or planning commissions, as applicable. (b) In adopting a redevelopment project area for the area within the unincorporated territory of the County of Merced contained within the Castle Air Force Base, the following shall apply, subject to the requirements of Section 33492.13: (1) The limitation on dollars of taxes which may be divided and allocated to the Castle Air Force Base project area shall be two hundred fifty million dollars ($250,000,000). (2) The limitation on the time by which the agency may commence eminent domain proceedings shall be 15 years. (c) The Castle Joint Powers Redevelopment Agency may amend the limitations enumerated in paragraph (1) of subdivision (b) pursuant to existing law. (d) The Castle Joint Powers Redevelopment Agency may defer up to 50 percent of its Low and Moderate Income Housing Fund requirements for the Castle Air Force Base project area for up to five years. The amount of the deferral shall be considered an indebtedness and shall be repaid to the Low and Moderate Income Housing Fund within eight years of the establishment of the Castle Air Force Base project area. If the indebtedness is not eliminated by the eighth year, the county auditor or controller shall withhold an amount equal to the indebtedness and deposit those moneys into a separate Low and Moderate Income Housing Fund for use by the Castle Joint Powers Redevelopment Agency under this section. (e) The agency shall comply with the requirements of Chapter 16 (commencing with Section 7260) of Division 4 of Title 1 of the Government Code. In addition, if any housing occupied by persons of very low, low, or moderate income who have resided in the housing for at least two years is destroyed by redevelopment agency activities, the displaced persons shall receive relocation benefits which enable those persons to lease or rent a comparable replacement dwelling for a period not to exceed 96 months. (f) (1) The agency shall comply with the requirements of Section 33413. (2) In addition, if any housing occupied by persons of very low, low, or moderate income is destroyed by redevelopment agency activities, the destroyed units shall be replaced with housing, of the same or greater size, which shall be affordable in direct proportion to the income levels of the persons or households displaced by the redevelopment agency activities. This housing shall be provided simultaneously with the development for which it was destroyed. (3) The requirements imposed by paragraph (2) of this subdivision shall not apply to any dormitory building located, as of the effective date of the act which adds this section, on Castle Air Force Base. (4) The requirements imposed by paragraph (2) of this subdivision shall not apply to any housing removed if the vacancy rate for low-income housing within the jurisdiction of the Castle Joint Powers Redevelopment Agency, as determined by the agency, is 6 percent or higher. (g) Notwithstanding Section 33320.65, the Castle Joint Powers Redevelopment Agency may establish a project area and adopt and amend a redevelopment plan, as modified by subdivision (a) and other provisions of this chapter, if all of the following conditions are met: (1) The Castle Joint Powers Redevelopment Agency makes a finding of benefit to the Castle Air Force Base project area, and the approval of the County of Merced, the City of Merced, and the City of Atwater is obtained. (2) The project area is entirely contained in two concentric and overlapping circles one of which whose center is directly in front of the main gate and has a radius of 4.75 miles. The second is centered at the intersection of Yosemite Avenue and G Street in the City of Merced with a radius of 6.5 miles. At no time shall the aggregate acreage of the project areas established pursuant to this section exceed 2 percent of either city or 1 percent of the unincorporated area of the circles. (3) The resolution adopting a survey area pursuant to Section 33310 shall be transmitted to all affected entities, including affected school districts, within 30 days of adoption. The planning commission, in formulating the preliminary plan pursuant to Section 33330, shall consult with all affected taxing entities. (h) The Castle Joint Powers Redevelopment Agency shall not adopt a redevelopment plan pursuant to this section until the City of Atwater adopts a housing element, pursuant to Section 65585 of the Government Code, that substantially complies with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. 33492.55. As used in this chapter, "fiscal year" means a year commencing on July 1 and ending on the next June 30. SEC. 5. Section 33670 of the Health and Safety Code is amended to read: 33670. Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in a redevelopment project each year by or for the benefit of the State of California, any city, county, city and county, district, or other public corporation (hereinafter sometimes called "taxing agencies") after the effective date of the ordinance approving the redevelopment plan, shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment project as shown upon the assessment roll used in connection with the taxation of that property by the taxing agency, last equalized prior to the effective date of the ordinance, shall be allocated to and when collected shall be paid to the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid (for the purpose of allocating taxes levied by or for any taxing agency or agencies which did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after that effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date); and (b) Except as provided in subdivision (e) or in Section 33492.15, that portion of the levied taxes each year in excess of that amount shall be allocated to and when collected shall be paid into a special fund of the redevelopment agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the redevelopment agency to finance or refinance, in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the respective taxing agencies as taxes on all other property are paid. (c) In any redevelopment project in which taxes have been divided pursuant to this section prior to 1968, located within any county with total assessed valuation subject to general property taxes for the 1967-68 fiscal year between two billion dollars ($2,000,000,000) and two billion one hundred million dollars ($2,100,000,000), if the total assessed valuation of taxable property within the redevelopment project for the 1967-68 fiscal year was reduced, the total sum of the assessed value of taxable property used as the basis for apportionment of taxes under subdivision (a) shall be reduced by 10 percent for the 1968-69 fiscal year and fiscal years thereafter. (d) For the purposes of this section, taxes shall not include taxes from the supplemental assessment roll levied pursuant to Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of the Revenue and Taxation Code for the 1983-84 fiscal year. (e) That portion of the taxes in excess of the amount identified in subdivision (a) which are attributable to a tax rate levied by a taxing agency for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that taxing agency. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the taxing agency on or after January 1, 1989. SEC. 6. The Legislature finds and declares that, because of the unique circumstances applicable to the closure of Castle Air Force Base in the County of Merced, and set forth in Section 33492.50 of the Health and Safety Code, a statute of general applicability cannot be enacted within the meaning of subdivision (b) of Section 16 of Article IV of the California Constitution, and the enactment of Article 2 (commencing with Section 33492.50) of Chapter 4.5 of Part 1 of Division 24 of the Health and Safety Code is therefore necessary. SEC. 7. Notwithstanding Section 17610 of the Government Code, 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. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. Notwithstanding Section 17580 of the Government Code, unless otherwise specified in this act, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution. However, as to any costs incurred by the County of Merced pursuant to this act, no reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because this act is in accordance with the request of a local agency or school district which desired legislative authority to carry out the program specified in this act. Notwithstanding Section 17580 of the Government Code, unless otherwise specified in this act, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution. SEC. 8. (a) Section 1 of this bill incorporates amendments to Section 42238 of the Education Code proposed by both this bill and AB 1290. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 1994, (2) each bill amends Section 42238 of the Education Code, and (3) this bill is enacted after AB 1290, in which case Section 1.5 of this bill shall not become operative. (b) Section 2 of this bill incorporates amendments to Section 84751 of the Education Code proposed by both this bill and AB 1290. It shall only become operative if (1) both bills are enacted and become effective on January 1, 1994, (2) each bill amends Section 84751 of the Education Code, and (3) this bill is enacted after AB 1290, in which case Section 2.5 of this bill shall not become operative.