BILL NUMBER: AB 1250	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 3, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011

INTRODUCED BY   Assembly Members Alejo, Lara, Perea, and V. Manuel
Pérez
   (Principal coauthor: Senator Wright)
   (Coauthors: Assembly Members Allen, Campos, Carter, Davis,
Galgiani, Hall, Bonnie Lowenthal, Mendoza, and Solorio)
   (Coauthor: Senator De León)

                        FEBRUARY 18, 2011

   An act to amend Sections 33080.3, 33080.6, 33320.1, 33334.2,
33353.2, 33367, 33426.5, 33488, 33601, 33610, and 33670 of, to add
Sections 33080.14, 33444.7, 33444.8, 33491, 33607.9, and 33675.1 to,
and to add Article 6.5 (commencing with Section 33679.1) to Chapter 6
of Part 1 of Division 24 of, the Health and Safety Code, relating to
redevelopment  , and declaring the urgency thereof, to take
effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1250, as amended, Alejo. Redevelopment.
   (1) The Community Redevelopment Law authorizes the establishment
of redevelopment agencies in communities to address the effects of
blight, as defined, in blighted areas in those communities known as
project areas. Existing law requires that each redevelopment agency
submit the final report of any audit undertaken by any other local,
state, or federal government entity to its legislative body and to
additionally present an annual report to the legislative body
containing specified information.
   This bill would impose new requirements on the agency with respect
to implementation plans and evidentiary standards and expand
existing prohibitions on agency direct assistance to certain
projects.
   The bill would require the Controller, on or before January 1,
2013, to issue regulations revising and consolidating reporting for
redevelopment agencies and to develop a simple, uniform, and
consistent methodology for the calculation, payment, and reporting of
passthrough payments. The bill would also require the Controller to
review and revise the guidelines adopted for the content of the final
report at least every 5 years, as specified. The bill would also
transfer certain reporting requirements from the Department of
Housing and Community Development to the Controller, as specified,
and require that agencies send certain notifications to the
Controller in addition to sending the notifications to the
department. The bill would require that the department develop
guidelines establishing standards to evaluate agency performance.
   (2) The California Constitution authorizes a redevelopment agency
to receive funding through tax increment revenues attributable to
increases in assessed property tax valuation of property in a project
area due to redevelopment. Existing law prescribes the procedure by
which the tax increment revenue is allocated.
   The bill would establish an alternate procedure by which tax
increment revenue is allocated for purposes of redevelopment plans
adopted on or after January 1, 2012, and for any new territory added
to a redevelopment plan that was adopted prior to January 1, 2012,
but amended after January 1, 2012, to add new territory.
Specifically, the procedure would require that tax increment revenue
transferred to an agency exclude any funds considered educational
entity property tax revenues, as prescribed.
   (3) The bill would authorize an agency to loan or grant funds for
projects relating to energy efficiency. The bill would also authorize
an agency to provide direct assistance, as described, to businesses
within project areas for industrial or manufacturing uses or similar
uses of statewide benefit. 
   (4) This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 33080.3 of the Health and Safety Code is
amended to read:
   33080.3.  The Controller shall develop and periodically revise the
guidelines for the content of the report required by Section
33080.1. The Controller shall appoint an advisory committee to advise
in the development of the guidelines. The advisory committee shall
include representatives from among those persons nominated by the
department, the Legislative Analyst, the California Society of
Certified Public Accountants, the California Redevelopment
Association, and any other authorities in the field that the
Controller deems necessary and appropriate. The Controller shall
review and revise the guidelines at least every five years, following
consultation with the advisory committee.
  SEC. 2.  Section 33080.6 of the Health and Safety Code is amended
to read:
   33080.6.  (a) On or before May 1 of each year, the Controller
shall compile and publish annual reports of the activities of
redevelopment agencies for the previous fiscal year, based on the
information reported pursuant to subdivision (c) of Section 33080.1
and reporting the types of findings made by agencies pursuant to
paragraph (1), (2), or (3) of subdivision (a) of Section 33334.2,
including the date of the findings. The Controller's compilation
shall also report on the project area mergers reported pursuant to
Section 33488. The Controller shall publish this information for each
project area of each redevelopment agency. The first report
published pursuant to this section shall be for the 2013-14 fiscal
year.
   (b) Changes to this section made by the act amending this section
shall take effect on January 1, 2013.
  SEC. 3.  Section 33080.14 is added to the Health and Safety Code,
to read:
   33080.14.  (a) On or before January 1, 2013, the department shall
develop guidelines establishing specific measures and standards to
evaluate redevelopment agency performance in specific areas,
including the following:
   (1) A uniform method of calculating and reporting job creation and
retention.
   (2) Standards for measuring the efficiency and effectiveness of
expenditures for affordable housing.
   (3) Standards for measuring and reducing poverty levels in project
areas.
   (4) Standards for measuring and reducing crime in project areas.
   (5) Methods for measuring reductions in vehicle miles traveled
accomplished through redevelopment projects, including, but not
limited to, assistance provided to infill and transit oriented
development.
   (6) Standards for reporting on brownfield cleanup and hazardous
waste mitigation.
   (b) The department shall appoint an advisory committee to assist
and advise in the development of the guidelines required by this
section. The advisory committee shall include representatives with
demonstrated expertise in redevelopment, local government metrics
that measure any one or more of the standards described above, or any
other fields of study that the department deems necessary and
appropriate.
   (c) Commencing with the 2013-14 fiscal year, the annual report
required by Section 33080.1 shall include a discussion of the
redevelopment agency's performance based on the guidelines prepared
by the department pursuant to this section.
  SEC. 4.  Section 33320.1 of the Health and Safety Code is amended
to read:
   33320.1.  (a) "Project area" means, except as provided in Section
33320.2, 33320.3, 33320.4, or 33492.3, a predominantly urbanized area
of a community that is a blighted area, the redevelopment of which
is necessary to effectuate the public purposes declared in this part,
and that is selected by the planning commission pursuant to Section
33322.
   (b) As used in this section, "predominantly urbanized" means that
not less than 80 percent of the land in the project area is either of
the following:
   (1)  Has been or is developed for urban uses.
   (2)  Is an integral part of one or more areas developed for urban
uses that are surrounded or substantially surrounded by parcels that
have been or are developed for urban uses. Parcels separated by only
an improved right-of-way shall be deemed adjacent for the purpose of
this subdivision. Parcels that are not blighted shall not be included
in the project area for the purpose of obtaining the allocation of
taxes from the area pursuant to Section 33670 without other
substantial justification for their inclusion.
   (c) For the purposes of this section, a parcel of property as
shown on the official maps of the county assessor is developed if
that parcel is developed in a manner that is consistent with zoning
standards or is otherwise permitted under law.
   (d) Except for a redevelopment plan or plan amendment to add
territory to a project area pursuant to Chapter 4.5 (commencing with
Section 33492), a redevelopment plan or plan amendment to add
territory to a project area shall not be adopted by a community if
the proposed project area or area to be added by plan amendment, when
aggregated with all other existing project areas within the
community, would result in having (1) 25 percent of a city's or city
and county's total land area included within the combined
redevelopment project areas or (2) 10 percent of a county's total
unincorporated land area included within redevelopment project areas.
