Chapter 5. Duties Of The Auditor-controller of California Health And Safety Code >> Division 24. >> Part 1.85. >> Chapter 5.
(a) (1) The county auditor-controller shall conduct or cause
to be conducted an agreed-upon procedures audit of each
redevelopment agency in the county that is subject to this part, to
be completed by October 1, 2012.
(2) The purpose of the audits shall be to establish each
redevelopment agency's assets and liabilities, to document and
determine each redevelopment agency's passthrough payment obligations
to other taxing entities, and to document and determine both the
amount and the terms of any indebtedness incurred by the
redevelopment agency pursuant to the initial Recognized Obligation
Payment Schedule.
(3) The county auditor-controller may charge the Redevelopment
Property Tax Trust Fund for any costs incurred by the county
auditor-controller pursuant to this part.
(b) By October 5, 2012, the county auditor-controller shall
provide the Controller's office and the Department of Finance a copy
of all audits performed pursuant to this section. The county
auditor-controller shall maintain a copy of all documentation and
working papers for use by the Controller.
(c) (1) The county auditor-controller shall determine the amount
of property taxes that would have been allocated to each
redevelopment agency in the county had the redevelopment agency not
been dissolved pursuant to the operation of the act adding this part.
These amounts are deemed property tax revenues within the meaning of
subdivision (a) of Section 1 of Article XIII A of the California
Constitution and are available for allocation and distribution in
accordance with the provisions of the act adding this part. The
county auditor-controller shall calculate the property tax revenues
using current assessed values on the last equalized roll on August
20, pursuant to Section 2052 of the Revenue and Taxation Code, and
pursuant to statutory formulas or contractual agreements with other
taxing entities, as of the effective date of this section, and shall
deposit that amount in the Redevelopment Property Tax Trust Fund.
(2) Each county auditor-controller shall administer the
Redevelopment Property Tax Trust Fund for the benefit of the holders
of former redevelopment agency enforceable obligations and the taxing
entities that receive passthrough payments and distributions of
property taxes pursuant to this part.
(3) In connection with the allocation and distribution by the
county auditor-controller of property tax revenues deposited in the
Redevelopment Property Tax Trust Fund, in compliance with this part,
the county auditor-controller shall prepare estimates of amounts of
property tax to be allocated and distributed and the amounts of
passthrough payments to be made in the upcoming six-month period, and
provide those estimates to both the entities receiving the
distributions and the Department of Finance, no later than October 1
and April 1 of each year.
(4) Each county auditor-controller shall disburse proceeds of
asset sales or reserve balances, which have been received from the
successor entities pursuant to Sections 34177 and 34187, to the
taxing entities. In making such a distribution, the county
auditor-controller shall utilize the same methodology for allocation
and distribution of property tax revenues provided in Section 34188.
(d) By October 1, 2012, the county auditor-controller shall report
the following information to the Controller's office and the
Director of Finance:
(1) The sums of property tax revenues remitted to the
Redevelopment Property Tax Trust Fund related to each former
redevelopment agency.
(2) The sums of property tax revenues remitted to each agency
under paragraph (1) of subdivision (a) of Section 34183.
(3) The sums of property tax revenues remitted to each successor
agency pursuant to paragraph (2) of subdivision (a) of Section 34183.
(4) The sums of property tax revenues paid to each successor
agency pursuant to paragraph (3) of subdivision (a) of Section 34183.
(5) The sums paid to each city, county, and special district, and
the total amount allocated for schools pursuant to paragraph (4) of
subdivision (a) of Section 34183.
(6) Any amounts deducted from other distributions pursuant to
subdivision (b) of Section 34183.
(e) A county auditor-controller may charge the Redevelopment
Property Tax Trust Fund for the costs of administering the provisions
of this part.
(f) The Controller may audit and review any county
auditor-controller action taken pursuant to the act adding this part.
As such, all county auditor-controller actions shall not be
effective for three business days, pending a request for review by
the Controller. In the event that the Controller requests a review of
a given county auditor-controller action, he or she shall have 10
days from the date of his or her request to approve the county
auditor-controller's action or return it to the county
auditor-controller for reconsideration and the county
auditor-controller's action shall not be effective until approved by
the Controller. In the event that the Controller returns the county
auditor-controller's action to the county auditor-controller for
reconsideration, the county auditor-controller must resubmit the
modified action for Controller approval and the modified county
auditor-controller's action shall not become effective until approved
by the Controller.
