California Senate Bill SB659 Amended / Bill

 BILL NUMBER: SB 659AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 13, 2012 AMENDED IN SENATE MAY 11, 2011 AMENDED IN SENATE MARCH 24, 2011 INTRODUCED BY  Senator   Hernandez   Senators   Padilla   and Rubio   (   Principal coauthor:   Senator   Hernandez   )   (   Coauthor:   Senator   Negrete McLeod  )   (   Coauthors:   Assembly Members   Ma,   Perea,   and Solorio   )  FEBRUARY 18, 2011  An act to amend Section 507 of, and to add Section 301.5 to, the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), relating to the San Gabriel Basin Water Quality Authority.   An act to amend Sections 34170, 34172, 34173, 34175, 34177, 34178, 34179, 34182, 34183, 34185, and 34187 of, to add Section 34189.5 to, and to repeal Sections 34178.7, 34188.8, and 34191 of, the Health and Safety Code, and to amend Section 97.401 of the Revenue and Taxation Code, relating to community redevelopment.  LEGISLATIVE COUNSEL'S DIGEST SB 659, as amended,  Hernandez   Padilla  .  San Gabriel Basin Water Quality Authority: board members.   Community redevelopment.   Existing law suspends various activities of redevelopment agencies and prohibits the agencies from incurring indebtedness for a specified period. Existing law also dissolves redevelopment agencies and community development agencies, as of October 1, 2011, and designates successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, repay enforceable obligations, as defined, and to remit unencumbered balances of redevelopment agency funds, including housing funds, to the county auditor-controller for distribution to taxing entities. Existing law imposes various requirements on successor agencies and subjects successor agency actions to the review of oversight boards.   In the case of California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court ruled that the dissolution of redevelopment agencies and community development agencies shall take effect on February 1, 2012, or 4 months after the effective date or the deadline for performance of an obligation, except as specified.   This bill would instead provide that dissolution of redevelopment agencies and community development agencies shall take effect on April 15, 2012, and as otherwise specified. Other specified provisions would become effective on May 1, 2012, or require performance of certain actions on or before July 1, 2012.   The San Gabriel Basin Water Quality Authority Act authorizes the San Gabriel Basin Water Quality Authority to plan, finance, and implement groundwater remediation activities, as prescribed. The act requires the authority to be governed by a board composed of 7 members, consisting of 3 members appointed by the San Gabriel Valley Municipal Water District, the Upper San Gabriel Valley Municipal Water District, and the Three Valleys Municipal Water District; one member elected by specified cities with pumping rights within the San Gabriel Basin; one member elected by specified cities without pumping rights within the San Gabriel Basin; and 2 producer members appointed by the San Gabriel Valley Water Association. The act prescribes 4-year terms of office for the board members. The act also provides for the appointment or election of alternates by each of those entities.   This bill would authorize each of those entities appointing or electing a board member or alternate, by a majority vote, to remove the board member or alternate without cause and at any time prior to the expiration of the board member's or alternate's term of office, and to appoint or elect another person as the member or alternate to serve for the remaining term of the office, as specified.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares all of the following:   (a) The Legislature's sole objective in enacting this act is to temporarily delay the dissolution of redevelopment agencies in order to provide the opportunity to address significant legal, financial, and practical issues related to the dissolution of redevelopment agencies that cannot be addressed once the dissolution occurs.   (b) In enacting this act, the Legislature hereby intends to codify the California Supreme Court's December 29, 2011, holding in California Redevelopment Association v. Matosantos, Case No. S194861, while temporarily extending the timeframe for implementing Section 7 of Chapter 5 of the First Extraordinary Session of the Statutes of 2011.   (c) This act shall not be construed as permitting any redevelopment agency to incur new or expand existing monetary, legal, or contractual obligations, institute any condemnation proceedings, or issue any additional bonds, notes, or other indebtedness between the date of the California Supreme Court's holding in California Redevelopment Association v. Matosantos, Case No. S194861, and April 15, 2012.   SEC. 2.   Section 34170 of the   Health and Safety Code   is amended to read:  34170. (a) Unless otherwise specified, all provisions of this part shall become operative on  October 1, 2011.   April 15, 2012. The operative date of this part, and any amendments thereto, shall have no effect on the effective date of Chapter 5 of the First Extraordinary Session of the Statutes of 2011, or the operative date of Part 1.8 of Division 24.  (b) If any provision of this part or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this part which can be given effect without the invalid provision or application, and to this end, the provisions of this part are severable.  SEC. 3.   Section 34172 of the   Health and Safety Code   is amended to read:  34172. (a) (1) All redevelopment agencies and redevelopment agency components of community development agencies created under Part 1 (commencing with Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with Section 34050), and Part 1.7 (commencing with Section 34100)  that were   shall remain  in existence  on   until  the  effective   operative  date of this part  and  are hereby dissolved and shall no longer exist as a public body, corporate or politic  effective April 15, 2012  . Nothing in this part dissolves or otherwise affects the authority of a community redevelopment commission, other than in its authority to act as a redevelopment agency, in its capacity as a housing authority or for any other community development purpose of the jurisdiction in which it operates. For those other nonredevelopment purposes, the community development commission derives its authority solely from federal