The limitations contained in this subdivision shall apply only to a
project area for which a final redevelopment plan is adopted on or
after January 1, 2012, or to an area that is added to a project area
by an amendment to a redevelopment plan, which amendment is adopted
on or after January 1, 2012.
   (e) The requirement that a project be predominantly urbanized
shall apply only to a project area for which a final redevelopment
plan is adopted on or after January 1, 1984, or to an area that is
added to a project area by an amendment to a redevelopment plan,
which amendment is adopted on or after January 1, 1984.
  SEC. 5.  Section 33334.2 of the Health and Safety Code is amended
to read:
   33334.2.  (a) Except as provided in subdivision (k), not less than
20 percent of all taxes that are allocated to the agency pursuant to
Section 33670 shall be used by the agency for the purposes of
increasing, improving, and preserving the community's supply of low-
and moderate-income housing available at affordable housing cost, as
defined by Section 50052.5, to persons and families of low or
moderate income, as defined in Section 50093, lower income
households, as defined by Section 50079.5, very low income
households, as defined in Section 50105, and extremely low income
households, as defined by Section 50106, that is occupied by these
persons and families, unless one of the following findings is made
annually by resolution:
   (1) (A) That no need exists in the community to improve, increase,
or preserve the supply of low- and moderate-income housing,
including housing for very low income households in a manner that
would benefit the project area and that this finding is consistent
with the housing element of the community's general plan required by
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, including its share of the
regional housing needs of very low income households and persons and
families of low or moderate income.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that the community does not
have a need to improve, increase, or preserve the supply of low- and
moderate-income housing available at affordable housing cost to
persons and families of low or moderate income and to very low income
households. This finding shall only be made if it is consistent with
the planning agency's annual report to the legislative body on
implementation of the housing element required by subdivision (b) of
Section 65400 of the Government Code. No agency of a charter city
shall make this finding unless the planning agency submits the report
pursuant to subdivision (b) of Section 65400 of the Government Code.
This finding shall not take effect until the agency has complied
with subdivision (b) of this section.
   (2) (A) That some stated percentage less than 20 percent of the
taxes that are allocated to the agency pursuant to Section 33670 is
sufficient to meet the housing needs of the community, including its
share of the regional housing needs of persons and families of low-
or moderate-income and very low income households, and that this
finding is consistent with the housing element of the community's
general plan required by Article 10.6 (commencing with Section 65580)
of Chapter 3 of Division 1 of Title 7 of the Government Code.
   (B) This finding shall only be made if the housing element of the
community's general plan demonstrates that a percentage of less than
20 percent will be sufficient to meet the community's need to
improve, increase, or preserve the supply of low- and moderate-income
housing available at affordable housing cost to persons and families
of low or moderate income and to very low income households. This
finding shall only be made if it is consistent with the planning
agency's annual report to the legislative body on implementation of
the housing element required by subdivision (b) of Section 65400 of
the Government Code. No agency of a charter city shall make this
finding unless the planning agency submits the report pursuant to
subdivision (b) of Section 65400 of the Government Code. This finding
shall not take effect until the agency has complied with subdivision
(b) of this section.
   (C) For purposes of making the findings specified in this
paragraph and paragraph (1), the housing element of the general plan
of a city, county, or city and county shall be current, and shall
have been determined by the department pursuant to Section 65585 to
be in substantial compliance with Article 10.6 (commencing with
Section 65580) of Chapter 3 of Division 1 of Title 7 of the
Government Code.
   (3) (A) That the community is making a substantial effort to meet
its existing and projected housing needs, including its share of the
regional housing needs, with respect to persons and families of low
and moderate income, particularly very low income households, as
identified in the housing element of the community's general plan
required by Article 10.6 (commencing with Section 65580) of Chapter 3
of Division 1 of Title 7 of the Government Code, and that this
effort, consisting of direct financial contributions of local funds
used to increase and improve the supply of housing affordable to, and
occupied by, persons and families of low or moderate income and very
low income households is equivalent in impact to the funds otherwise
required to be set aside pursuant to this section. In addition to
any other local funds, these direct financial contributions may
include federal or state grants paid directly to a community and that
the community has the discretion of using for the purposes for which
moneys in the Low and Moderate Income Housing Fund may be used. The
legislative body shall consider the need that can be reasonably
foreseen because of displacement of persons and families of low or
moderate income or very low income households from within, or
adjacent to, the project area, because of increased employment
opportunities, or because of any other direct or indirect result of
implementation of the redevelopment plan. No finding under this
subdivision may be made until the community has provided or ensured
the availability of replacement dwelling units as defined in Section
33411.2 and until it has complied with Article 9 (commencing with
Section 33410).
   (B) In making the determination that other financial contributions
are equivalent in impact pursuant to this subdivision, the agency
shall include only those financial contributions that are directly
related to programs or activities authorized under subdivision (e).
   (C) The authority for making the finding specified in this
paragraph shall expire on June 30, 1993, except that the expiration
shall not be deemed to impair contractual obligations to bondholders
or private entities incurred prior to May 1, 1991, and made in
reliance on the provisions of this paragraph. Agencies that make this
finding after June 30, 1993, shall show evidence that the agency
entered into the specific contractual obligation with the specific
intention of making a finding under this paragraph in order to
provide sufficient revenues to pay off the indebtedness.
   (b) Within 10 days following the making of a finding under either
paragraph (1) or (2) of subdivision (a), the agency shall send the
department and the Controller a copy of the finding, including the
factual information supporting the finding and other factual
information in the housing element that demonstrates that either (1)
the community does not need to increase, improve, or preserve the
supply of housing for low- and moderate-income households, including
very low income households, or (2) a percentage less than 20 percent
will be sufficient to meet the community's need to improve, increase,
and preserve the supply of housing for low- and moderate-income
households, including very low income households. Within 10 days
following the making of a finding under paragraph (3) of subdivision
(a), the agency shall send the department and the Controller a copy
of the finding, including the factual information supporting the
finding that the community is making a substantial effort to meet its
existing and projected housing needs. Agencies that make this
finding after June 30, 1993, shall also submit evidence to the
department of its contractual obligations with bondholders or private
entities incurred prior to May 1, 1991, and made in reliance on this
finding.
   (c) In any litigation to challenge or attack a finding made under
paragraph (1), (2), or (3) of subdivision (a), the burden shall be
upon the agency to establish that the finding is supported by
substantial evidence in light of the entire record before the agency.
If an agency is determined by a court to have knowingly
misrepresented any material facts regarding the community's share of
its regional housing need for low- and moderate-income housing,
including very low income households, or the community's production
record in meeting its share of the regional housing need pursuant to
the report required by subdivision (b) of Section 65400 of the
Government Code, the agency shall be liable for all court costs and
plaintiff's attorney's fees, and shall be required to allocate not
less than 25 percent of the agency's tax increment revenues to its
Low and Moderate Income Housing Fund in each year thereafter.
   (d) Nothing in this section shall be construed as relieving any
other public entity or entity with the power of eminent domain of any
legal obligations for replacement or relocation housing arising out
of its activities.
   (e) In carrying out the purposes of this section, the agency may
exercise any or all of its powers for the construction,
rehabilitation, or preservation of affordable housing for extremely
low, very low, low- and moderate-income persons or families,
including the following:
   (1) Acquire real property or building sites subject to Section
33334.16.