(a) The Orange County Auditor Controller shall allocate
property tax revenues attributable to the El Toro Project Area
between the Redevelopment Property Tax Fund established for the
former Orange County Development Agency and the Redevelopment
Property Tax Trust Fund established for the former Lake Forest
Redevelopment Agency as provided in subdivision (b).
(b) (1) All property tax revenues deposited by the Orange County
Auditor Controller pursuant to paragraph (1) of subdivision (c) of
Section 34182 during each fiscal year that are attributable to the
Neighborhood Preservation and Development Project Area, including the
El Toro Project Area, shall initially be placed into the
Redevelopment Property Tax Trust Fund for the former Orange County
Development Agency.
(2) After deducting the administrative costs allowed under Section
34182 and Section 95.3 of the Revenue and Taxation Code, as
described in subdivision (a) of Section 34183, and remitting the
amounts required under paragraph (1) of subdivision (a) of Section
34183, the Orange County Auditor Controller shall transfer the sum of
both of the following, determined for the entire fiscal year, into
the redevelopment obligation retirement fund of the successor agency
to the Orange County Development Agency for distribution as required
by law and applicable bond covenants:
(A) The amount required by Section 33670.9.
(B) All other obligations secured by a prior claim on, or pledge
of, moneys in the Redevelopment Property Tax Trust Fund of the former
Orange County Development Agency, including tax allocation bonds, as
applicable, that are payable on a basis prior to any transfer to the
former Lake Forest Redevelopment Agency pursuant to the transfer
agreement or pursuant to Part 1.8 (commencing with Section 34161),
this part, or other law.
(3) After depositing the amount described in paragraph (2) into
the redevelopment obligation retirement fund of the successor agency
to the Orange County Development Agency, the Orange County Auditor
Controller shall deposit into the Redevelopment Property Tax Trust
Fund established for the former Lake Forest Redevelopment Agency the
transfer agreement amount, as set forth in the applicable Recognized
Obligation Payment Schedule submitted by the successor agency to the
Orange County Development Agency and approved by the Department of
Finance, to the extent moneys are available from the portion of the
former Orange County Development Agency's Redevelopment Property Tax
Trust Fund attributable to the El Toro Project Area.
(4) The payment described in paragraph (3) shall be paid prior to
all payments listed on the recognized obligation payment schedule of
the successor agency to the former Orange County Development Agency
other than the payments described in paragraph (2), unless otherwise
required by statute or applicable bond covenants.
(c) This section shall not be construed to affect the obligations
of the successor agency to the Orange County Development Agency under
Section 33670.9. Such obligations shall be prior to any transfer of
property tax revenues directed by this section and this section shall
be interpreted and construed in a manner consistent with Section
33670.9.
(d) This section is intended to implement the transfer agreement
in light of the enactment of Part 1.8 (commencing with Section 34161)
and this part and, except as expressly set forth herein, this
section is not intended to alter the transfer agreement, which shall
continue in full force and effect in accordance with its terms.
(e) For purposes of this section, both of the following
definitions shall apply:
(1) "El Toro Project Area" means the portion of the former Orange
County Development Agency's Neighborhood Preservation and Development
Project Area that was transferred to the Lake Forest Redevelopment
Agency pursuant to the transfer agreement and Sections 33216 and
33216.1.
(2) "Transfer agreement" means the Agreement to Transfer
Territorial Jurisdiction of a Noncontiguous Portion of a
Redevelopment Project Area dated as of July 6, 1999, entered into
among the County of Orange, the Orange County Development Agency, the
City of Lake Forest, the Lake Forest Redevelopment Agency, and the
City of Laguna Hills.
(3) "Transfer agreement amount" means the amount of the payment
required to be made by the former Orange County Development Agency to
the former Lake Forest Redevelopment Agency pursuant to the transfer
agreement, less the amount of passthrough payments attributable to
the El Toro Project Area that are disbursed by the Orange County
Auditor Controller pursuant to paragraph (1) of subdivision (a) of
Section 34183.
