California 2021 2021-2022 Regular Session

California Assembly Bill AB2780 Amended / Bill

Filed 03/24/2022

                    Amended IN  Assembly  March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2780Introduced by Assembly Member ArambulaFebruary 18, 2022 An act to amend Section 34172 of the Health and Safety 53398.54 of the Government Code, relating to redevelopment.LEGISLATIVE COUNSEL'S DIGESTAB 2780, as amended, Arambula. Dissolution of redevelopment agencies. agencies: enhanced infrastructure financing districts.Existing law dissolved all redevelopment agencies and community development agencies in accordance with a detailed statutory process. process and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. Existing law prohibits a city or county that created a redevelopment agency from initiating the creation of an enhanced infrastructure financing district or participating in the governance or financing of an enhanced infrastructure financing district until certain specified events occur, including that the successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified.This bill would, notwithstanding those provisions, authorize a successor agency or an entity that created a redevelopment agency to initiate, participate in, govern, or finance an enhanced infrastructure financing district if those specified events have occurred, except the requirement to have received a finding of completion, and if the successor agency or entity is in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 53398.54 of the Government Code is amended to read:53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.SECTION 1.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 in existence on the effective date of this part are hereby dissolved and shall no longer exist as a public body, corporate or politic. 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 dissolved under this section does 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 agencys 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 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.(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 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.

 Amended IN  Assembly  March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2780Introduced by Assembly Member ArambulaFebruary 18, 2022 An act to amend Section 34172 of the Health and Safety 53398.54 of the Government Code, relating to redevelopment.LEGISLATIVE COUNSEL'S DIGESTAB 2780, as amended, Arambula. Dissolution of redevelopment agencies. agencies: enhanced infrastructure financing districts.Existing law dissolved all redevelopment agencies and community development agencies in accordance with a detailed statutory process. process and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. Existing law prohibits a city or county that created a redevelopment agency from initiating the creation of an enhanced infrastructure financing district or participating in the governance or financing of an enhanced infrastructure financing district until certain specified events occur, including that the successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified.This bill would, notwithstanding those provisions, authorize a successor agency or an entity that created a redevelopment agency to initiate, participate in, govern, or finance an enhanced infrastructure financing district if those specified events have occurred, except the requirement to have received a finding of completion, and if the successor agency or entity is in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.This bill would make nonsubstantive changes to that provision.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  March 24, 2022

Amended IN  Assembly  March 24, 2022

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 2780

Introduced by Assembly Member ArambulaFebruary 18, 2022

Introduced by Assembly Member Arambula
February 18, 2022

 An act to amend Section 34172 of the Health and Safety 53398.54 of the Government Code, relating to redevelopment.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2780, as amended, Arambula. Dissolution of redevelopment agencies. agencies: enhanced infrastructure financing districts.

Existing law dissolved all redevelopment agencies and community development agencies in accordance with a detailed statutory process. process and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. Existing law prohibits a city or county that created a redevelopment agency from initiating the creation of an enhanced infrastructure financing district or participating in the governance or financing of an enhanced infrastructure financing district until certain specified events occur, including that the successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified.This bill would, notwithstanding those provisions, authorize a successor agency or an entity that created a redevelopment agency to initiate, participate in, govern, or finance an enhanced infrastructure financing district if those specified events have occurred, except the requirement to have received a finding of completion, and if the successor agency or entity is in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.This bill would make nonsubstantive changes to that provision.

Existing law dissolved all redevelopment agencies and community development agencies in accordance with a detailed statutory process. process and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies. Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community. Existing law prohibits a city or county that created a redevelopment agency from initiating the creation of an enhanced infrastructure financing district or participating in the governance or financing of an enhanced infrastructure financing district until certain specified events occur, including that the successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified.

This bill would, notwithstanding those provisions, authorize a successor agency or an entity that created a redevelopment agency to initiate, participate in, govern, or finance an enhanced infrastructure financing district if those specified events have occurred, except the requirement to have received a finding of completion, and if the successor agency or entity is in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.

This bill would make nonsubstantive changes to that provision.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 53398.54 of the Government Code is amended to read:53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.SECTION 1.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 in existence on the effective date of this part are hereby dissolved and shall no longer exist as a public body, corporate or politic. 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 dissolved under this section does 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 agencys 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 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.(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 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.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 53398.54 of the Government Code is amended to read:53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.

SECTION 1. Section 53398.54 of the Government Code is amended to read:

### SECTION 1.

53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.

53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.

53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.



53398.54. A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:

(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.

(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state,where if the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative bodys action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative bodys action to form an enhanced infrastructure financing district pursuant to Section 53398.69.

(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.

(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controllers findings and orders stemming from the reviews as specified in subdivision (c).

(e) Notwithstanding subdivision (a), a successor agency or an entity that created a redevelopment agency may initiate, participate in, govern, or finance an enhanced infrastructure financing district, if the successor agency or entity is in compliance with subdivisions (b), (c), and (d) and is also in compliance with a settlement agreement it has entered into with the state to resolve any redevelopment agency dissolution issues.





(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 in existence on the effective date of this part are hereby dissolved and shall no longer exist as a public body, corporate or politic. 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 dissolved under this section does 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 agencys 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 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.



(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 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.