   (2) (A) Improve real property or building sites with onsite or
offsite improvements, but only if both (i) the improvements are part
of the new construction or rehabilitation of affordable housing units
for low- or moderate-income persons that are directly benefited by
the improvements, and are a reasonable and fundamental component of
the housing units, and (ii) the agency requires that the units remain
available at affordable housing cost to, and occupied by, persons
and families of extremely low, very low, low, or moderate income for
the same time period and in the same manner as provided in
subdivision (c) and paragraph (2) of subdivision (f) of Section
33334.3.
   (B) If the newly constructed or rehabilitated housing units are
part of a larger project and the agency improves or pays for onsite
or offsite improvements pursuant to the authority in this
subdivision, the agency shall pay only a portion of the total cost of
the onsite or offsite improvement. The maximum percentage of the
total cost of the improvement paid for by the agency shall be
determined by dividing the number of housing units that are
affordable to low- or moderate-income persons by the total number of
housing units, if the project is a housing project, or by dividing
the cost of the affordable housing units by the total cost of the
project, if the project is not a housing project.
   (3) Donate real property to private or public persons or entities.

   (4) Finance insurance premiums pursuant to Section 33136.
   (5) Construct buildings or structures.
   (6) Acquire buildings or structures.
   (7) Rehabilitate buildings or structures.
   (8) Provide subsidies to, or for the benefit of, extremely low
income households, as defined by Section 50106, very low income
households, as defined by Section 50105, lower income households, as
defined by Section 50079.5, or persons and families of low or
moderate income, as defined by Section 50093, to the extent those
households cannot obtain housing at affordable costs on the open
market. Housing units available on the open market are those units
developed without direct government subsidies.
   (9) Develop plans, pay principal and interest on bonds, loans,
advances, or other indebtedness, or pay financing or carrying
charges.
   (10) Maintain the community's supply of mobilehomes.
   (11) Preserve the availability to lower income households of
affordable housing units in housing developments that are assisted or
subsidized by public entities and that are threatened with imminent
conversion to market rates.
   (f) The agency may use these funds to meet, in whole or in part,
the replacement housing provisions in Section 33413. However, nothing
in this section shall be construed as limiting in any way the
requirements of that section.
   (g) (1) The agency may use these funds inside or outside the
project area. The agency may only use these funds outside the project
area upon a resolution of the agency and the legislative body that
the use will be of benefit to the project. The determination by the
agency and the legislative body shall be final and conclusive as to
the issue of benefit to the project area. The Legislature finds and
declares that the provision of replacement housing pursuant to
Section 33413 is always of benefit to a project. Unless the
legislative body finds, before the redevelopment plan is adopted,
that the provision of low- and moderate-income housing outside the
project area will be of benefit to the project, the project area
shall include property suitable for low- and moderate-income housing.

   (2) (A) The Contra Costa County Redevelopment Agency may use these
funds anywhere within the unincorporated territory, or within the
incorporated limits of the City of Walnut Creek on sites contiguous
to the Pleasant Hill BART Station Area Redevelopment Project area.
The agency may only use these funds outside the project area upon a
resolution of the agency and board of supervisors determining that
the use will be of benefit to the project area. In addition, the
agency may use these funds within the incorporated limits of the City
of Walnut Creek only if the agency and the board of supervisors find
all of the following:
   (i) Both the County of Contra Costa and the City of Walnut Creek
have adopted and are implementing complete and current housing
elements of their general plans that the Department of Housing and
Community Development has determined to be in compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code.
   (ii) The development to be funded shall not result in any
residential displacement from the site where the development is to be
built.
   (iii) The development to be funded shall not be constructed in an
area that currently has more than 50 percent of its population
comprised of racial minorities or low-income families.
   (iv) The development to be funded shall allow construction of
affordable housing closer to a rapid transit station than could be
constructed in the unincorporated territory outside the Pleasant Hill
BART Station Area Redevelopment Project.
   (B) If the agency uses these funds within the incorporated limits
of the City of Walnut Creek, all of the following requirements shall
apply:
   (i) The funds shall be used only for the acquisition of land for,
and the design and construction of, the development of housing
containing units affordable to, and occupied by, low- and
moderate-income persons.
   (ii) If less than all the units in the development are affordable
to, and occupied by, low- or moderate-income persons, any agency
assistance shall not exceed the amount needed to make the housing
affordable to, and occupied by, low- or moderate-income persons.
   (iii) The units in the development that are affordable to, and
occupied by, low- or moderate-income persons shall remain affordable
for a period of at least 55 years.
   (iv) The agency and the City of Walnut Creek shall determine, if
applicable, whether Article XXXIV of the California Constitution
permits the development.
   (h) The Legislature finds and declares that expenditures or
obligations incurred by the agency pursuant to this section shall
constitute an indebtedness of the project.
   (i) This section shall only apply to taxes allocated to a
redevelopment agency for which a final redevelopment plan is adopted
on or after January 1, 1977, or for any area that is added to a
project by an amendment to a redevelopment plan, which amendment is
adopted on or after the effective date of this section. An agency
may, by resolution, elect to make all or part of the requirements of
this section applicable to any redevelopment project for which a
redevelopment plan was adopted prior to January 1, 1977, subject to
any indebtedness incurred prior to the election.
   (j) (1) (A) An action to compel compliance with the requirement of
Section 33334.3 to deposit not less than 20 percent of all taxes
that are allocated to the agency pursuant to Section 33670 in the Low
and Moderate Income Housing Fund shall be commenced within 10 years
of the alleged violation. A cause of action for a violation accrues
on the last day of the fiscal year in which the funds were required
to be deposited in the Low and Moderate Income Housing Fund.
   (B) An action to compel compliance with the requirement of this
section or Section 33334.6 that money deposited in the Low and
Moderate Income Housing Fund be used by the agency for purposes of
increasing, improving, and preserving the community's supply of low-
and moderate-income housing available at affordable housing cost
shall be commenced within 10 years of the alleged violation. A cause
of action for a violation accrues on the date of the actual
expenditure of the funds.
   (C) An agency found to have deposited less into the Low and
Moderate Income Housing Fund than mandated by Section 33334.3 or to
have spent money from the Low and Moderate Income Housing Fund for
purposes other than increasing, improving, and preserving the
community's supply of low- and moderate-income housing, as mandated,
by this section or Section 33334.6 shall repay the funds with
interest in one lump sum pursuant to Section 970.4 or 970.5 of the
Government Code or may do either of the following:
   (i) Petition the court under Section 970.6 for repayment in
installments.
   (ii) Repay the portion of the judgment due to the Low and Moderate
Income Housing Fund in equal installments over a period of five
years following the judgment.
   (2) Repayment shall not be made from the funds required to be set
aside or used for low- and moderate-income housing pursuant to this
section.
   (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of
paragraph (1), all costs, including reasonable attorney's fees if
included in the judgment, are due and shall be paid upon entry of
judgment or order.
   (4) Except as otherwise provided in this subdivision, Chapter 2
(commencing with Section 970) of Part 5 of Division 3.6 of Title 1 of
the Government Code for the enforcement of a judgment against a
local public entity applies to a judgment against a local public
entity that violates this section.
   (5) This subdivision applies to actions filed on and after January
1, 2006.