A county auditor-controller may review the Recognized
Obligation Payment Schedules and object to the inclusion of any items
that are not demonstrated to be enforceable obligations and may
object to the funding source proposed for any items. This review may
take place prior to the submission of the Recognized Obligation
Payment Schedule to the oversight board or subsequent to oversight
board action. The county auditor-controller shall promptly transmit
notice of any of those objections to the successor agency, the
oversight board, and the Department of Finance. Notice shall be given
at least 60 days prior to an allocation date specified in Section
34183, except that for the January 1, 2013 to June 30, 2013
Recognized Obligation Payment Schedule, notice shall be given no
later than October 1, 2012. If an oversight board disputes the
finding of the county auditor-controller, it may refer the matter to
the Department of Finance for a determination of what will be
approved for inclusion in the Recognized Obligation Payment Schedule.
(a) Notwithstanding any other law, from February 1, 2012, to
July 1, 2012, and for each fiscal year thereafter, the county
auditor-controller shall, after deducting administrative costs
allowed under Section 34182 and Section 95.3 of the Revenue and
Taxation Code, allocate moneys in each Redevelopment Property Tax
Trust Fund as follows:
(1) (A) Subject to any prior deductions required by subdivision
(b), first, the county auditor-controller shall remit from the
Redevelopment Property Tax Trust Fund to each local agency and school
entity an amount of property tax revenues in an amount equal to that
which would have been received under Section 33401, 33492.140,
33607, 33607.5, 33607.7, or 33676, as those sections read on January
1, 2011, or pursuant to any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, that would be in force during that fiscal year,
had the redevelopment agency existed at that time. The amount of the
payments made pursuant to this paragraph shall be calculated solely
on the basis of passthrough payment obligations, existing prior to
the effective date of this part and continuing as obligations of
successor entities, shall occur no later than May 16, 2012, and no
later than June 1, 2012, and each January 2 and June 1 thereafter.
Notwithstanding subdivision (e) of Section 33670, that portion of the
taxes in excess of the amount identified in subdivision (a) of
Section 33670, which are attributable to a tax rate levied by a
taxing entity 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 entity. The
amount of passthrough payments computed pursuant to this section,
including any passthrough agreements, shall be computed as though the
requirement to set aside funds for the Low and Moderate Income
Housing Fund was still in effect.
(B) Notwithstanding subdivision (b) of Section 33670, that portion
of the taxes in excess of the amount identified in subdivision (a)
of Section 33670, which are attributable to a property tax rate
approved by the voters of a city, county, city and county, or special
district to make payments in support of pension programs or in
support of capital projects and programs related to the State Water
Project, and levied in addition to the property tax rate limited by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution, shall be allocated to, and when collected shall be paid
into, the fund of that taxing entity, unless the amounts in question
are pledged as security for the payment of any indebtedness
obligation, as defined in subdivision (e) of Section 34171, and
needed for payment thereof. Notwithstanding any other law, all
allocations of revenues above one cent ($0.01) derived from the
imposition of a property tax rate, approved by the voters of a city,
county, city and county, or special district to make payments in
support of pension programs or in support of capital projects and
programs related to the State Water Project and levied in addition to
the property tax rate limited by subdivision (a) of Section 1 of
Article XIII A of the California Constitution, made by any county
auditor-controller prior to June 15, 2015, are valid and shall not be
affected by this section. A city, county, city and county, county
auditor-controller, successor agency, department, or affected taxing
entity shall not be subject to any claim for money, damages, or
reallocated revenues based on any allocation of such revenues above
one cent ($0.01) prior to June 15, 2015.
(2) Second, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for payments listed in its
Recognized Obligation Payment Schedule for the six-month fiscal
period beginning January 1, 2012, and July 1, 2012, and each January
2 and June 1 thereafter, in the following order of priority:
(A) Debt service payments scheduled to be made for tax allocation
bonds.
(B) Payments scheduled to be made on revenue bonds, but only to
the extent the revenues pledged for them are insufficient to make the
payments and only if the agency's tax increment revenues were also
pledged for the repayment of the bonds.
(C) Payments scheduled for other debts and obligations listed in
the Recognized Obligation Payment Schedule that are required to be
paid from former tax increment revenue.
