BILL NUMBER: SBX1 13AMENDED BILL TEXT AMENDED IN ASSEMBLY SEPTEMBER 2, 2011 INTRODUCED BY Committee on Budget and Fiscal Review MAY 18, 2011An act relating to the Budget Act of 2010.An act to add Section 34194.05 to the Health and Safety Code, relating to redevelopment, and making an appropriation therefor, to take effect immediately, bill related to the budget. LEGISLATIVE COUNSEL'S DIGEST SB 13, as amended, Committee on Budget and Fiscal Review.Budget Act of 2010.Alternative voluntary redevelopment program: application for relief. 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 exempts from dissolution a redevelopment agency of a community where the city or county that created the agency participates in an alternative voluntary redevelopment program, where, among other things, the city or county makes remittances for deposit in the Special District Allocation Fund, as prescribed. During the 2011-12 fiscal year, a city or county is authorized to appeal the remittance amount, as determined by the Director of Finance, on the basis that specified information used to calculate the remittance amount was in error. This bill would authorize a city or county to file an application for relief in the amount of the remittance, on or before November 1, 2011, on the basis that the amount of the remittance will place a significant and detrimental fiscal requirement on the city or county. The bill would appropriate $1,000 from the General Fund to the Department of Finance for the costs to comply with the bill. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. Governor Schwarzenegger issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010. Governor Brown issued a proclamation on January 20, 2011, declaring and reaffirming that a fiscal emergency exists and stating that his proclamation supersedes the earlier proclamation for purposes of that constitutional provision. This bill would state that it addresses the fiscal emergency declared and reaffirmed by the Governor by proclamation issued on January 20, 2011, pursuant to the California Constitution. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2010.The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010.This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 6, 2010, pursuant to the California Constitution.Vote: majority. Appropriation:noyes . Fiscal committee:noyes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 34194.05 is added to the Health and Safety Code , to read: 34194.05. (a) After receiving the notification from the Director of Finance of the amount of the remittance pursuant to subparagraph (J), as adjusted by subparagraph (L), of paragraph (2) of subdivision (b) of Section 34194, a city or county may file an application for relief of the amount of the remittance, or an extension of the payment schedule, or both, to the director on or before November 1, 2011, on the basis that the amount of the remittance will place a significant and detrimental fiscal requirement on the city or county. An appeal for relief shall include all of the following: (1) Evidence that the estimated net tax increment, as defined in subparagraph (A) of paragraph (2) of subdivision (b) of Section 34194, but with respect to the current fiscal year, together with any additional assets, moneys, funds, or other resources available to the redevelopment agency are less than the amount determined pursuant to subparagraph (J) of paragraph (2) of subdivision (b) of Section 34194, as adjusted by subparagraph (L) of that paragraph. (2) A finding that the city or county does not have the necessary financial resources that, together with amounts available from the redevelopment agency that could be made available to the city or county under Section 34194.2, are insufficient, in whole or in part, to make the payment determined under subparagraph (J), as adjusted by subparagraph (L), of paragraph (2) of subdivision (b) of Section 34194, as indicated by various measures, including, but not limited, to the level of or recent changes in city or county revenues, existing fund balances, public employment or service levels, current credit rating or recent changes to this credit rating, and the existence of borrowable resources. (3) A demonstration the city or county is experiencing economic distress substantially worse than other cities and counties in the region or state as evidenced by, but not limited to, levels or changes in unemployment, property values, household income, taxable sales, or vacancy rates. (b) The director may request additional or clarifying information as needed in order to make a determination regarding the appeal. The director may reject the appeal or accept it in whole or in part and shall provide a statement of reasons in support of the decision. The director shall notify the city or county and the county auditor-controller of the decision by December 15, 2011. SEC. 2. The Legislature finds and declares that Section 34194.05 of the Health and Safety Code, as added by Section 1 of this act, implements, and is part of the appeals process established in, paragraph (2) of subdivision (b) of Section 34194 of the Health and Safety Code, as added by Chapter 6 of the First Extraordinary Session of the Statutes of 2011. SEC. 3. The sum of one thousand dollars ($1,000) is hereby appropriated to the Department of Finance from the General Fund for administrative costs associated with this act. SEC. 4. This act addresses the fiscal emergency declared by the Governor by proclamation on January 20, 2011, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution. SEC. 5. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2010.SEC. 2.This act addresses the fiscal emergency declared by the Governor by proclamation on December 6, 2010, pursuant to subdivision (f) of Section 10 of Article IV of the California Constitution.