   (6) The limitations period specified in subparagraphs (A) and (B)
of paragraph (1) does not apply to a cause of action brought pursuant
to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure.
   (k) (1) From July 1, 2009, to June 30, 2010, inclusive, an agency
may suspend all or part of its required allocation to the Low and
Moderate Income Housing Fund from taxes that are allocated to that
agency pursuant to Section 33670.
   (2) An agency that suspends revenue pursuant to paragraph (1)
shall pay back to its low- and moderate-income housing fund the
amount of revenue that was suspended in the 2009-10 fiscal year
pursuant to this subdivision from July 1, 2010, to June 30, 2015,
inclusive.
   (3) An agency that suspends revenue pursuant to paragraph (1) and
fails to repay or have repaid on its behalf the amount of revenue
suspended pursuant to paragraph (2) shall, commencing July 1, 2015,
be required to allocate an additional 5 percent of all taxes that are
allocated to that agency pursuant to Section 33670 for low- and
moderate-income housing for the remainder of the time that the agency
receives allocations of tax revenue pursuant to Section 33670.
   (4) An agency that fails to pay or have paid on its behalf the
full amount calculated pursuant to subparagraph (J) of paragraph (2)
of subdivision (a) of Section 33690, or subparagraph (J) of paragraph
(2) of subdivision (a) of Section 33690.5, as the case may be,
shall, commencing July 1, 2010, or July 1, 2011, as applicable, be
required to allocate an additional 5 percent of all taxes that are
allocated to that agency pursuant to Section 33670 for low- and
moderate-income housing for the remainder of the time that the agency
receives allocations of tax revenue pursuant to Section 33670.
  SEC. 6.  Section 33353.2 of the Health and Safety Code is amended
to read:
   33353.2.  Except as provided in Section 33679.2, "affected taxing
entity" means any governmental taxing agency that levies a property
tax on all or any portion of the property located in the adopted
project area in the fiscal year prior to the fiscal year in which the
report prepared pursuant to Section 33328 is issued or in any fiscal
year after the date the
redevelopment plan is adopted. To the extent that a new governmental
taxing agency wholly or partially replaces the geographic
jurisdiction of a preexisting governmental taxing agency, the new
taxing agency shall be an "affected taxing entity" and the
preexisting taxing agency shall no longer be an "affected taxing
entity."
  SEC. 7.  Section 33367 of the Health and Safety Code is amended to
read:
   33367.  The ordinance shall contain all of the following:
   (a) The purposes and intent of the legislative body with respect
to the project area.
   (b) The plan incorporated by reference.
   (c) A designation of the approved plan as the official
redevelopment plan of the project area.
   (d) The findings and determinations of the legislative body that:
   (1) The project area is a blighted area, the redevelopment of
which is necessary to effectuate the public purposes declared in this
part. This finding shall be supported by empirical and, to the
greatest extent feasible, quantifiable evidence demonstrating the
prevalence of specific conditions set forth in Section 33031 on
specific properties that are so substantial that they cause a
reduction of, or lack of, proper utilization of the entire project
area. Evidence shall be reasonable in nature, credible, and of solid
value. Conclusions not based on documented evidence of specific
conditions shall be deemed insufficient.
   (2) The redevelopment plan would redevelop the area in conformity
with this part and in the interests of the public peace, health,
safety, and welfare.
   (3) The adoption and carrying out of the redevelopment plan is
economically sound and feasible.
   (4) The redevelopment plan is consistent with the general plan of
the community, including, but not limited to, the community's housing
element, which substantially complies with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code.
   (5) The carrying out of the redevelopment plan would promote the
public peace, health, safety, and welfare of the community and would
effectuate the purposes and policy of this part.
   (6) The condemnation of real property, if provided for in the
redevelopment plan, is necessary to the execution of the
redevelopment plan and adequate provisions have been made for payment
for property to be acquired as provided by law.
   (7) The agency has a feasible method or plan for the relocation of
families and persons displaced from the project area, if the
redevelopment plan may result in the temporary or permanent
displacement of any occupants of housing facilities in the project
area.
   (8) (A) There are, or shall be provided, in the project area or in
other areas not generally less desirable in regard to public
utilities and public and commercial facilities and at rents or prices
within the financial means of the families and persons displaced
from the project area, decent, safe, and sanitary dwellings equal in
number to the number of and available to the displaced families and
persons and reasonably accessible to their places of employment.
   (B) Families and persons shall not be displaced prior to the
adoption of a relocation plan pursuant to Sections 33411 and 33411.1.
Dwelling units housing persons and families of low or moderate
income shall not be removed or destroyed prior to the adoption of a
replacement housing plan pursuant to Sections 33334.5, 33413, and
33413.5.
   (9) All noncontiguous areas of a project area are either blighted
or necessary for effective redevelopment and are not included for the
purpose of obtaining the allocation of taxes from the area pursuant
to Section 33670 without other substantial justification for their
inclusion.
   (10) Inclusion of any lands, buildings, or improvements which are
not detrimental to the public health, safety, or welfare is necessary
for the effective redevelopment of the area of which they are a
part; that any area included is necessary for effective redevelopment
and is not included for the purpose of obtaining the allocation of
tax increment revenues from the area pursuant to Section 33670
without other substantial justification for its inclusion.
   (11) The elimination of blight and the redevelopment of the
project area could not be reasonably expected to be accomplished by
private enterprise acting alone without the aid and assistance of the
agency.
   (12) The project area is predominantly urbanized, as defined by
subdivision (b) of Section 33320.1.
   (13) The time limitation and, if applicable, the limitation on the
number of dollars to be allocated to the agency that are contained
in the plan are reasonably related to the proposed projects to be
implemented in the project area and to the ability of the agency to
eliminate blight within the project area.
   (14) The implementation of the redevelopment plan will improve or
alleviate the physical and economic conditions of blight in the
project area, as described in the report prepared pursuant to Section
33352.
   (e) A statement that the legislative body is satisfied that
permanent housing facilities will be available within three years
from the time occupants of the project area are displaced and that,
pending the development of the facilities, there will be available to
the displaced occupants adequate temporary housing facilities at
rents comparable to those in the community at the time of their
displacement.
  SEC. 8.  Section 33426.5 of the Health and Safety Code is amended
to read:
   33426.5.  Notwithstanding the provisions of Sections 33391, 33430,
33433, and 33445, or any other provision of this part, an agency
shall not provide any form of direct assistance to the following:
   (a)  An automobile dealership which will be or is on a parcel of
land which has not previously been developed for urban use, unless,
prior to the effective date of the act that adds this section, the
agency either owns the land or has entered into an enforceable
agreement, for the purchase of the land or of an interest in the
land, including, but not limited to, a lease or an agreement
containing covenants affecting real property, that requires the land
to be developed and used as an automobile dealership.
   (b)  (1)  A development that will be or is on a parcel of land of
five acres or more which has not previously been developed for urban
use and that will, when developed, generate sales or use tax pursuant
to Part 1.5 (commencing with Section 7200) of Division 2 of the
Revenue and Taxation Code, unless the principal permitted use of the
development is office, hotel, manufacturing, or industrial, or
unless, prior to the effective date of the act that adds this
section, the agency either owns the land or has entered into an
enforceable agreement, for the purchase of the land or of an interest
in the land, including, but not limited to, a lease or an agreement
containing covenants affecting real property, that requires the land
to be developed.