or local laws, or from state laws other than the Community Redevelopment Law (Part 1 (commencing with Section 33000)). (2) A community in which an agency  has been   will be  dissolved under this section may not create a new agency pursuant to Part 1 (commencing with Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with Section 34050), or Part 1.7 (commencing with Section 34100). However, a community in which the agency has been dissolved and the successor entity has paid off all of the former agency's enforceable obligations may create a new agency pursuant to Part 1 (commencing with Section 33000), Part 1.5 (commencing with Section 34000), Part 1.6 (commencing with Section 34050), or Part 1.7 (commencing with Section 34100), subject to the tax increment provisions contained in Chapter 3.5 (commencing with Section 34194.5) of Part 1.9 (commencing with Section 34192). (b)  All   Except   as expressly provided in Section 34169, all  authority to transact business or exercise powers previously granted under the Community Redevelopment Law (Part 1 (commencing with Section 33000) is hereby withdrawn from the former redevelopment agencies  effective October 1, 2011  . (c) Solely for purposes of Section 16 of Article XVI of the California Constitution, the Redevelopment Property Tax Trust Fund shall be deemed to be a special fund of the  dissolved  redevelopment agency  that will be dissolved  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 projects of each redevelopment agency dissolved pursuant to this part. (d) Revenues equivalent to those that would have been allocated pursuant to subdivision (b) of Section 16 of Article XVI of the California Constitution shall be allocated to the Redevelopment Property Tax Trust Fund of each successor agency for making payments on the principal of and interest on loans, and moneys advanced to or indebtedness incurred by the dissolved redevelopment agencies. Amounts in excess of those necessary to pay obligations of the former redevelopment agency shall be deemed to be property tax revenues within the meaning of subdivision (a) of Section 1 of Article XIII A of the California Constitution.  SEC. 4.   Section 34173 of the   Health and Safety Code   is amended to read:  34173. (a) Successor agencies, as defined in this part, are hereby designated as successor entities to the former redevelopment agencies. (b) Except for those provisions of the Community Redevelopment Law that are repealed, restricted, or revised pursuant to the act adding this part, all authority, rights, powers, duties, and obligations previously vested with the former redevelopment agencies, under the Community Redevelopment Law, are hereby vested in the successor agencies. (c) (1) Where the redevelopment agency was in the form of a joint powers authority, and where the joint powers agreement governing the formation of the joint powers authority addresses the allocation of assets and liabilities upon dissolution of the joint powers authority, then each of the entities that created the former redevelopment agency may be a successor agency within the meaning of this part and each shall have a share of assets and liabilities based on the provisions of the joint powers agreement. (2) Where the redevelopment agency was in the form of a joint powers authority, and where the joint powers agreement governing the formation of the joint powers authority does not address the allocation of assets and liabilities upon dissolution of the joint powers authority, then each of the entities that created the former redevelopment agency may be a successor agency within the meaning of this part, a proportionate share of the assets and liabilities shall be based on the assessed value in the project areas within each entity's jurisdiction, as determined by the county assessor, in its jurisdiction as compared to the assessed value of land within the boundaries of the project areas of the former redevelopment agency. (d) (1) A city, county, city and county, or the entities forming the joint powers authority that authorized the creation of each redevelopment agency may elect not to serve as a successor agency under this part. A city, county, city and county, or any member of a joint powers authority that elects not to serve as a successor agency under this part must file a copy of a duly authorized resolution of its governing board to that effect with the county auditor-controller no later than  one month prior to the effective date of this part.   January 13, 2012. Any city, county, city and county, or any member of a joint powers authority that elects not to serve as a successor agency may seek   reconsideration of its decision not to serve as a successor agency by submitting a written petition for reconsideration to the Governor on or before February 1   5, 2012. The Governor shall possess the sole authority to grant a petition for reconsideration. If the Governor grants a petition for reconsideration, the petitioner shall serve as a successor agency notwithstanding its prior election declining to serve as a successor agency.  (2) The determination of the first local agency that elects to become the successor agency shall be made by the county auditor-controller based on the earliest receipt by the county auditor-controller of a copy of a duly adopted resolution of the local agency's governing board authorizing such an election. As used in this section, "local agency" means any city, county, city and county, or special district in the county of the former redevelopment agency. (3) If no local agency elects to serve as a successor agency for a dissolved redevelopment agency, a public body, referred to herein as a "designated local authority" shall be immediately formed, pursuant to this part, in the county and shall be vested with all the powers and duties of a successor agency as described in this part. The Governor shall appoint three residents of the county to serve as the governing board of the authority. The designated local authority shall serve as successor agency until a local agency elects to become the successor agency in accordance with this section. (e) The liability of any successor agency, acting pursuant to the powers granted under the act adding this part, shall be limited to the extent of the total sum of property tax revenues it receives pursuant to this part and the value of assets transferred to it as a successor agency for a dissolved redevelopment agency.  SEC. 5.   