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Assembly Committees Pass AB 1585; Floor Vote Likely on Monday

League's Economic Development Task Force Holds Second Meeting

March 22, 2012
AB 1585 (Pérez), which contains numerous policy and technical cleanup to the redevelopment dissolution bill, AB 1x 26, has been rapidly making its way through the Assembly. On Wednesday, the Assembly Local Government Committee heard and passed the bill; earlier today the measure was heard and passed by the Appropriations Committee at a special meeting. The next step will be a likely floor vote in the Assembly on Monday. If approved, the bill will be sent to the Senate. 

Assembly Local Government Hearing

Assembly Member Toni Atkins (D-San Diego), who has been appointed by the Assembly Speaker John Pérez to lead an internal subcommittee of Assembly Democrats organized to address redevelopment-related issues, presented the bill to the committees, as she did last week for the Assembly Housing and Community Development Committee. For more, please see " Speaker Pérez's Redevelopment Dissolution Bill, AB 1585, Passes Assembly Committee."

While numerous housing advocates and representatives of local agencies testified in support of the bill, including League' Legislative Director, Dan Carrigg, opposition appears to be mounting. Representatives from both Santa Clara and Los Angeles counties testified in opposition to provisions of the bill which would expand the definition of enforceable obligations, including the provisions requiring the repayment of loans made by cities to former redevelopment agencies. The representative for Santa Clara County also argued that AB 1585 favors successor agencies over other taxing entities.

Assembly Member Atkins stated at both hearings that she will continue to work with stakeholders, including both Santa Clara and Los Angeles counties, to attempt to resolve concerns. She also stated that the purpose of AB 1585 is not to change the intent of AB 1x 26, but rather to make the dissolution of former redevelopment agencies as orderly as possible.

League' s Economic Development Task Force Holds Second Meeting; Makes Initial Recommendations

The League's economic development task force held its second meeting Wednesday, March 21 to review recommendations from a subcommittee of its members which met earlier in the month, and discuss priorities and possible actions. At its meeting, the task force also heard the perspectives of Assembly Member Atkins and Steve Shea, a consultant to Senate Pro Tem Darrell Steinberg's office, on possible next steps.

Assembly Member Atkins spoke about the importance of AB 1585 and the challenges the bill faces. AB 1585 includes an urgency clause requiring a two-thirds vote and will still ultimately need to be signed by Gov. Jerry Brown. Assembly Member Atkins stressed the importance of getting the bill chaptered before May when existing housing funds are scheduled to be reallocated.

Shea from Sen. Steinberg's office discussed some of the Senate Pro Tem's attempts to create new economic development tools and processes through two bills, SB 1156 (Steinberg) and SB 1151 (Steinberg).

SB 1156 would allow cities and counties formerly served by a redevelopment agency to create a Community Development and Housing Joint Powers Authority to develop sustainable economic development and affordable housing.

SB 1151 would require successor agencies to prepare a long range asset management plan that outlines a strategy for maximizing the long-term value of the real property and assets of the former redevelopment agency for ongoing economic development and housing functions. The bill would require the successor agency to submit the plan to the Department of Finance and the oversight board by Dec. 1 and would require the approval of the plan by the department and oversight board by Dec. 31.

At the conclusion of the meeting, the task force members made some initial recommendations that will be forwarded to League's Revenue and Taxation and Housing, Community and Economic Development Committees for their deliberation when they meet next week in Ontario. The task force will continue to research ideas and options and will meet again on Wednesday, May 16, in Sacramento.

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