   (2)  For the purposes of this subdivision, a parcel shall include
land on an adjacent or nearby parcel on which a use exists that is
necessary for the legal development of the parcel.
   (c) A development that will be or is on a parcel of land of 20
acres or more that has not previously been developed for urban use,
except that this restriction shall not apply to land located within
both a project area adopted pursuant to Chapter 4.5 (commencing with
Section 33492) and the boundaries of a former military base that has
been closed or realigned by the actions of the federal Defense Base
Closure and Realignment Commission.
   (d) A development or business, either directly or indirectly, for
the acquisition, construction, improvement, rehabilitation, or
replacement of property that is or would be used for a golf course or
for a racetrack, speedway, or other racing venue.
   (e) A development or business, either directly or indirectly, for
the acquisition, construction, improvement, rehabilitation, or
replacement of property that is or would be used for gambling or
gaming of any kind whatsoever including, but not limited to, casinos,
gaming clubs, bingo operations, or any facility wherein banked or
percentage games, any form of gambling device, or lotteries, other
than the California State Lottery, are or will be played.
   (f) The prohibition in subdivision (e) is not intended to prohibit
a redevelopment agency from acquiring property on or in which an
existing gambling enterprise is located, for the purpose of selling
or leasing the property for uses other than gambling, provided that
the agency acquires the property for fair market value.
   (g) This section shall not be construed to apply to agency
assistance in the construction of public improvements that serve all
or a portion of a project area and that are not required to be
constructed as a condition of approval of a development described in
subdivision (a), (b), (c), (d), or (e), or to prohibit assistance in
the construction of public improvements that are being constructed
for a development that is not described in subdivision (a), (b), (c),
(d), or (e).
  SEC. 9.  Section 33444.7 is added to the Health and Safety Code, to
read:
   33444.7.  An agency may establish a program under which it loans
or grants funds to owners or tenants to improve, rehabilitate, or
retrofit buildings or structures located within the redevelopment
project area to increase energy efficiency for such buildings or
structures, or to facilitate infill development of areas targeted for
such development in an approved sustainable communities strategy
that applies to the agency's jurisdiction.
  SEC. 10.  Section 33444.8 is added to the Health and Safety Code,
to read:
   33444.8.  (a) An agency may provide direct assistance to
businesses within project areas in connection with new or existing
facilities for industrial or manufacturing uses or similar uses of
statewide benefit, where the assistance provided is reasonably
expected to result in the retention or expansion of not less than 25
full-time equivalent jobs within the project area.
   (b) Direct assistance may include, but is not limited to, loans,
loan guarantees, or the provision or replacement of machinery and
equipment in new or existing facilities for industrial or
manufacturing uses in the project area.
   (c) The Legislature finds and declares that the purpose of this
section is to clarify existing law and to provide agencies with
additional authority to assist businesses in order to encourage the
retention of existing employment opportunities and the attraction of
new employment opportunities. These activities and programs shall
constitute redevelopment as prescribed in Sections 33020 and 33021.
  SEC. 11.  Section 33488 of the Health and Safety Code is amended to
read:
   33488.  Prior to merging project areas pursuant to Section 33486,
a redevelopment agency shall notify the department and the Controller
of its intention to merge its project areas, which shall occur no
later than 30 days prior to adoption of the ordinance which provides
for merger.
  SEC. 12.  Section 33491 is added to the Health and Safety Code, to
read:
   33491.  (a) Commencing with the implementation plan next adopted
following January 1, 2012, an implementation plan shall contain the
specific goals and objectives of the agency for the project area and
the specific programs and potential projects that will cause not less
than 50 percent of its net unencumbered revenue during the next five
years to be expended for one or more of the following:
   (1) Development, including rehabilitation, resulting in
significant job retention or creation.
   (2) Remediation of contaminated properties.
   (3) Infill and transit-oriented development.
   (4) Military base conversion.
   (5) Public infrastructure, excluding buildings.
   (6) Housing affordable to persons of very low and extremely low
income.
   (b) "Net unencumbered revenue" shall mean all revenue received by
the agency, less: debt service on bonds, notes and other obligations
entered into prior to January 1, 2012; payments to taxing agencies
pursuant to Section 33607.5 or 33607.7 or under agreements entered
into pursuant to former Section 33401; and deposits in the agency's
low- and moderate-income housing fund.
   (c) Prior to approving an implementation plan subject to this
subdivision, the agency shall obtain the recommendation of the
project area committee. If a project area committee does not exist,
the agency shall obtain the recommendation of a community advisory
body designated by the legislative body which is representative of
interests described in subdivision (c) of Section 33385. If the
project area committee or community advisory body does not make its
recommendation within 60 days after receiving a copy of the proposed
implementation plan, the agency may consider the implementation plan
without their recommendation.
   (d) The implementation plans adopted every five years after the
implementation plan that implements this subdivision shall evaluate
the agency's progress in achieving the goals and objectives described
in subdivision (a). The agency shall obtain the recommendation of
the project area committee or community advisory body in the manner
set forth in subdivision (c). If a project area committee or
community advisory body recommends against adoption of the
implementation plan adopted 10 years or 20 years after the
implementation plan that implements this subdivision, the agency
shall only adopt that implementation plan upon a two-thirds vote of
its members. Until an implementation plan has been approved as set
forth in this subdivision, an agency shall not undertake any activity
not provided for in the existing implementation plan.
  SEC. 13.  Section 33601 of the Health and Safety Code is amended to
read:
   33601.  (a) An agency may borrow money or accept financial or
other assistance from the state or the federal government or any
other public agency for any redevelopment project within its area of
operation, and may comply with any conditions of such loan or grant.
   (b) An agency may borrow money (by the issuance of bonds or
otherwise) or accept financial or other assistance from any private
lending institution for any redevelopment project for any of the
purposes of this part, and may execute trust deeds or mortgages on
any real or personal property owned or acquired.
   (c) An agency shall pay interest on any money borrowed from the
legislative body at a rate no greater than simple interest at rate
equal to the rate on 10-year United States Treasury bills on the date
the loan is made. The provisions of this subdivision shall become
effective January 1, 2012, and shall apply to money borrowed from the
legislative body at any time, regardless of the provisions of any
note, agreement, or other written instrument to the contrary.
  SEC. 14.  Section 33607.9 is added to the Health and Safety Code,
to read:
   33607.9.  On or before January 1, 2013, the Controller shall
develop a simple, uniform, and consistent methodology for the
calculation, payment, and reporting of passthrough payments as
required by Sections 33607.5 and 33607.7 that is consistent with
existing published case law and Attorney General opinions
interpreting Sections 33607.5 and 33607.7. The Controller shall
appoint an advisory committee to advise in the development of
methodology. The advisory committee shall include representatives
from the Chancellor of the California Community Colleges, the State
Department of Education, the California Redevelopment Association,
county auditor-controllers, and any other authorities in the field
that the Controller deems necessary or appropriate.
  SEC. 15.  Section 33610 of the Health and Safety Code is amended to
read:
   33610.  (a) At any time after the agency created for any community
becomes authorized to transact business and exercise its powers, the
legislative body of the community may appropriate to the agency such
amounts as the legislative body deems necessary for the
administrative expenses and overhead of the agency. The money
appropriated may be paid to the agency as a grant to defray the
expenses and overhead, or as a loan to be repaid upon such terms and
conditions as the legislative body may provide.