Section 34175 of the   Health and Safety Code   is amended to read:  34175. (a) It is the intent of this part that pledges of revenues associated with enforceable obligations of the former redevelopment agencies are to be honored. It is intended that the cessation of any redevelopment agency shall not affect either the pledge, the legal existence of that pledge, or the stream of revenues available to meet the requirements of the pledge. (b) All assets, properties, contracts, leases, books and records, buildings, and equipment of the former redevelopment agency are transferred on  October 1, 2011   A   pril 15, 2012  , to the control of the successor agency, for administration pursuant to the provisions of this part. This includes all cash or cash equivalents and amounts owed to the redevelopment agency as of  October 1, 2011   April 15, 2012  .  SEC. 6.   Section 34177 of the   Health and Safety Code   is amended to read:  34177. Successor agencies are required to do all of the following: (a) Continue to make payments due for enforceable obligations. (1) On and after  October 1, 2011   April 15, 2012 , and until a Recognized Obligation Payment Schedule becomes operative, only payments required pursuant to an enforceable obligations payment schedule shall be made. The initial enforceable obligation payment schedule shall be the last schedule adopted by the redevelopment agency under Section 34169. However, payments associated with obligations excluded from the definition of enforceable obligations by paragraph (2) of subdivision (e) of Section 34171 shall be excluded from the enforceable obligations payment schedule and be removed from the last schedule adopted by the redevelopment agency under Section 34169 prior to the successor agency adopting it as its enforceable obligations payment schedule pursuant to this subdivision. The enforceable obligation payment schedule may be amended by the successor agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board has sufficient members to form a quorum. (2) The Department of Finance and the Controller shall each have the authority to require any documents associated with the enforceable obligations to be provided to them in a manner of their choosing. Any taxing entity, the department, and the Controller shall each have standing to file a judicial action to prevent a violation under this part and to obtain injunctive or other appropriate relief. (3) Commencing on  January   May  1, 2012,  or the date on which a Recognized Obligation Payment Schedule is deemed valid pursuant to paragraph (2) of subdivision (l), whichever is later,  only those payments listed in the Recognized Obligation Payment Schedule may be made by the successor agency from the funds specified in the Recognized Obligation Payment Schedule. In addition, commencing  January   May  1, 2012, the Recognized Obligation Payment Schedule shall supersede the Statement of Indebtedness, which shall no longer be prepared nor have any effect under the Community Redevelopment Law. (4) Nothing in the act adding this part is to be construed as preventing a successor agency, with the prior approval of the oversight board, as described in Section 34179, from making payments for enforceable obligations from sources other than those listed in the Recognized Obligation Payment Schedule. (5) From  October 1, 2011   April 15, 2012  , to July 1, 2012,  inclusive,  a successor agency shall have no authority and is hereby prohibited from accelerating payment or making any lump-sum payments that are intended to prepay loans unless such accelerated repayments were required prior to the effective date of this part. (b) Maintain reserves in the amount required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds. (c) Perform obligations required pursuant to any enforceable obligation. (d) Remit unencumbered balances of redevelopment agency funds to the county auditor-controller for distribution to the taxing entities, including, but not limited to, the unencumbered balance of the Low and Moderate Income Housing Fund of a former redevelopment agency. In making the distribution, the county auditor-controller shall utilize the same methodology for allocation and distribution of property tax revenues provided in Section 34188. (e) Dispose of assets and properties of the former redevelopment agency as directed by the oversight board; provided, however, that the oversight board may instead direct the successor agency to transfer ownership of certain assets pursuant to subdivision (a) of Section 34181. The disposal is to be done expeditiously and in a manner aimed at maximizing value. Proceeds from asset sales and related funds that are no longer needed for approved development projects or to otherwise wind down the affairs of the agency, each as determined by the oversight board, shall be transferred to the county auditor-controller for distribution as property tax proceeds under Section 34188. (f) Enforce all former redevelopment agency rights for the benefit of the taxing entities, including, but not limited to, continuing to collect loans, rents, and other revenues that were due to the redevelopment agency. (g) Effectuate transfer of housing functions and assets to the appropriate entity designated pursuant to Section 34176. (h) Expeditiously wind down the affairs of the redevelopment agency pursuant to the provisions of this part and in accordance with the direction of the oversight board. (i) Continue to oversee development of properties until the contracted work has been completed or the contractual obligations of the former redevelopment agency can be transferred to other parties. Bond proceeds shall be used for the purposes for which bonds were sold unless the purposes can no longer be achieved, in which case, the proceeds may be used to defease the bonds. (j) Prepare a proposed administrative budget and submit it to the oversight board for its approval. The proposed administrative budget shall include all of the following: (1) Estimated amounts for successor agency administrative costs for the upcoming six-month fiscal period. (2) Proposed sources of payment for the costs identified in paragraph (1). (3) Proposals for arrangements for administrative and operations services provided by a city, county, city and county, or other entity. (k) Provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor-controller for each six-month fiscal period. (l) (1) Before each six-month fiscal period, prepare a Recognized