HomeMy WebLinkAboutAB 1147 - Massage and AB 471 Infrastructure Financing Dists CITY OF PALM DESERT
OFFICE OF THE CITY MANAGER � 'J �
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STAFF REPORT
REQUEST: APPROVE THE PALM DESERT LEGISLATIVE REVIEW
COMMITTEE'S RECOMMENDATION TO PROVIDE A LETTER OF
SUPPORT FOR AB 1147 (GOMEZ) AND UPDATE ON STATUS OF AB
471 (ATKINS).
SUBMITTED BY: Stephen Y. Aryan, Risk Manager
DATE: February 27, 2014
CONTENTS: Bill Texts
Draft Support Letter
Recommendation
By Minute Motion, authorize the Mayor to send a letter of support for AB 1147 (Gomez) and
receive and file update on AB 471 (Atkins).
Committee Recommendation
On January 31, 2014, the Palm Desert Legislative Review Committee recommended that the
City Council approve support letters for AB 471 (Atkins) & AB 1147 (Gomez).
Backpround
The Palm Desert Legislative Review Committee recommended that the City send
correspondence indicating its support for the following proposed legislation:
AB 471 (Atkins):
Existing law authorizes the creation of infrastructure financing districts for the sole purpose of
financing public facilities, subject to adoption of a resolution by the legislative body and
affected taxing entities proposed to be subject to the division of taxes and voter approval
requirements. Existing law prohibits an infrastructure financing district from including any
portion of a redevelopment project area. This bill would delete that prohibition and would
authorize a district to finance a project or portion of a project that is located in, or overlaps
with, a redevelopment project area or former redevelopment project area.
AB 471 further requires that a successor agency must remit, to an entity that has assumed a
former RDA's housing duties, the amount of a housing entity administrative cost allowance
that is listed on the successor agency's Recognized Obligation Payment Schedule (ROPS).
From July 1, 2014 to July 1, 2018, the housing entity administrative cost allowance would be
1% (not less than $150,000 annually) of the property tax allocated to the Redevelopment
Obligation Retirement Fund each fiscal year. The successor agency would be required to
make the housing entity administrative cost allocations on January 2nd and July 1S� of each
year, as specified.
Staff Report: AB 471 (Atkins) & AB 1147 (Gomez)
February 27, 2014
Page 2 of 2
This bill also permits a successor agency to schedule ROPS payments beyond the existing
six-month ROPS cycle upon a showing that a lender requires cash on hand beyond the
ROPS cycle.
AB 471 (Atkins) was signed by the Governor and Chaptered by the Secretary of State on
February 18, 2014; therefore, a letter of support is no longer necessary.
AB 1147 (Gomez):
AB 1147 revises the qualifications for a certified massage practitioner (CMP) by requiring
applicants to pass a massage and bodywork competency examination. The examination
would meet generally recognized psychometric principles and standards and is approved by
the California Massage Therapy Council (CAMTC). Staff recommends the following
provisions be considered by the bill's author that strengthen local enforcement and regulation
of such establishments:
1. The ability to place moratoria on the number of establishments within the city;
2. The ability to use conditional use permits and permanent land use of the space
formerly occupied by a noncompliant/criminal business; and
3. Codify certificate holder rules in the Business and Profession Code as punitive
regulations that are misdemeanors or infractions, as appropriate, which are
enforceable by local law enforcement and may be filed in criminal court.
Fiscal Analvsis
There is no direct fiscal impact related to the City's support of these bills. As noted, the
proposed housing entity administrative cost under AB 471 is 1% of the Redevelopment
Obligation Retirement Fund allowance. This amount currently equates to $400,000 and is
evaluated every sixth months based on total outstanding debt.