(3) Third, on June 1, 2012, and each January 2 and June 1
thereafter, to each successor agency for the administrative cost
allowance, as defined in Section 34171, for administrative costs set
forth in an approved administrative budget for those payments
required to be paid from former tax increment revenues.
(4) Fourth, on June 1, 2012, and each January 2 and June 1
thereafter, any moneys remaining in the Redevelopment Property Tax
Trust Fund after the payments and transfers authorized by paragraphs
(1) to (3), inclusive, shall be distributed to local agencies and
school entities in accordance with Section 34188. The only exception
shall be for moneys remaining in the Redevelopment Property Tax Trust
Fund that are attributable to a property tax rate approved by the
voters of a city, county, city and county, or special district to
make payments in support of pension programs or in support of capital
projects and programs related to the State Water Project, and levied
in addition to the property tax rate limited by subdivision (a) of
Section I of Article XIII A of the California Constitution. The
county auditor-controller shall return these particular remaining
moneys to the levying taxing entity.
(b) If the successor agency reports, no later than April 1, 2012,
and May 1, 2012, and each December 1 and May 1 thereafter, to the
county auditor-controller that the total amount available to the
successor agency from the Redevelopment Property Tax Trust Fund
allocation to that successor agency's Redevelopment Obligation
Retirement Fund, from other funds transferred from each redevelopment
agency, and from funds that have or will become available through
asset sales and all redevelopment operations, are insufficient to
fund the payments required by paragraphs (1) to (3), inclusive, of
subdivision (a) in the next six-month fiscal period, the county
auditor-controller shall notify the Controller and the Department of
Finance no later than 10 days from the date of that notification. The
county auditor-controller shall verify whether the successor agency
will have sufficient funds from which to service debts according to
the Recognized Obligation Payment Schedule and shall report the
findings to the Controller. If the Controller concurs that there are
insufficient funds to pay required debt service, the amount of the
deficiency shall be deducted first from the amount remaining to be
distributed to taxing entities pursuant to paragraph (4), and if that
amount is exhausted, from amounts available for distribution for
administrative costs in paragraph (3). If an agency, pursuant to the
provisions of Section 33492.15, 33492.72, 33607.5, 33671.5, 33681.15,
or 33688 or as expressly provided in a passthrough agreement entered
into pursuant to Section 33401, made passthrough payment obligations
subordinate to debt service payments required for enforceable
obligations, funds for servicing bond debt may be deducted from the
amounts for passthrough payments under paragraph (1), as provided in
those sections, but only to the extent that the amounts remaining to
be distributed to taxing entities pursuant to paragraph (4) and the
amounts available for distribution for administrative costs in
paragraph (3) have all been exhausted.
(c) The county treasurer may loan any funds from the county
treasury to the Redevelopment Property Tax Trust Fund of the
successor agency for the purpose of paying an item approved on the
Recognized Obligation Payment Schedule at the request of the
Department of Finance that are necessary to ensure prompt payments of
redevelopment agency debts. An enforceable obligation is created for
repayment of those loans.
(d) The Controller may recover the costs of audit and oversight
required under this part from the Redevelopment Property Tax Trust
Fund by presenting an invoice therefor to the county
auditor-controller who shall set aside sufficient funds for and
disburse the claimed amounts prior to making the next distributions
to the taxing entities pursuant to Section 34188. Subject to the
approval of the Director of Finance, the budget of the Controller may
be augmented to reflect the reimbursement, pursuant to Section 28.00
of the Budget Act.
(e) Within 10 days of each distribution of property tax, the
county auditor-controller shall provide a report to the department
regarding the distribution for each successor agency that includes
information on the total available for allocation, the passthrough
amounts and how they were calculated, the amounts distributed to
successor agencies, and the amounts distributed to taxing entities in
a manner and form specified by the department. This reporting
requirement shall also apply to distributions required under
subdivision (b) of Section 34183.5.
(a) The Legislature hereby finds and declares that due to
the delayed implementation of this part due to the California Supreme
Court's ruling in the case California Redevelopment Association v.
Matosantos (2011) 53 Cal.4th 231, some disruption to the intended
application of this part and other law with respect to passthrough
payments may have occurred.