Obligation Payment Schedule in accordance with the requirements of this paragraph. For each recognized obligation, the Recognized Obligation Payment Schedule shall identify one or more of the following sources of payment: (A) Low and Moderate Income Housing Fund. (B) Bond proceeds. (C) Reserve balances. (D) Administrative cost allowance. (E) The Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation or by the provisions of this part. (F) Other revenue sources, including rents, concessions, asset sale proceeds, interest earnings, and any other revenues derived from the former redevelopment agency, as approved by the oversight board in accordance with this part. (2) A Recognized Obligation Payment Schedule shall not be deemed valid unless all of the following conditions have been met: (A) A draft Recognized Obligation Payment Schedule is prepared by the successor agency for the enforceable obligations of the former redevelopment agency by  November 1, 2011   May 1, 2012  . From  October 1, 2011   April 15, 2012  , to July 1, 2012,  inclusive,  the initial draft of that schedule shall project the dates and amounts of scheduled payments for each enforceable obligation for the remainder of the time period during which the redevelopment agency would have been authorized to obligate property tax increment had such a redevelopment agency not been dissolved, and shall be reviewed and certified, as to its accuracy, by an external auditor designated pursuant to Section 34182. (B) The certified Recognized Obligation Payment Schedule is submitted to and duly approved by the oversight board. (C) A copy of the approved Recognized Obligation Payment Schedule is submitted to the county auditor-controller and both the Controller' s office and the Department of Finance and be posted on the successor agency's Internet Web site. (3) The Recognized Obligation Payment Schedule shall be forward looking to the next six months. The first Recognized Obligation Payment Schedule shall be submitted to the Controller's office and the Department of Finance by  December 15, 2011   May 15, 2012  , for the period of  January   June  1, 2012, to June 30, 2012, inclusive.  Former redevelopment   Redevelopment  agency enforceable obligation payments due, and reasonable or necessary administrative costs due or incurred, prior to  January 1   April 15  , 2012, shall be made from property tax revenues received in the spring of 2011 property tax distribution,  from property tax revenues received pursuant to Section 34183,  and from other revenues and balances transferred to the successor agency.  SEC. 7.   Section 34178 of the   Health and Safety Code  is amended to read:  34178. (a) Commencing on  the operative date of this part   October 1, 2011  , agreements, contracts, or arrangements between the city or county, or city and county that created the redevelopment agency and the redevelopment agency are invalid and shall not be binding on the successor agency; provided, however, that a successor entity wishing to enter or reenter into agreements with the city, county, or city and county that formed the redevelopment agency that it is succeeding may do so upon obtaining the approval of its oversight board. (b) Notwithstanding subdivision (a), any of the following agreements are not invalid and may bind the successor agency: (1) A duly authorized written agreement entered into at the time of issuance, but in no event later than December 31, 2010, of indebtedness obligations, and solely for the purpose of securing or repaying those indebtedness obligations. (2) A written agreement between a redevelopment agency and the city, county, or city and county that created it that provided loans or other startup funds for the redevelopment agency that were entered into within two years of the formation of the redevelopment agency. (3) A joint exercise of powers agreement in which the redevelopment agency is a member of the joint powers authority. However, upon assignment to the successor agency by operation of the act adding this part, the successor agency's rights, duties, and performance obligations under that joint exercise of powers agreement shall be limited by the constraints imposed on successor agencies by the act adding this part.  SEC. 8.   Section 34178.7 of the   Health and Safety Code   is repealed.   34178.7. For purposes of this chapter with regard to a redevelopment agency that becomes subject to this part pursuant to Section 34195, only references to "October 1, 2011," and to the "operative date of this part" shall be modified in the manner described in Section 34191. All other dates shall be modified only as necessary to reflect the appropriate fiscal year or portion of a fiscal year.   SEC. 9.   Section 34179 of the   Health and Safety Code   is amended to read:  34179. (a) Each successor agency shall have an oversight board composed of seven members. The members shall elect one of their members as the chairperson and shall report the name of the chairperson and other members to the Department of Finance on or before January   May  1, 2012. Members shall be selected as follows: (1) One member appointed by the county board of supervisors. (2) One member appointed by the mayor for the city that formed the redevelopment agency. (3) One member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is of the type of special district that is eligible to receive property tax revenues pursuant to Section 34188. (4) One member appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education. (5) One member appointed by the Chancellor of the California Community Colleges to represent community college districts in the county. (6) One member of the public appointed by the county board of supervisors. (7) One member representing the employees of the former redevelopment agency appointed by the mayor or chair of the board of supervisors, as the case may be, from the recognized employee organization representing the largest number of former redevelopment agency employees employed by the successor agency at that time. (8) If the county or a joint powers agency formed the redevelopment agency, then the largest city by acreage in the territorial jurisdiction of the former redevelopment agency may select one member. If there are no cities with territory in a project area of the redevelopment agency, the county superintendent of education may appoint an additional member to represent the public. (9) If there are no special districts of