Submitted By:
CITY COUNCILACTION
APPROVED_ ✓ D�+:N1F.D
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ABSTAIN: N o n r°. _.___.---
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JO M. Wohlmuth, City Manager Original on Fi1e with City C(cs�i<"s 1'tice ! '
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AB-471 Local government: redevelopment:successor agencies to redevelopment agencies. �zois-zoia�
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ENROLLED FEBRUARY 12, 2014
PASSED IN SENATE FEBRUARY 06,2014
', PASSED IN ASSEMBLY FEBRUARY 10,2014
AMENDED IN SENATE ]ANUARY 29,2014
AMENDED IN SENATE ]ANUARY 17,2014
AMENDED IN SENATE JANUARY 06,2014
' CAIIFORNIA LEGISLATURE—2013-2014 REGULAR SESSION
ASSEMBLY BILL No. 471
' Introduced by Assembly Members Atkins, Dickinson, Perea,and Ting
(Coauthors: Senators Mitcheii,Torres,and Wolk)
February 19, 2013
' An act to amend Section 53395.4 of the Government Code, and to amend Sections 34171, 34177,
34191.4, and 34191.5 of the Health and Safety Code, relating to local government, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 471,Atkins. Local government: redevelopment: successor agencies to redevelopment agencies.
(1} Existing law authorizes the creation of infrastructure financing districts, as defined, for the sole purpose of
financing public facilities, subject to adoption of a resolution by the legislative body and affected taxing entities
proposed to be subject to the division of taxes and voter approval requirements. Existing law prohibits an
infrastructure financing district from inciuding any portion of a redevelopment project area.
This bill would delete that prohibition and wouid authorize a district to finance a project or portion of a project
that is located in, or overlaps with, a redevelopment project area or former redevelopment project area, as
, specified.
(2) Existing law requires a successor agency to submit a Recognized Obligation Payment Schedule to the
Department of Finance, and requires the successor agency to make payments pursuant to that schedule.
This bill would authorize the successor agency to schedule Recognized Obiigation Payment Schedule payments
beyond the existing Recognized Obligation Payment Schedule cycle upon a showing that a lender requires cash
on hand beyond the Recognized Obligation Payment Schedule cycle, or when a payment is shown to be due
during the Recognized Obligation Payment Schedule period. The biil would authorize the successor agency to
utilize reasonable estimates and projections to support payment amounts where a payment is shown to be due
; during the Recognized Obligation Payment Schedule period but an invoice or other biiling document has not
been received, if the successor agency submits appropriate supporting documentation for the basis of the
estimate or projection to the department and the auditor-controller. The bill would provide that a Recognized
Obligation Payment Schedule may also inciude appropriation of moneys from bonds subject to passage during
the Recognized Obligation Payment Schedule cycle when an enforceabie obligation requires the agency to issue
the bonds and use the proceeds to pay for project expenditures.
(3) Existing law requires the county auditor-controller to determine the amount of property taxes that would
have been a�located to each redevelopment agency if it had not been dissolved and to deposit this amount in a
Redevelopment Property Tax Trust Fund in the county. Existing law requires the conducting of a due diligence
review to determine the unobligated balances availabie for transfer to affected taxing entities. Existing law
requires the county auditor-controller for each fiscal year to aliocate moneys in the Redevelopment Property
Tax Trust Fund for passthrou9h payment obligations, enforceable obligations of the dissolved redevelopment
agency, and administretive costs, as specified. Any remaining moneys in the Redevefopment Property Tax Trust
Fund are required to be distributed as local property tax revenues to local agencies and school entities, as
specified.
This bill would require that, under specified conditions, on July 1, 2014, and twice yearly thereafter until July 1,
2018, funds be allocated to cover the housing entity administrative cost allowance of a local housing authority
that has assumed the housing duties of the former redevelopment agency, as specified, before remaining
moneys are distributed to local agencies and school entities.The bill would define"housing entity administrative
cost allowance" for these purposes. This bilf woufd also exclude from the calculation of the amount distributed
to taxing entities during the 2012-13 base year the amounts distributed to taxing entities pursuant to the due
diligence review process. By imposing additional duties upon local public officials, the bitl would create a state-
mandated local program.
(4) Existing law requires a successor agency to prepare a long-range property management plan that addresses
the disposition and use of the real properties of a former redevelopment agency and requires a transfer of the
property to the city, county, or city and county if the pian directs the use or liquidation of the property for a
project identified in an approved redevelopment plan, as specified.
This bill woufd specify that the term "identified in an approved redevelopment plan" includes properties listed in
' a community plan or a 5-year implementation plan.