(1) If a redevelopment agency or successor agency did not pay any
portion of an amount owed for the 2011-12 fiscal year to an affected
taxing entity pursuant to Section 33401, 33492.140, 33607, 33607.5,
33607.7, or 33676, or pursuant to any passthrough agreement entered
into before January 1, 1994, between a redevelopment agency and an
affected taxing entity, and to the extent the county
auditor-controller did not remit the amounts owed for passthrough
payments during the 2011-12 fiscal year, the county
auditor-controller shall make the required payments to the taxing
entities owed passthrough payments and shall reduce the amounts to
which the successor agency would otherwise be entitled pursuant to
paragraph (2) of subdivision (a) of Section 34183 at the next
allocation of property tax under this part, subject to subdivision
(b) of Section 34183. If the amount of available property tax
allocation to the successor agency is not sufficient to make the
required payment, the county auditor-controller shall continue to
reduce allocations to the successor agency under paragraph (2) of
subdivision (a) of Section 34183 until the time that the owed amount
is fully paid. Alternatively, the county auditor-controller may
accept payment from the successor agency's reserve funds for payments
of passthrough payments owed as defined in this subdivision.
(2) If a redevelopment agency did not pay any portion of the
amount owed for the 2011-12 fiscal year to an affected taxing entity
pursuant to Section 33401, 33492.140, 33607, 33607.5, 33607.7, or
33676, or pursuant to any passthrough agreement entered into before
January 1, 1994, between a redevelopment agency and an affected
taxing entity, but the county auditor-controller did pay the
difference that was owing, the county auditor-controller shall deduct
from the next allocation of property tax to the successor agency
under paragraph (2) of subdivision (a) of Section 34183, the amount
of the payment made on behalf of the successor agency by the county
auditor-controller, not to exceed one-half the amount of passthrough
payments owed for the 2011-12 fiscal year. If the amount of available
property tax allocation to the successor agency is not sufficient to
make the required deduction, the county auditor-controller shall
continue to reduce allocations to the successor agency under
paragraph (2) of subdivision (a) of Section 34183 until the time that
the amount is fully deducted. Alternatively, the auditor-controller
may accept payment from the successor agency's reserve funds for
deductions of passthrough payments owed as defined in this
subdivision. Amounts reduced from successor agency payments under
this paragraph are available for the purposes of paragraphs (2) to
(4), inclusive, of subdivision (a) of Section 34183 for the six-month
period for which the property tax revenues are being allocated.
(b) In recognition of the fact that county auditor-controllers
were unable to make the payments required by paragraph (4) of
subdivision (a) of Section 34183 for the period January 1, 2012,
through June 30, 2012, on January 16, 2012, due to the California
Supreme Court's ruling in the case of California Redevelopment
Association v. Matosantos (2011) 53 Cal.4th 231, in addition to
taking the actions specified in Section 34183 with respect to the
June 1 property tax allocations, county auditor-controllers should
have made allocations as provided in paragraph (1).
(1) From the allocations made on June 1, 2012, for the Recognized
Obligation Payment Schedule covering the period July 1, 2012, through
December 31, 2012, deduct from the amount that otherwise would be
deposited in the Redevelopment Property Tax Trust Fund on behalf of
the successor agency an amount equivalent to the amount that each
affected taxing entity was entitled to pursuant to paragraph (4) of
subdivision (a) of Section 34183 for the period January 1, 2012,
through June 30, 2012. The amount to be retained by taxing entities
pursuant to paragraph (4) of subdivision (a) of Section 34183 for the
January 1, 2012, through June 30, 2012, period is determined based
on the Recognized Obligation Payment Schedule approved by the
Department of Finance pursuant to subdivision (h) of Section 34179
and any amount determined to be owed pursuant to this subdivision.
Any amounts so computed shall not be offset by any shortages in
funding for recognized obligations for the period covering July 1,
2012, through December 31, 2012.
(2) (A) If an affected taxing entity has not received the full
amount to which it was entitled pursuant to paragraph (4) of
subdivision (a) of Section 34183 of the property tax distributed for
the period January 1, 2012, through June 30, 2012, and paragraph (1),
no later than July 9, 2012, the county auditor-controller shall
determine the amount, if any, that is owed by each successor agency
to taxing entities and send a demand for payment from the funds of
the successor agency for the amount owed to taxing entities if it has
distributed the June 1, 2012, allocation to the successor agencies.