the type that are eligible to receive property tax pursuant to Section 34188, within the territorial jurisdiction of the former redevelopment agency, then the county may appoint one member to represent the public. (10) Where a redevelopment agency was formed by an entity that is both a charter city and a county, the oversight board shall be composed of seven members selected as follows: three members appointed by the mayor of the city, where such appointment is subject to confirmation by the county board of supervisors, one member appointed by the largest special district, by property tax share, with territory in the territorial jurisdiction of the former redevelopment agency, which is the type of special district that is eligible to receive property tax revenues pursuant to Section 34188, one member appointed by the county superintendent of education to represent schools, one member appointed by the Chancellor of the California Community Colleges to represent community college districts, and one member representing employees of the former redevelopment agency appointed by the mayor of the city where such an appointment is subject to confirmation by the county board of supervisors, to represent the largest number of former redevelopment agency employees employed by the successor agency at that time. (b) The Governor may appoint individuals to fill any oversight board member position described in subdivision (a) that has not been filled by  January   May  15, 2012, or any member position that remains vacant for more than 60 days. (c) The oversight board may direct the staff of the successor agency to perform work in furtherance of the oversight board's duties and responsibilities under this part. The successor agency shall pay for all of the costs of meetings of the oversight board and may include such costs in its administrative budget. Oversight board members shall serve without compensation or reimbursement for expenses. (d) Oversight board members shall have personal immunity from suit for their actions taken within the scope of their responsibilities as oversight board members. (e) A majority of the total membership of the oversight board shall constitute a quorum for the transaction of business. A majority vote of the total membership of the oversight board is required for the oversight board to take action. The oversight board shall be deemed to be a local entity for purposes of the Ralph M. Brown Act, the California Public Records Act, and the Political Reform Act of 1974. (f) All notices required by law for proposed oversight board actions shall also be posted on the successor agency's Internet Web site or the oversight board's Internet Web site. (g) Each member of an oversight board shall serve at the pleasure of the entity that appointed such member. (h) The Department of Finance may review an oversight board action taken pursuant to the act adding this part. As such, all oversight board actions shall not be effective for three business days, pending a request for review by the department. Each oversight board shall designate an official to whom the department may make such requests and who shall provide the department with the telephone number and e-mail contact information for the purpose of communicating with the department pursuant to this subdivision. In the event that the department requests a review of a given oversight board action, it shall have 10 days from the date of its request to approve the oversight board action or return it to the oversight board for reconsideration and such oversight board action shall not be effective until approved by the department. In the event that the department returns the oversight board action to the oversight board for reconsideration, the oversight board shall resubmit the modified action for department approval and the modified oversight board action shall not become effective until approved by the department. (i) Oversight boards shall have fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188. Further, the provisions of Division 4 (commencing with Section 1000) of the Government Code shall apply to oversight boards. Notwithstanding Section 1099 of the Government Code, or any other law, any individual may simultaneously be appointed to up to five oversight boards and may hold an office in a city, county, city and county, special district, school district, or community college district. (j) Commencing on and after July 1, 2016, in each county where more than one oversight board was created by operation of the act adding this part, there shall be only one oversight board appointed as follows: (1) One member may be appointed by the county board of supervisors. (2) One member may be appointed by the city selection committee established pursuant to Section 50270 of the Government Code. In a city and county, the mayor may appoint one member. (3) One member may be appointed by the independent special district selection committee established pursuant to Section 56332 of the Government Code, for the types of special districts that are eligible to receive property tax revenues pursuant to Section 34188. (4) One member may be appointed by the county superintendent of education to represent schools if the superintendent is elected. If the county superintendent of education is appointed, then the appointment made pursuant to this paragraph shall be made by the county board of education. (5) One member may be appointed by the Chancellor of the California Community Colleges to represent community college districts in the county. (6) One member of the public may be appointed by the county board of supervisors. (7) One member may be appointed by the recognized employee organization representing the largest number of successor agency employees in the county. (k) The Governor may appoint individuals to fill any oversight board member position described in subdivision (j) that has not been filled by July 15, 2016, or any member position that remains vacant for more than 60 days. (l) Commencing on and after July 1, 2016, in each county where only one oversight board was created by operation of the act adding this part, then there will be no change to the composition of that oversight board as a result of the operation of subdivision (b). (m) Any oversight board for a given successor agency shall cease to exist when all of the indebtedness of the dissolved redevelopment agency has been repaid.  SEC. 10.   