(5)The California Constitution requires the state to reimburse local agencies and school districts for certain
costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
, (6)This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3 Appropriation: no Fiscal Committee: yes �ocal Program: yes
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53395.4 of the Government Code is amended to read:
53395.4. (a) A district may finance only the facilities or services authorized in this chapter to the extent that the
facilities or services are in addition to those provided in the territory of the district before the district was
created. The additional facilities or services may not supplant facilities or services aiready available within that
territory when the district was created but may supplement those facilities and services as needed to serve new
developments.
(b) A district may include areas that are not contiguous.
(c) A district may finance a project or portion of a project that is located in, or overlaps with, a redevelopment
project area or former redevelopment project area. The successor agency to the former redevelopment agency
shail receive a finding of completion, as defined in Section 34179.7 of the Heaith and Safety Code, prior to the
district financing any project or portion of a project under this subdivision.
(d) Notwithstanding subdivision (c), any debt or obligation of a district shali be subordinate to an enforceable
obligation of a former redevelopment agency, as defined in Section 34171 of the Health and Safety Code. For
the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (b) of Section
53396 shall not include any taxes required to be deposited by the county auditor-controller into the
Redevelopment Property Tax Trust Fund crea#ed pursuant to subdivision (b) of Section 34170.5 of the Health
and Safety Code.
(e)The legislative body of the city or county forming the district may choose to dedicate any portion of its net
availabie revenue to the district through the financing plan described in Section 53395.14.
(f) For the purposes of this section, "net avaitable revenue" means periodic distributions to the city or county
from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and
Safety Code, that are available to the city or county after all preexisting legai commitments and statutory
' obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170} of
Division 24 of the Health and Safety Code. Net available revenue shall not include any funds deposited by the
county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the
Redeve�opment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any
moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community
college districts, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision
(a) of Section 34183 of the Health and Safety Code.
SEC.2. Section 34171 of the Health and Safety Code is amended to read:
34171.The foilowing terms shall have the following meanings:
(a)"Administrative budget" means the budget for administrative costs of the successor agencies as provided in
Section 34177.
(b)"Administrative cost altowance" means an amount that, subject to the approval of the oversight board, is
payable from property tax revenues of up to 5 percent of the property tax allocated to the successor agency on
the Recognized Obiigation Payment Schedule covering the period January 1, 2012, through June 30, 2012, and
up to 3 pertent of the property tax allocated to the Redevelopment Obligation Retirement Fund money that is
allocated to the successor agency for each fiscal year thereafter; provided, however, that the amount shall not
; be less than two hundred fifty thousand doliars ($250,000), unless the oversight board reduces this amount, for
any fiscal year or such lesser amount as agreed to by the successor agency. However, the allowance amount
shall exclude, and shaii not apply to, any administrative costs that can be paid from bond proceeds or from
sources other than property tax. Administrative cost allowances shall exclude any litigation expenses related to
assets or obligations, settlements and judgments, and the costs of maintaining assets prior to disposition.
Employee costs associated with work on specific project implementation activities, including, but not limited to,
construction inspection, project management, or actual construction, shall be considered project-specific costs
and shali not constitute administrative costs.
; (c)"Designated local authority"shall mean a public entity formed pursuant to subdivision (d) of Section 34173.
' (d) (1)"Enforceable obligation"means any of the following:
(A) Bonds, as defined by Section 33602 and bonds issued pursuant to Chapter 10.5 (commencing with Section
5850) of Division 6 of Title 1 of the Government Code, including the required debt service, reserve set-asides,
and any other payments required under the indenture or similar documents governing the issuance of the
outstanding bonds of the former redevelopment agency. A reserve may be held when required by the bond
indenture or when the next property tax allocation will be insufficient to pay all obligations due under the
provisions of the bond for the next payment due in the following haif of the calendar year.
(B) Loans of moneys borrowed by the redevelopment agency for a lawful purpose, to the extent they are legally
required to be repaid pursuant to a required repayment schedule or other mandatory loan terms.