No later than July 12, 2012, successor agencies shall make payment of
the amounts demanded to the county auditor-controller for deposit
into the Redevelopment Property Tax Trust Fund and subsequent
distribution to taxing entities. No later than July 16, 2012, the
county auditor-controller shall make allocations of all money
received by that date from successor agencies in amounts owed to
taxing entities under this paragraph to taxing entities in accordance
with Section 34183. The county auditor-controller shall make
allocations of any money received after that date under this
paragraph within five business days of receipt. These duties are not
discretionary and shall be carried out with due diligence.
(B) If a county auditor-controller fails to determine the amounts
owed to taxing entities and present a demand for payment by July 9,
2012, to the successor agencies, the Department of Finance or any
affected taxing entity may request a writ of mandate to require the
county auditor-controller to immediately perform this duty. Such
actions may be filed only in the County of Sacramento and shall have
priority over other civil matters. Any county in which the county
auditor-controller fails to perform the duties under this paragraph
shall be subject to a civil penalty of 10 percent of the amount owed
to taxing entities plus 1.5 percent of the amount owed to taxing
entities for each month that the duties are not performed. The civil
penalties shall be payable to the taxing entities under Section
34183. Additionally, any county in which the county
auditor-controller fails to make the required determinations and
demands for payment under this paragraph by July 9, 2012, or fails to
distribute the full amount of funds received from successor agencies
as required by this paragraph shall not receive the distribution of
sales and use tax scheduled for July 18, 2012, or any subsequent
payment, up to the amount owed to taxing entities, until the county
auditor-controller performs the duties required by this paragraph.
(C) If a successor agency fails to make the payment demanded under
subparagraph (A) by July 12, 2012, the Department of Finance or any
affected taxing entity may file for a writ of mandate to require the
successor agency to immediately make this payment. Such actions may
be filed only in the County of Sacramento and shall have priority
over other civil matters. Any successor agency that fails to make
payment by July 12, 2012, under this paragraph shall be subject to a
civil penalty of 10 percent of the amount owed to taxing entities
plus one and one-half percent of the amount owed to taxing entities
for each month that the payments are not made. Additionally, the city
or county or city and county that created the redevelopment agency
shall also be subject to a civil penalty of 10 percent of the amount
owed to taxing entities plus 1.5 percent of the amount owed to taxing
entities for each month the payment is late. The civil penalties
shall be payable to the taxing entities under Section 34183. If the
Department of Finance finds that the imposition of penalties will
jeopardize the payment of enforceable obligations it may request the
court to waive some or all of the penalties. A successor agency that
does not pay the amount required under this subparagraph by July 12,
2012, shall not pay any obligations other than bond debt service
until full payment is made to the county auditor-controller.
Additionally, any city, county or city and county that created the
redevelopment agency that fails to make the required payment under
this paragraph by July 12, 2012, shall not receive the distribution
of sales and use tax scheduled for July 18, 2012, or any subsequent
payment, up to the amount owed to taxing entities, until the payment
required by this paragraph is made.
(D) The Legislature hereby finds and declares that time is of the
essence. Funds that should have been received and were expected and
spent in anticipation of receipt by community colleges, schools,
counties, cities, and special districts have not been received
resulting in significant fiscal impact to the state and taxing
entities. Continued delay and uncertainty whether funds will be
received warrants the availability of extraordinary relief as
authorized herein.
(3) If an affected taxing entity has not received the full amount
to which it was entitled pursuant to paragraph (4) of subdivision (a)
of Section 34183 for the period January 1, 2012, through June 30,
2012, and paragraph (1), the county auditor-controller shall reapply
paragraph (1) to each subsequent property tax allocation until such
time as the affected taxing entity has received the full amount to
which it was entitled pursuant to paragraph (4) of subdivision (a) of
Section 34183 for the period January 1, 2012, through June 30, 2012.
Commencing on June 1, 2012, and on each January 2 and June 1
thereafter, the county auditor-controller shall transfer, from the
Redevelopment Property Tax Trust Fund of each successor agency into
the Redevelopment Obligation Retirement Fund of that agency, an
amount of property tax revenues equal to that specified in the
Recognized Obligation Payment Schedule for that successor agency as
payable from the Redevelopment Property Tax Trust Fund subject to the
limitations of subdivision (l) of Section 34177 and Section 34183.