Section 34182 of the   Health and Safety Code  is amended to read:  34182. (a) (1) The county auditor-controller shall conduct or cause to be conducted an agreed-upon procedures audit of each redevelopment agency in the county that is subject to this part, to be completed by  March   July  1, 2012. (2) The purpose of the audits shall be to establish each redevelopment agency's assets and liabilities, to document and determine each redevelopment agency's passthrough payment obligations to other taxing agencies, and to document and determine both the amount and the terms of any indebtedness incurred by the redevelopment agency and certify the initial Recognized Obligation Payment Schedule. (3) The county auditor-controller may charge the Redevelopment Property Tax Trust Fund for any costs incurred by the county auditor-controller pursuant to this part. (b) By  March 15   July 1  , 2012, the county auditor-controller shall provide the Controller's office a copy of all audits performed pursuant to this section. The county auditor-controller shall maintain a copy of all documentation and working papers for use by the Controller. (c) (1) The county auditor-controller shall determine the amount of property taxes that would have been allocated to each redevelopment agency in the county had the redevelopment agency not been dissolved pursuant to the operation of the act adding this part. These amounts are deemed property tax revenues within the meaning of subdivision (a) of Section 1 of Article XIII A of the California Constitution and are available for allocation and distribution in accordance with the provisions of the act adding this part. The county auditor-controller shall calculate the property tax revenues using current assessed values on the last equalized roll on August 20, pursuant to Section 2052 of the Revenue and Taxation Code, and pursuant to statutory formulas or contractual agreements with other taxing agencies, as of the effective date of this section, and shall deposit that amount in the Redevelopment Property Tax Trust Fund. (2) Each county auditor-controller shall administer the Redevelopment Property Tax Trust Fund for the benefit of the holders of former redevelopment agency enforceable obligations and the taxing entities that receive passthrough payments and distributions of property taxes pursuant to this part. (3) In connection with the allocation and distribution by the county auditor-controller of property tax revenues deposited in the Redevelopment Property Tax Trust Fund, in compliance with this part, the county auditor-controller shall prepare estimates of amounts to be allocated and distributed, and provide those estimates to both the entities receiving the distributions and the Department of Finance, no later than November 1 and May 1 of each year. (4) Each county auditor-controller shall disburse proceeds of asset sales or reserve balances, which have been received from the successor entities pursuant to Sections 34177 and 34187, to the taxing entities. In making such a distribution, the county auditor-controller shall utilize the same methodology for allocation and distribution of property tax revenues provided in Section 34188. (d) By October 1, 2012, the county auditor-controller shall report the following information to the Controller's office and the Director of Finance: (1) The sums of property tax revenues remitted to the Redevelopment Property Tax Trust Fund related to each former redevelopment agency. (2) The sums of property tax revenues remitted to each agency under paragraph (1) of subdivision (a) of Section 34183. (3) The sums of property tax revenues remitted to each successor agency pursuant to paragraph (2) of subdivision (a) of Section 34183. (4) The sums of property tax revenues paid to each successor agency pursuant to paragraph (3) of subdivision (a) of Section 34183. (5) The sums paid to each city, county, and special district, and the total amount allocated for schools pursuant to paragraph (4) of subdivision (a) of Section 34183. (6) Any amounts deducted from other distributions pursuant to subdivision (b) of Section 34183. (e) A county auditor-controller may charge the Redevelopment Property Tax Trust Fund for the costs of administering the provisions of this part. (f) The Controller may audit and review any county auditor-controller action taken pursuant to the act adding this part. As such, all county auditor-controller actions shall not be effective for three business days, pending a request for review by the Controller. In the event that the Controller requests a review of a given county auditor-controller action, he or she shall have 10 days from the date of his or her request to approve the county auditor-controller's action or return it to the county auditor-controller for reconsideration and such county auditor-controller action shall not be effective until approved by the Controller. In the event that the Controller returns the county auditor-controller's action to the county auditor-controller for reconsideration, the county auditor-controller must resubmit the modified action for Controller approval and such modified county auditor-controller action shall not become effective until approved by the Controller.  SEC. 11.   Section 34183 of the   Health and Safety Code   is amended to read:  34183. (a) Notwithstanding any other law, from  October 1, 2011   April 15, 2012  , to July 1, 2012,  inclusive,  and for each fiscal year thereafter, the county auditor-controller shall, after deducting administrative costs allowed under Section 34182 and Section 95.3 of the Revenue and Taxation Code, allocate moneys in each Redevelopment Property Tax Trust Fund as follows: (1) Subject to any prior deductions required by subdivision (b), first, the county auditor-controller shall remit from the Redevelopment Property Tax Trust Fund to each local agency and school entity an amount of property tax revenues in an amount equal to that which would have been received under Section 33401, 33492.140, 33607, 33607.5, 33607.7, or 33676, as those sections read on January 1, 2011, or pursuant to any passthrough agreement between a redevelopment agency and a taxing jurisdiction that was entered into prior to January 1, 1994, that would be in force during that fiscal year, had the redevelopment agency existed at that time. The amount of the payments made pursuant to this paragraph shall be calculated solely on the basis of passthrough payment obligations, existing prior to the effective date of