(C) Payments required by the federal government, preexisting obligations to the state or obligations imposed by
state law, other than passthrough payments that are made by the county auditor-controiler pursuant to Section
34183, or legaily enforceable payments required in connection with the agencies'employees, inciuding, but not
limited to, pension payments, pension obligation debt service, unemployment payments, or other obligations
conferred through a col�ective bargaining agreement. Costs incurred to fulfill collective bargaining agreements
for layoffs or terminations of city employees who pertormed work direct�y on behalf of the former
redevelopment agency shall be considered enforceable obligations payable from property tax funds. The
obligations to employees specified in this subparagraph shall remain enforceable obligations payable from
property tax funds for any employee to whom those obligations apply if that employee is transferred to the
entity assuming the housing functions of the former redevelopment agency pursuant to Section 34176. The
successor agency or designated local authority shall enter into an agreement with the housing entity to
reimburse it for any costs of the employee obligations.
(D)Judgments or settlements entered by a competent court of law or binding arbitration decisions against the
former redevelopment agency, other than passthrough payments that are made by the county auditor-
controller pursuant to Section 34183. Along with the successor agency, the oversight board shall have the
authority and standi�g to appeal any judgment or to set aside any settlement or arbitration decision.
(E)Any legally binding and enforceab�e agreement or contract that is not otherwise void as violating the debt
limit or public policy. However, nothing in this act shall prohibit either the successor agency, with the approvai
or at the direction of the oversight board, or the oversight board itself from terminating any existing
agreements or contracts and providing any necessary and required compensation or remediation for such
termination. Titles of or headings used on or in a document shall not be relevant in determining the existence of
an enforceable obligation.
(F) Contracts or agreements necessary for the administration or operation of the successor agency, in
accordance with this part, inc�uding, but not limited to, agreements concerning litigation expenses related to
assets or obligations, settlements and judgments, and the costs of maintaining assets prior to disposition, and
agreements to purchase or rent office space, equipment and supplies, and pay-related expenses pursuant to
Section 33127 and for carrying insurance pursuant to Section 33134.
(G)Amounts borrowed from, or payments owing to, the Low and Moderate Income Housing Fund of a
redevelopment agency, which had been deferred as of the effective date of the act adding this part; provided,
however, that the repayment schedule is approved by the oversight board. Repayments shall be transferred to
the Low and Moderate Income Housing Asset Furid established pursuant to subdivision (d) of Section 34176 as
a housing asset and shall be used in a manner consistent with the affordable housing requirements of the
Community Redevelopment law (Part 1 (commencing with Section 33000)).
(2) For purposes of this part, "enforceable obiigation" does not include any agreements, contracts, or
arrangements between the city, county, or city and county that created the redevelopment agency and the
former redevelopment agency. However, written agreements entered into (A) at the time of issuance, but in no
' event later than December 31, 201D, of indebtedness obligations, and {B) solely for the purpose of securing or
repaying those indebtedness obligations may be deemed enforceable obiigations for purposes of this part.
Notwithstanding this paragraph, loan agreements entered into between the redevelopment a9ency and the city,
' county, or city and county that created it, within two years of the date of creation of the redevelopment agency,
may be deemed to be enforceable obligations.
' (3) Contracts or agreements between the former redevelopment agency and other public agencies, to perform
' services or provide funding for governmental or private services or capital projects outside of redevelopment
project areas that do not provide benefit to the redevelopment project and thus were not properly authorized
' under Part 1 (commencing with Section 33000) shall be deemed void on the effective date of this part;
provided, however, that such contracts or agreements for the provision of housing properly authorized under
Part i (commencing with Section 33000) shall not be deemed void.
(e)"Indebtedness obligations" means bonds, notes, certificates of participation, or other evidence of
indebtedness, issued or delivered by the redevelopment agency, or by a joint exercise of powers authority
created by the redevelopment agency, to third-party investors or bondholders to finance or refinance
redevelopment projects undertaken by the redevelopment agency in compliance with the Community
Redevelopment Law (Part 1 (commencing with Section 33000)).
(�"Oversight board"shall mean each entity established pursuant to Section 34179.
(g)"Recognized obtigation"means an obligation listed in the Recognized Obligation Payment Schedule.
(h)"Recognized Obligation Payment Schedule" means the document setting forth the minimum payment
amounts and due dates of payments required by enforceable obligations for each six-month fiscal period as
provided in subdivision (m)of Section 34177.
(i)"School entity" means any entity defined as such in subdivision (f) of Section 95 of the Revenue and
Taxation Code.