(a) (1) Differences between actual payments and past
estimated obligations on recognized obligation payment schedules
shall be reported in subsequent Recognized Obligation Payment
Schedules and shall adjust the amount to be transferred to the
Redevelopment Obligation Retirement Fund pursuant to this part. These
estimates and accounts, as well as cash balances, shall be subject
to review by the county auditor-controller. The county
auditor-controller's review shall be subject to the department's
review and approval.
(2) Audits initiated by the Controller pursuant to this section
prior to July 1, 2015, shall be continued by the Controller and
completed no later than June 30, 2016. Nothing in this section shall
be construed in a manner which precludes, or in any way restricts,
the Controller from conducting audits of successor agencies pursuant
to Section 12410 of the Government Code.
(b) Differences between actual passthrough obligations and
property tax amounts and the amounts used by the county
auditor-controller in determining the amounts to be allocated under
Sections 34183 and 34188 for a prior six-month or annual period,
whichever is applicable, shall be applied as adjustments to the
property tax and passthrough amounts in subsequent periods as they
become known. County auditor-controllers shall not delay payments
under this part to successor agencies or taxing entities based on
pending transactions, disputes, or for any other reason, other than a
court order, and shall use the Recognized Obligation Payment
Schedule approved by the department and the most current data for
passthroughs and property tax available prior to the statutory
distribution dates to make the allocations required on the dates
required.
(c) Commencing on October 1, 2018, and each October 1 thereafter,
the differences between actual payments and past estimated
obligations on a Recognized Obligation Payment Schedule shall be
submitted by the successor agency to the county auditor-controller
for review. The county auditor-controller shall provide to the
department in a manner of the department's choosing a review of the
differences between actual payments and past estimated obligations,
including cash balances, no later than February 1, 2019, and each
February 1 thereafter.
(a) (1) Commencing May 1, 2012, whenever a recognized
obligation that had been identified in the Recognized Payment
Obligation Schedule is paid off or retired, either through early
payment or payment at maturity, the county auditor-controller shall
distribute to the taxing entities, in accordance with the provisions
of the Revenue and Taxation Code, all property tax revenues that were
associated with the payment of the recognized obligation.
(2) Notwithstanding paragraph (1), the department may authorize a
successor agency to retain property tax that otherwise would be
distributed to affected taxing entities pursuant to this subdivision,
to the extent the department determines the successor agency
requires those funds for the payment of enforceable obligations. Upon
making a determination, the department shall provide the county
auditor-controller with information detailing the amounts that it has
authorized the successor agency to retain. Upon determining the
successor agency no longer requires additional funds pursuant to this
subdivision, the department shall notify the successor agency and
the county auditor-controller. The county auditor-controller shall
then distribute the funds in question to the affected taxing entities
in accordance with the provisions of the Revenue and Taxation Code.
(b) When all of the enforceable obligations have been retired or
paid off, all real property has been disposed of pursuant to Section
34181 or 34191.4, and all outstanding litigation has been resolved,
the successor agency shall, within 30 days of meeting the
aforementioned criteria, submit to the oversight board a request,
with a copy of the request to the county auditor-controller, to
formally dissolve the successor agency. The oversight board shall
approve the request within 30 days, and shall submit the request to
the department.
(c) If a redevelopment agency was not allocated property tax
revenue pursuant to either subdivision (b) of Section 16 of Article
XVI of the California Constitution or Section 33670 prior to February
1, 2012, the successor agency shall, no later than November 1, 2015,
submit to the oversight board a request to formally dissolve the
successor agency. The oversight board shall approve this request
within 30 days, and shall submit the request to the department.
(d) The department shall have 30 days to approve or deny a request
submitted pursuant to subdivisions (b) or (c).
(e) When the department has approved a request to formally
dissolve a successor agency, the successor agency shall take both of
the following steps within 100 days of the department's notification:
(1) Dispose of all remaining assets as directed by the oversight
board. Any proceeds from the disposition of assets shall be
transferred to the county auditor-controller for distribution to the
affected taxing entities pursuant to Section 34183.
(2) Notify the oversight board that it has complied with paragraph
(1).
