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Hearing on AB 113, the Redevelopment Dissolution Bill, Canceled at Last Minute

July 16, 2015
Just as city officials gathered for a Monday morning briefing at the League’s office, they received information that the Senate Budget Committee canceled its planned 11 a.m. hearing on AB 113, the redevelopment dissolution bill sponsored by the Department of Finance (DOF) and opposed by many cities and the League for its harmful elements.
This development reflected obvious concern by legislators with issues raised by cities throughout California and the League.

The major concern for many cities with AB 113 is its effort to reverse court decisions and existing incentives offered to cities in AB 1484 of 2012 as encouragement to expeditiously resolve issues and obtain a DOF “finding of completion.” Now that many agencies have made the concessions necessary to obtain these findings, it is simply wrong to move the goalposts and change the rules.
The League’s opposition, which is detailed in a July 13 letter sent to all senators, focuses on three main issues:
  • Definition of loans;
  • Carve outs; and
  • Definition of interest rates.
Several city officials traveled to Sacramento to attend the hearing and testify, including representatives from the cities of Apple Valley, Dinuba, Folsom, Fresno, Glendale, Hercules, Oroville, San Dimas and Watsonville. Nearly 100 cities have sent in official opposition letters on various versions of the proposal.
Additional details on the League’s opposition are contained in a CA Cities Advocate article published on July 10.
Next Steps
Both houses of the Legislature will be on recess from July 17-Aug. 17. During this period, it is important that city officials continue to communicate with their legislators about AB 113’s harmful provisions. Although it is encouraging that the Senate Budget Committee decided to cancel Monday’s hearing, cities should remain engaged on this issue because it may re-emerge during the final weeks of the 2015 legislative session. Members of the Senate Budget Committee are listed on the committee website.
The Assembly Democrat Caucus also convened a small working group several weeks ago to examine the redevelopment proposal. Assembly Member Chris Holden (D-Pasadena) chairs this committee and is one of the members of the Assembly Budget Subcommittee #4 that raised issues on the proposal in June. With the Senate Budget Committee holding off its hearing on AB 113, it is hoped that Senators will also now have an opportunity to analyze all aspects of this proposal more broadly.
Cities that have previously sent their legislators a letter of opposition on the measure are advised to update the communication and submit again. Cities that have not yet opposed AB 113 are also encouraged to do so. The League requests that cities send their AB 113 opposition letters to the Senate Budget Committee as well as their legislators with a copy to the League.
The League has prepared a sample letter that city officials can use to oppose AB 113 that is available through the League’s website

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