   (b) In addition to the common understanding and usual
interpretation of the term, "administrative expense" includes, but is
not limited to, expenses of redevelopment planning and dissemination
of redevelopment information.
   (c) An agency may enter into an agreement with the legislative
body to reimburse the legislative body for administrative expenses
and overhead of the agency paid by the legislative body. An agency
shall not pay costs of providing services, materials, or facilities
which do not directly benefit the redevelopment project.
  SEC. 16.  Section 33670 of the Health and Safety Code is amended to
read:
   33670.  Any redevelopment plan adopted prior to January 1, 2012,
may contain a provision that taxes, if any, levied upon taxable
property in a redevelopment project each year by or for the benefit
of any city, county, city and county, district, or other public
corporation (hereinafter sometimes called "taxing agencies") after
the effective date of the ordinance approving the redevelopment plan,
shall be divided as follows:
   (a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the taxing
agencies upon the total sum of the assessed value of the taxable
property in the redevelopment project as shown upon the assessment
roll used in connection with the taxation of that property by the
taxing agency, last equalized prior to the effective date of the
ordinance, shall be allocated to and when collected shall be paid to
the respective taxing agencies as taxes by or for the taxing agencies
on all other property are paid (for the purpose of allocating taxes
levied by or for any taxing agency or agencies which did not include
the territory in a redevelopment project on the effective date of the
ordinance but to which that territory has been annexed or otherwise
included after that effective date, the assessment roll of the county
last equalized on the effective date of the ordinance shall be used
in determining the assessed valuation of the taxable property in the
project on the effective date); and
   (b) Except as provided in subdivision (e) or in Section 33492.15,
that portion of the levied taxes each year in excess of that amount
shall be allocated to and when collected shall be paid into a special
fund of the redevelopment agency to pay the principal of and
interest on loans, moneys advanced to, or indebtedness (whether
funded, refunded, assumed, or otherwise) incurred by the
redevelopment agency to finance or refinance, in whole or in part,
the redevelopment project. Unless and until the total assessed
valuation of the taxable property in a redevelopment project exceeds
the total assessed value of the taxable property in that project as
shown by the last equalized assessment roll referred to in
subdivision (a), all of the taxes levied and collected upon the
taxable property in the redevelopment project shall be paid to the
respective taxing agencies. When the loans, advances, and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property in
the redevelopment project shall be paid to the respective taxing
agencies as taxes on all other property are paid.
   (c) In any redevelopment project in which taxes have been divided
pursuant to this section prior to 1968, located within any county
with total assessed valuation subject to general property taxes for
the 1967-68 fiscal year between two billion dollars ($2,000,000,000)
and two billion one hundred million dollars ($2,100,000,000), if the
total assessed valuation of taxable property within the redevelopment
project for the 1967-68 fiscal year was reduced, the total sum of
the assessed value of taxable property used as the basis for
apportionment of taxes under subdivision (a) shall be reduced by 10
percent for the 1968-69 fiscal year and fiscal years thereafter.
   (d) For the purposes of this section, taxes shall not include
taxes from the supplemental assessment roll levied pursuant to
Chapter 3.5 (commencing with Section 75) of Part 0.5 of Division 1 of
the Revenue and Taxation Code for the 1983-84 fiscal year.
   (e) That portion of the taxes in excess of the amount identified
in subdivision (a) which are attributable to a tax rate levied by a
taxing agency for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that taxing agency. This
subdivision shall only apply to taxes levied to repay bonded
indebtedness approved by the voters of the taxing agency on or after
January 1, 1989.
  SEC. 17.  Section 33675.1 is added to the Health and Safety Code,
to read:
   33675.1.  On or before January 1, 2013, and periodically
thereafter, the Controller shall review the uniform form for a
statement of indebtedness and a reconciliation statement prescribed
pursuant to Section 33675 and shall, after obtaining the input of
county auditor-controllers, the California Redevelopment Association,
the Society of Certified Public Accountants, and any other
authorities in the field that the Controller deems necessary or
appropriate, make revisions to the uniform form for a statement of
indebtedness and a reconciliation statement consistent with this
part, including, but not limited to, the types and amounts of
indebtedness to be reported.
  SEC. 18.  Article 6.5 (commencing with Section 33679.1) is added to
Chapter 6 of Part 1 of Division 24 of the Health and Safety Code, to
read:

      Article 6.5.  Tax Increment Financing for Projects Created
After January 1, 2012


   33679.1.  (a) This article shall apply to any redevelopment plan
adopted on or after January 1, 2012. For purposes of a redevelopment
plan that is adopted prior to January 1, 2012, but amended after
January 1, 2012, this article shall apply only to new territory added
by that amendment.
   (b) A redevelopment plan or plan amendment that is subject to this
article shall be adopted and implemented in the manner provided by
this part, except to the extent that the other provisions of this
part are inconsistent with this article, in which case this article
shall prevail.
   33679.2.  For purposes of this article, the following terms shall
have the following meanings:
   (a) Notwithstanding Section 33353.2, for purposes of a
redevelopment plan or plan amendment subject to this article,
"affected taxing entity" means any noneducational taxing agency that
levies a property tax on all or any portion of the property located
in the adopted project area in the fiscal year prior to the fiscal
year in which the report prepared pursuant to Section 33328 is issued
or in any fiscal year after the date the redevelopment plan is
adopted. To the extent that a new noneducational taxing agency wholly
or partially replaces the geographic jurisdiction of a preexisting
noneducational taxing agency, the new noneducational taxing agency
shall be an "affected taxing entity" and the preexisting taxing
agency shall no longer be an "affected taxing entity."
   (b) "Noneducational taxing agency" means a city, county, city and
county, district, or other public corporation, except a school
district, community college district, or county office of education.
   (c) "Taxes" shall include, but without limitation, all levies on
an ad valorem basis upon land or real property. "Taxes" shall not
include any amounts of money deposited in a Sales and Use Tax
Compensation Fund pursuant to Section 97.68 of the Revenue and
Taxation Code or a Vehicle License Fee Property Tax Compensation Fund
pursuant to Section 97.70 of the Revenue and Taxation Code.
   33679.3.  Any redevelopment plan or plan amendment that is subject
to this article may contain a provision that taxes, if any, levied
upon taxable property in a redevelopment project each year by or for
the benefit of any noneducational taxing agencies after the effective
date of the ordinance approving the redevelopment plan or plan
amendment, shall be divided as follows:
   (a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the
noneducational taxing agencies upon the total sum of the assessed
value of the taxable property in the redevelopment project as shown
upon the assessment roll used in connection with the taxation of that
property by the noneducational taxing agency, last equalized prior
to the effective date of the ordinance, shall be allocated to and
when collected shall be paid to the respective noneducational taxing
agencies as taxes by or for the noneducational taxing agencies on all
other property are paid (for the purpose of allocating taxes levied
by or for any noneducational taxing agency or agencies which did not
include the territory in a redevelopment project on the effective
date of the ordinance but to which that territory has been annexed or
otherwise included after that effective date, the assessment roll of
the county last equalized on the effective date of the ordinance
shall be used in determining the assessed valuation of the taxable
property in the project on the effective date); and
   (b) Except as provided in subdivision (c) or in Section 33492.15,
that portion of the levied taxes each year by or for noneducational
taxing agencies in excess of that amount shall be allocated to and
when collected shall be paid into a special fund of the redevelopment
agency to pay the principal of and interest on loans, moneys
advanced to, or indebtedness (whether funded, refunded, assumed, or
otherwise) incurred by the redevelopment agency to finance or
refinance, in whole or in part, the redevelopment project. Unless and
until the total assessed valuation of the taxable property in a
redevelopment project exceeds the total assessed value of the taxable
property in that project as shown by the last equalized assessment
roll referred to in subdivision (a), all of the taxes levied and
collected upon the taxable property in the redevelopment project by
or for noneducational taxing agencies shall be paid to the respective
noneducational taxing agencies. When the loans, advances, and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property in
the redevelopment project by or for noneducational taxing agencies
shall be paid to the respective noneducational taxing
                          agencies as taxes on all other property are
paid.