(f) Upon receipt of the notification required in paragraph (2) of
subdivision (e), the oversight board shall verify all obligations
have been retired or paid off, all outstanding litigation has been
resolved, and all remaining assets have been disposed of with any
proceeds remitted to the county auditor-controller for distribution
to the affected taxing entities. Within 14 days of verification, the
oversight board shall adopt a final resolution of dissolution for the
successor agency, which shall be effective immediately. This
resolution shall be submitted to the sponsoring entity, the county
auditor-controller, the State Controller's Office, and the department
by electronic means and in a manner of each entity's choosing.
(g) Subdivisions (b) to (f), inclusive, does not apply to those
entities specifically recognized as already dissolved by the
department by October 1, 2015.
(h) When all enforceable obligations have been retired or paid off
as specified in subdivision (b), all passthrough payment obligations
required pursuant to Sections 33401, 33492.140, 33607, 33607.5,
33607.7, and 33676, or any passthrough agreement between a
redevelopment agency and a taxing entity that was entered into prior
to January 1, 1994, shall cease, and no property tax shall be
allocated to the Redevelopment Property Tax Trust Fund for that
agency. The Legislature finds and declares that this subdivision is
declaratory of existing law.
(i) When a successor agency is finally dissolved under subdivision
(b), with respect to any existing community facilities district
formed by a redevelopment agency, the legislative body of the city or
county that formed the redevelopment agency shall become the
legislative body of the community facilities district, and any
existing obligations of the former redevelopment agency or its
successor agency, in its capacity as the legislative body of the
community facilities district, shall become the obligations of the
new legislative body of the community facilities district. This
subdivision shall not be construed to result in the continued payment
of any of the passthrough payment obligations identified in
subdivision (h).
For all distributions of property tax revenues and other
moneys pursuant to this part, the distribution to each taxing entity
shall be in an amount proportionate to its share of property tax
revenues in the tax rate area in that fiscal year, as follows:
(a) (1) For distributions from the Redevelopment Property Tax
Trust Fund, the share of each taxing entity shall be applied to the
amount of property tax available in the Redevelopment Property Tax
Trust Fund after deducting the amount of any distributions under
paragraphs (2) and (3) of subdivision (a) of Section 34183.
(2) For each taxing entity that receives passthrough payments,
that agency shall receive the amount of any passthrough payments
identified under paragraph (1) of subdivision (a) of Section 34183,
in an amount not to exceed the amount that it would receive pursuant
to this section in the absence of the passthrough agreement. However,
to the extent that the passthrough payments received by the taxing
entity are less than the amount that the taxing entity would receive
pursuant to this section in the absence of a passthrough agreement,
the taxing entity shall receive an additional payment that is
equivalent to the difference between those amounts.
(b) Property tax shares of local agencies shall be determined
based on property tax allocation laws in effect on the date of
distribution, without the revenue exchange amounts allocated pursuant
to Section 97.68 of the Revenue and Taxation Code, and without the
property taxes allocated pursuant to Section 97.70 of the Revenue and
Taxation Code.
(c) The total school share, including passthroughs, shall be the
share of the property taxes that would have been received by school
entities, as defined in subdivision (f) of Section 95 of the Revenue
and Taxation Code, in the jurisdictional territory of the former
redevelopment agency, including, but not limited to, the amounts
specified in Sections 97.68 and 97.70 of the Revenue and Taxation
Code.
(d) This section shall not be construed to increase any
allocations of excess, additional, or remaining funds that would
otherwise have been allocated to cities, counties, cities and
counties, or special districts pursuant to clause (i) of subparagraph
(B) of paragraph (4) of subdivision (d) of Section 97.2, clause (i)
of subparagraph (B) of paragraph (4) of subdivision (d) of Section
97.3, or Article 4 (commencing with Section 98) of Chapter 6 of Part
0.5 of Division 1, of the Revenue and Taxation Code, had this section
not been enacted.
For purposes of a redevelopment agency that becomes
subject to this part pursuant to Section 34195, a date certain
identified in this chapter shall not be subject to Section 34191,
except for dates certain in Section 34182 and references to "October
1, 2011," or to the "operative date of this part." However, for
purposes of those redevelopment agencies, a date certain identified
in this chapter shall be appropriately modified, as necessary to
reflect the appropriate fiscal year or portion of a fiscal year.