this part and continuing as obligations of successor entities, shall occur no later than  January 16, 2012, and no later than  June 1, 2012, and each January 16 and June 1 thereafter. Notwithstanding subdivision (e) of Section 33670, that portion of the taxes in excess of the amount identified in subdivision (a) of Section 33670, 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. (2) Second, on  January 16, 2012, and June 1, 2012,  for the period beginning April 15, 2012, and ending December 31, 2012,  and each January 16 and June 1 thereafter, to each successor agency for payments listed in its Recognized Obligation Payment Schedule for the six-month fiscal period beginning  January 1, 2012, or July 1, 2012, and  each January 16 and June 1  thereafter  , in the following order of priority: (A) Debt service payments scheduled to be made for tax allocation bonds. (B) Payments scheduled to be made on revenue bonds, but only to the extent the revenues pledged for them are insufficient to make the payments and only where the agency's tax increment revenues were also pledged for the repayment of the bonds. (C) Payments scheduled for other debts and obligations listed in the Recognized Obligation Payment Schedule that are required to be paid from former tax increment revenue. (3) Third, on  January 16, 2012, and  June 1, 2012, and each January 16 and June 1 thereafter, to each successor agency for the administrative cost allowance, as defined in Section 34171, for administrative costs set forth in an approved administrative budget for those payments required to be paid from former tax increment revenues. (4) Fourth, on  January 16, 2012, and  June 1, 2012, and each January 16 and June 1 thereafter, any moneys remaining in the Redevelopment Property Tax Trust Fund after the payments and transfers authorized by paragraphs (1) to (3), inclusive, shall be distributed to local agencies and school entities in accordance with Section 34188. (b) If the successor agency reports, no later than  December 1, 2011, and  May  1   15  , 2012, and each December 1 and May 1 thereafter, to the county auditor-controller that the total amount available to the successor agency from the Redevelopment Property Tax Trust Fund allocation to that successor agency's Redevelopment Obligation Retirement Fund, from other funds transferred from each redevelopment agency, and from funds that have or will become available through asset sales and all redevelopment operations, are insufficient to fund the payments required by paragraphs (1) to (3), inclusive, of subdivision (a) in the next six-month fiscal period, the county auditor-controller shall notify the Controller and the Department of Finance no later than 10 days from the date of that notification. The county auditor-controller shall verify whether the successor agency will have sufficient funds from which to service debts according to the Recognized Obligation Payment Schedule and shall report the findings to the Controller. If the Controller concurs that there are insufficient funds to pay required debt service, the amount of the deficiency shall be deducted first from the amount remaining to be distributed to taxing entities pursuant to paragraph (4), and if that amount is exhausted, from amounts available for distribution for administrative costs in paragraph (3). If an agency, pursuant to the provisions of Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15, or 33688, made passthrough payment obligations subordinate to debt service payments required for enforceable obligations, funds for servicing bond debt may be deducted from the amounts for passthrough payments under paragraph (1), as provided in those sections, but only to the extent that the amounts remaining to be distributed to taxing entities pursuant to paragraph (4) and the amounts available for distribution for administrative costs in paragraph (3) have all been exhausted. (c) The county treasurer may loan any funds from the county treasury that are necessary to ensure prompt payments of redevelopment agency debts. (d) The Controller may recover the costs of audit and oversight required under this part from the Redevelopment Property Tax Trust Fund by presenting an invoice therefor to the county auditor-controller who shall set aside sufficient funds for and disburse the claimed amounts prior to making the next distributions to the taxing jurisdictions pursuant to Section 34188. Subject to the approval of the Director of Finance, the budget of the Controller may be augmented to reflect the reimbursement, pursuant to Section 28.00 of the Budget Act.  (e) Notwithstanding any other law, on February 1, 2012, for the period February 1, 2012, to April 15, 2012, inclusive, the county auditor-controller shall, after deducting administrative costs allowed under Section 95.3 of the Revenue and Taxation Code, allocate to redevelopment agencies revenues equivalent to those that would have been allocated to a community redevelopment agency to make the payments listed on the enforceable obligation payment schedule adopted pursuant to Section 34169. On April 15, 2012, for the period April 15, 2012, to June 1, 2012, inclusive, the county auditor-controller shall, after deducting administrative costs allowed under Section 95.3 of the Revenue and Taxation Code allocate to successor agencies revenue equivalent to those that would have been allocated to a community redevelopment agency to make the payments listed on the enforceable obligation payment schedule adopted pursuant to Section 34177.   SEC. 12.   Section 34185 of the   Health and Safety Code   is amended to read:  34185. Commencing on  January 16   May 1  , 2012, and on each January 16 and June 1 thereafter, the county auditor-controller shall transfer, from the Redevelopment Property Tax Trust Fund of each successor agency into the Redevelopment Obligation Retirement Fund of that agency, an amount of property tax revenues equal to that specified in the Recognized Obligation Payment Schedule for that successor agency as payable from the Redevelopment Property Tax Trust Fund subject to the limitations of Sections 34173 and 34183.  SEC. 13.   Section 34187 of the   Health and Safety Code   is amended to read: 34187. Commencing  January   May  1, 2012, whenever a recognized obligation that had been identified in the Recognized Payment Obligation Schedule is paid off or retired, either through early payment or payment at maturity, the county auditor-controller shall distribute to the taxing entities, in accordance with the provisions of the Revenue and Taxation Code, all property tax revenues that were associated with the payment of the recognized obligation.  