California Assembly Bill AB1870 Introduced / Bill

 BILL NUMBER: AB 1870INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Norby FEBRUARY 12, 2010 An act to amend Section 33671 of the Health and Safety Code, relating to redevelopment. LEGISLATIVE COUNSEL'S DIGEST AB 1870, as introduced, Norby. Redevelopment: tax increment funds: payment of indebtedness. Existing law authorizes redevelopment agencies to pay the principal of, and interest on, indebtedness incurred to finance or refinance redevelopment, from a portion of property tax revenues diverted from other taxing agencies. The portion of taxes diverted is the amount attributable to increases in assessed valuation of property in the redevelopment project area subsequent to establishment thereof. This method of financing is commonly known as "tax increment" financing and is specifically authorized by Section 16 of Article XVI of the California Constitution. Existing law also authorizes a redevelopment agency, in any redevelopment plan or in the proceedings for the advance of moneys or the making of loans or the incurring of any indebtedness, to finance or refinance, in whole or in part, a redevelopment project to irrevocably pledge its tax increment revenues for the payment of the principal of, and interest on, these loans, advances, or other indebtedness. This bill would make technical, nonsubstantive changes in those provisions that authorize a redevelopment agency to pledge its tax increment revenues for the payment on loans, advances, or other indebtedness. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 33671 of the Health and Safety Code is amended to read: 33671.  In any   A redevelopment agency may, in a  redevelopment plan or in the proceedings for the advance of moneys,  or   the  making of loans, or the incurring of any indebtedness  (whether   , whether  funded, refunded, assumed, or  otherwise) by the redevelopment agency   otherwise,  to finance or refinance, in whole or in part, the redevelopment project,  irrevocably pledge  the portion of taxes  mentioned   specified  in subdivision (b) of Section 33670  may be irrevocably pledged  for the payment of the principal of and interest on  such   these  loans, advances, or  other  indebtedness.