   (c) That portion of the taxes in excess of the amount identified
in subdivision (a) which are attributable to a tax rate levied by a
noneducational 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 noneducational taxing
agency. This subdivision shall only apply to taxes levied to repay
bonded indebtedness approved by the voters of the noneducational
taxing agency.
   (d) It is the intent of the Legislature in enacting this section
and the amendments to Section 33670 made by the act adding this
section to prohibit the use of Section 33670 to finance community
redevelopment pursuant to any redevelopment plan or plan amendment
that is adopted on or after January 1, 2012. It is the intent of the
Legislature that this section provides an alternate method for
financing community redevelopment, within the meaning of Section 16
of Article XVI of the California Constitution, for redevelopment
plans and plan amendments adopted on or after January 1, 2012, that
exclude property taxes levied by or for school districts, community
college districts, or county offices of education. Except as
specifically provided in this article in regard to plan amendments
that add additional territory to an existing redevelopment plan, it
is not the intent of the Legislature that this article limit or
otherwise apply to the financing of community redevelopment pursuant
to a redevelopment plan adopted prior to January 1, 2012.
   33679.4.  Notwithstanding any other law, for purposes of any
redevelopment plan or plan amendment subject to this article:
   (a) A reference in this part to Section 33670 shall be construed
to be a reference to Section 33679.3.
   (b) Sections 33328.1, 33360.5, 33607.5, and 33676 shall not apply.

   33679.5.  (a) Upon the written request of a redevelopment agency
for the purpose of assisting the agency, the county auditor or other
officer responsible for allocation of tax revenues pursuant to
Section 33679.3 shall prepare a statement each fiscal year for each
redevelopment project area and each area added to a redevelopment
project area by amendment, which provides for all the following:
   (1) The total taxable assessed value of secured, unsecured, and
state-assessed railroad and nonoperating, nonunitary property.
   (2) The total taxable assessed value used by the county auditor to
determine the division of taxes required by subdivision (a) of
Section 33679.3.
   (3) The total taxable assessed value used by the county auditor to
determine the division of taxes required by subdivision (b) of
Section 33679.3.
   (4) The estimated amount of taxes calculated pursuant to
subdivision (b) of Section 33679.3, as adjusted by subdivision (c) of
Section 33679.3 and subdivision (a) of Section 33679.6. The
statement shall specify the gross amount of tax-increment revenue
allocated to the agency and any payments to other noneducational
taxing entities that are deducted from the gross amount allocated.
   (5) The estimated amount of taxes to be allocated pursuant to
subdivisions (c) and (d) of Section 100 of the Revenue and Taxation
Code.
   (b) If requested to provide a statement pursuant to subdivision
(a), the county auditor shall deliver each statement to the
respective redevelopment agencies receiving property tax revenue on
or before November 30 of each year.
   (c) (1) Upon the request of a redevelopment agency pursuant to
subdivision (a), and concurrently with the disbursement of those
property tax revenues, the county auditor shall prepare a statement
which provides the amount of disbursement made pursuant to all of the
following:
   (A) Section 33679.3.
   (B) Section 100 of the Revenue and Taxation Code.
   (C) Supplemental property tax revenues allocated pursuant to
Sections 75 to 75.80 of the Revenue and Taxation Code, inclusive.
   (2) The statement provided pursuant to this subdivision shall also
include corrections, updates, or adjustments, if any, to the
property tax revenue amounts and taxable assessed values reported
pursuant to subdivision (a) of Section 33679.3.
   (d) The county auditor shall also provide to a redevelopment
agency, no later than 30 days after the receipt of a written request
from that agency, information or clarification with respect to any
statement issued pursuant to this section.
   (e) If any redevelopment agency requests a statement or
information pursuant to this section, the agency shall reimburse the
county auditor for all actual and reasonable costs incurred.
   33679.6.  (a) Prior to the adoption by the legislative body of a
redevelopment plan providing for tax increment financing pursuant to
Section 33679.3, any affected taxing agency may elect to be
allocated, in addition to the portion of taxes allocated to the
affected taxing agency pursuant to subdivision (a) of Section
33679.3, all or any portion of the tax revenues allocated to the
agency pursuant to subdivision (b) of Section 33679.3 attributable to
increases in the rate of tax imposed for the benefit of the taxing
agency which levy occurs after the tax year in which the ordinance
adopting the redevelopment plan becomes effective.
   (b) The governing body of any affected taxing agency electing to
receive allocation of taxes pursuant to this section in addition to
taxes allocated to it pursuant to subdivision (a) of Section 33679.3
shall adopt a resolution to that effect and transmit the resolution,
prior to the adoption of the redevelopment plan, to (1) the
legislative body, (2) the agency, and (3) the official or officials
performing the functions of levying and collecting taxes for the
affected taxing agency. Upon receipt by the official or officials of
the resolution, allocation of taxes pursuant to this section to the
affected taxing agency which has elected to receive the allocation
pursuant to this section by the adoption of the resolution and
allocation of taxes pursuant to this section shall be made at the
time or times allocations are made pursuant to subdivision (a) of
Section 33679.3.
   (c) An affected taxing agency, at any time after the adoption of
the resolution, may elect not to receive all or any portion of the
additional allocation of taxes pursuant to this section by rescinding
the resolution or by amending the same, as the case may be, and
giving notice thereof to the legislative body, the agency, and the
official or officials performing the functions of levying and
collecting taxes for the affected taxing agency. After receipt of a
notice by the official or officials that an affected taxing agency
has elected not to receive all or a portion of the additional
allocation of taxes by rescission or amendment of the resolution, any
allocation of taxes to the affected taxing agency required to be
made pursuant to this section shall not thereafter be made but shall
be allocated to the agency, and the affected taxing agency shall
thereafter be allocated only the portion of taxes provided for in
subdivision (a) of Section 33679.3. After receipt of a notice by the
official or officials that an affected taxing agency has elected to
receive additional tax revenues attributable to only a portion of the
increases in the rate of tax, only that portion of the tax revenues
shall thereafter be allocated to the affected taxing agency in
addition to the portion of taxes allocated pursuant to subdivision
(a) of Section 33679.3, and the remaining portion thereof shall be
allocated to the agency.
   33679.7.  (a) (1) All the amounts calculated pursuant to this
section shall be calculated after the amount required to be deposited
in the Low and Moderate Income Housing Fund pursuant to Sections
33334.2, 33334.3, and 33334.6 has been deducted from the total amount
of tax increment funds received by the agency in the applicable
fiscal year.