SEC. 14.   Section 34188.8 of the   Health and Safety Code   is repealed.   34188.8. For purposes of a redevelopment agency that becomes subject to this part pursuant to Section 34195, a date certain identified in this chapter shall not be subject to Section 34191, except for dates certain in Section 34182 and references to "October 1, 2011," or to the "operative date of this part,". However, for purposes of those redevelopment agencies, a date certain identified in this chapter shall be appropriately modified, as necessary to reflect the appropriate fiscal year or portion of a fiscal year.   SEC. 15.   Section 34189.5 is added to the   Health and Safety Code   , to read:   34189.5. In enacting the act that adds this section, it is the intent of the Legislature to preserve the California Supreme Court's December 29, 2011, holding in California Redevelopment Association v. Matosantos, Case No. S194861, while extending the timeframe for implementing Chapter 5 of the First Extraordinary Session of the Statutes of 2011. (a) Notwithstanding any other provision of this act or any other law, a redevelopment agency shall not incur new or expand existing monetary, legal, or contractual obligations, institute any condemnation proceedings, or issue any additional bonds, notes, or other indebtedness commencing December 29, 2011, to April 15, 2012, inclusive. (b) This section shall not be construed to alter or limit any restriction on redevelopment agency activities contained in Part 1.8 (commencing with Section 34161).   SEC. 16.   Section 34191 of the   Health and Safety Code   is repealed.   34191. (a) It is the intent of the Legislature that a redevelopment agency that formerly operated pursuant to the Alternative Voluntary Redevelopment Program (Part 1.9 (commencing with Section 34192)), that becomes subject to this part pursuant to Section 34195, shall be subject to all of the requirements of this part, except that dates and deadlines shall be appropriately modified, as provided in this section, to reflect the date that the agency becomes subject to this part. (b) Except as otherwise provided by law, for purposes of a redevelopment agency that becomes subject to this part pursuant to Section 34195, the following shall apply: (1) Any reference to "January 1, 2011," shall be construed to mean January 1 of the year preceding the year that the redevelopment agency became subject to this part, but no earlier than January 1, 2011. (2) Any reference to "October 1, 2011," or to the "operative date of this part," shall mean the date that is the equivalent to the "October 1, 2011," identified in Section 34167.5 for that redevelopment agency as determined pursuant to Section 34169.5. (3) Except as provided in paragraphs (1) and (2), any reference to a date certain shall be construed to be the date, measured from the date that the redevelopment agency became subject to this part, that is equivalent to the duration of time between the operative date of this part and the date certain identified in statute.   SEC. 17.   Section 97.401 of the  Revenue and Taxation Code   is amended to read:  97.401. Commencing October 1, 2011   April 15, 2012  , the county auditor shall make the calculations required by Section 97.4 based on the amount deposited on behalf of each former redevelopment agency into the Redevelopment Property Tax Trust Fund pursuant to paragraph (1) of subdivision (c) of Section 34182 of the Health and Safety Code. The calculations required by Section 97.4 shall result in cities, counties, and special districts annually remitting to the Educational Revenue Augmentation Fund the same amounts they would have remitted but for the operation of Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code.      SECTION 1.   Section 301.5 is added to the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), to read: Sec.301.5. "Appointing authority" means the following: (a) With respect to a member or alternate appointed pursuant to subdivision (a) of Section 503, the Board of Directors of the Upper San Gabriel Valley Municipal Water District. (b) With respect to a member or alternate appointed pursuant to subdivision (b) of Section 503, the Board of Directors of the San Gabriel Valley Municipal Water District. (c) With respect to a member or alternate appointed pursuant to subdivision (c) of Section 503, the Board of Directors of the Three Valleys Municipal Water District. (d) With respect to a member or alternate appointed pursuant to Section 503.1, the board of directors of the Water Association. (e) With respect to the member or alternate appointed pursuant to subdivision (a) of Section 504, the cities with pumping rights. (f) With respect to the member or alternate appointed pursuant to subdivision (b) of Section 504, the cities without pumping rights.   SEC. 2.   Section 507 of the San Gabriel Basin Water Quality Authority Act (Chapter 776 of the Statutes of 1992), as amended by Section 7 of Chapter 905 of the Statutes of 2000, is amended to read: Sec.507. (a) Except as provided in subdivisions (b) and (c), the terms of the members shall commence on the first Monday in January and each member shall hold office for a term of four years and until the successor takes office. (b) With respect to the initial board members, the terms of the member appointed by the Three Valleys Municipal Water District and the member elected by the cities without pumping rights shall expire on January 1, 1995, and the terms of the remaining members shall expire on January 1, 1997. (c) The terms of the initial producer members and alternates shall commence on the first business day after the appointment of the producer members and alternates. The terms of the initial producer members and alternates shall expire on the fourth January 1 following commencement of their term. (d) Notwithstanding subdivision (a), the appointing authority, by a majority vote, may remove that member or alternate without cause and at any time prior to the expiration of the member's or alternate' s term of office, and may appoint or elect another person as a member or alternate. A person appointed or elected pursuant to this subdivision shall meet the qualifications applicable to the office and shall serve for the remaining term of the office.