   (2) The payments made pursuant to this section shall be in
addition to any amounts the affected taxing entities receive pursuant
to subdivision (a) of Section 33679.3. The payments made pursuant to
this section to the affected taxing entities, including the
community, shall be allocated among the affected taxing entities,
including the community if the community elects to receive payments,
in proportion to the percentage share of property taxes of each
affected taxing entity, including the community, receives during the
fiscal year the funds are allocated, which percentage share shall be
determined without regard to (A) any amounts allocated to a city, a
city and county, or a county pursuant to Sections 97.68 and 97.70 of
the Revenue and Taxation Code, (B) any allocation reductions to a
city, a city and county, a county, a special district, or a
redevelopment agency pursuant to Sections 97.71, 97.72, and 97.73 of
the Revenue and Taxation Code and Section 33681.12, and (C) any
amounts allocated to a school district, community college district,
or county office of education. The agency shall reduce its payments
pursuant to this section to an affected taxing entity by any amount
the agency has paid, directly or indirectly, pursuant to Section
33445, 33445.5, 33445.6, 33446, or any other law other than this
section for, or in connection with, a public facility owned or leased
by that affected taxing agency, except for any amounts that are
unrelated to the specific project area or amendment governed by this
section. For purposes of calculating the allocation of payments made
to affected taxing entities pursuant to this section, an Educational
Revenue Augmentation Fund created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code is not an affected taxing entity.
   (b) Commencing with the first fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, including the community if
the community elects to receive a payment, an amount equal to 25
percent of the tax increments received by the agency after the amount
required to be deposited in the Low and Moderate Income Housing Fund
has been deducted. In any fiscal year in which the agency receives
tax increments, the community that has adopted the redevelopment
project area may elect to receive the amount authorized by this
paragraph. If the community elects not to receive the amount
authorized by this subdivision, the portion of the payment made
pursuant to this subdivision that would otherwise have been
calculated for and paid to the community based on the community's
proportionate share of property tax revenues shall remain with the
agency.
   (c) Commencing with the 11th fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivision (b) and after deducting the amount allocated
to the Low and Moderate Income Housing Fund, an amount equal to 21
percent of an amount, which shall be calculated by applying the tax
rate for the affected taxing entities against the amount by which the
assessed value of the taxable property in the redevelopment project,
as shown upon the assessment roll of the county last equalized on
the current year anniversary of the effective date of the ordinance
adopting the redevelopment plan or plan amendment, as applicable,
exceeds the assessed value of the taxable property in the
redevelopment project, as shown upon the assessment roll of the
county last equalized on the 10th anniversary of the effective date
of the ordinance adopting the redevelopment plan or plan amendment.
The portion of the payment made pursuant to this subdivision that
would otherwise have been calculated for and paid to the community,
based on the community's proportionate share of property tax
revenues, shall instead be allocated among the other affected taxing
entities based on their respective percentage shares calculated in
accordance with paragraph (2) of subdivision (a), except that the
calculation shall be based on the percentage share of property taxes
that each affected taxing entity, excluding the community, receives
during the fiscal year that the funds are allocated.
   (d) Commencing with the 31st fiscal year in which the agency
receives tax increments and continuing through the last fiscal year
in which the agency receives tax increments, a redevelopment agency
shall pay to the affected taxing entities, other than the community
which has adopted the project, in addition to the amounts paid
pursuant to subdivisions (b) and (c) and after deducting the amount
allocated to the Low and Moderate Income Housing Fund, an amount
equal to 14 percent of an amount, which shall be calculated by
applying the tax rate for the affected taxing entities against the
amount by which the assessed value of the taxable property in the
redevelopment project, as shown upon the assessment roll of the
county last equalized on the current year anniversary of the
effective date of the ordinance adopting the redevelopment plan or
plan amendment exceeds the assessed value of the taxable property in
the redevelopment project, as shown upon the assessment roll of the
county last equalized on the 30th year anniversary of the effective
date of the ordinance adopting the redevelopment plan or plan
amendment. The portion of the payment made pursuant to this
subdivision that would otherwise have been calculated for and paid to
the community, based on the community's proportionate share of
property tax revenues, shall instead be allocated among the other
affected taxing entities based on their respective percentage shares
calculated in accordance with paragraph (2) of subdivision (a),
except that the calculation shall be based on the percentage share of
property taxes that each affected taxing entity, excluding the
community, receives during the fiscal year that the funds are
allocated.
   (e) (1) Prior to incurring any loans, bonds, or other
indebtedness, except loans or advances from the community, the agency
may subordinate to the loans, bonds, or other indebtedness the
amount required to be paid to an affected taxing entity by this
section, provided that the affected taxing entity has approved these
subordinations pursuant to this subdivision.
   (2) At the time the agency requests an affected taxing entity to
subordinate the amount to be paid to it, the agency shall provide the
affected taxing entity with substantial evidence that sufficient
funds will be available to pay both the debt service and the payments
required by this section, when due.
   (3) Within 45 days after receipt of the agency's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the agency will not be able to pay the debt payments and the
amount required to be paid to the affected taxing entity. If the
affected taxing entity does not act within 45 days after receipt of
the agency's request, the request to subordinate shall be deemed
approved and shall be final and conclusive.
   (f) (1) The Legislature finds and declares both of the following:
   (A) The payments made pursuant to this section are necessary in
order to alleviate the financial burden and detriment that affected
taxing entities may incur as a result of the adoption of a
redevelopment plan, and payments made pursuant to this section will
benefit redevelopment project areas.
   (B) The payments made pursuant to this section are the exclusive
payments that are required to be made by a redevelopment agency to
affected taxing entities during the term of a redevelopment plan.
   (2) Notwithstanding any other law, a redevelopment agency shall
not be required, either directly or indirectly, as a measure to
mitigate a significant environmental effect or as part of any
settlement agreement or judgment brought in any action to contest the
validity of a redevelopment plan pursuant to Section 33501, to make
any other payments to affected taxing entities, or to pay for public
facilities that will be owned or leased to an affected taxing entity.

  SEC. 19.  (a) By January 1, 2013, the Controller shall issue
regulations revising and consolidating reporting for redevelopment
agencies. The goal of the regulations shall be to do all of the
following: (1) unify and simplify the reporting requirements of
redevelopment agencies; (2) focus reporting requirements on
information that will be of the greatest utility in monitoring the
activities of redevelopment agencies and their compliance with the
provisions of the Community Redevelopment Law; and (3) produce
consistent and comparable data using a user-friendly, self-checking
electronic data reporting system. The Controller shall consult with
an advisory committee comprised of persons nominated by the
department, the Legislative Analyst, the California Society of
Certified Public Accountants, the California Redevelopment
Association, and any other authorities in the field that the
Controller deems necessary and appropriate.
   (b) In connection with issuing the regulations described in
subdivision (a), by January 1, 2013, the Controller shall prepare or
cause to be prepared a management study that evaluates the reporting
of redevelopment agencies and recommends any new management systems,
including required technology, needed to implement the proposed
regulations.
   SEC. 20.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to preserve housing funds that are needed to house
elderly individuals and working families, it is necessary that this
act take effect immediately.