(j)"Successor agency"means the successor entity to the former redevelopment agency as described in Section
34173.
(k)"Taxing entities"means cities, counties, a city and county, special districts, and school entities, as defined in
subdivision (� of Section 95 of the Revenue and Taxation Code, that receive passthrough payments and
distributions of property taxes pursuant to the provisions of this part.
(I)"Property taxes" inciude all property tax revenues, including those from unitary and supplemental and roll
corrections applicab�e to tax increment.
(m)"DepartmenY'means the Department of Finance unless the context clearly refers to another state agency.
(n)'�Sponsoring entity" means the city, county, or city and county, or other entity that authorized the creation
of each redevelopment agency.
(o)"Final judicial determination" means a final judicial determination made by any state court that is not
appealed, or by a court of appellate jurisdiction that is not further appealed, in an action by any party.
(p) From 7uly 1, 2014, to ]uly 1, 2018, intlusive, "housing entity administrative cost allowance" means an
, amount of up to 1 percent of the property tax allocated to the Redevelopment Obligation Retirement Fund on
behalf of the successor agency for each applicable fiscal year, but not less than one hundred fifty thousand
dollars ($150,000) per fiscal year.
(1) If a local housing authority assumed the housing functions of the former redevelopment agency pursuant to
paragraph (2) or (3) of subdivision (b) of Section 34176, then the housing entity administrative cost allowance
shall be listed by the successor agency on the Recognized Obligation Payment Schedule. Upon approval of the
Recognized Obligation Payment Schedule by the oversight board and the department, the housing entity
administrative cost allowance shall be remitted by the successor agency on each January 2 and July 1 to the
local housing authority that assumed the housing functions of tne former redevelopment agency pursuant to
paragraph (2) or(3) of subdivision (b) of Section 34176.
(2) If there are insufficient moneys in the Redevelopment Obligations Retirement Fund in a given fiscal year to
make the payment authorized by this subdivision, the unfunded amount may be listed on each subsequent
Recognized Obiigation Payment Schedule until it has been paid in fuli. In these cases the five-year time limit on
the payments shali not apply.
' SEC.3. Section 34177 of the Health and Safety Code is amended to read:
34177. Successor agencies are required to do all of the folfowing:
(a)Continue to make payments due for enforceable obligations.
(1) On and after February 1, 2012, and until a Recognized Obligation Payment Schedule becomes operative,
only payments required pursuant to an enforceable obligations payment schedule shall be made. The initial
enforceable obligation payment schedule shall be the Iast schedule adopted by the redevelopment agency under
Section 34169. However, payments associated with obligations excluded from the definition of enforceable
obligations by paragraph (2) of subdivision (d) of Section 34171 shail be excluded from the enforceable
obligations payment schedule and be removed from the last schedule adopted by the redevelopment agency
under Section 34169 prior to the successor agency adopting it as its enforceable obligations payment schedule
pursuant to this subdivision. The enforceable obligation payment schedule may be amended by the successor
agency at any public meeting and shall be subject to the approval of the oversight board as soon as the board
has sufficient members to form a quorum. In recognition of the fact that the timing of the California Supreme
, Court's ruling in the case California Redevelopment Association v. Matosantos (2011) 53 Cal.4th 231 delayed
the preparation by successor agencies and the approval by oversight boards of the )anuary 1, 2012, through
]une 30, 2012, Recognized Obligation Payment Schedule, a successor agency may amend the Enforceable
, Obligation Payment Schedule to authorize the continued payment of enforceable obligations until the time that
the January 1, 2012, through June 30, 2012, Recognized Obligation Payment Schedule has been approved by
the oversight board and by the Department of Finance. The successor agency may utilize reasonable estimates
and projections Yo support payment amounts for enforceable obligations if the successor agency submits
appropriate supporting documentation of the basis for the estimate or projection to the Department of Finance
' and the auditor-controller.
(2)The Oepartment of Finance and the Controller shall each have the authority to require any documents
associated with the enforceable obligations to be provided to them in a manner of their choosing. Any taxing
entity, the department, and the Controller shali each have standing to file a judicial action to prevent a violation
under this part and to obtain injunctive or other appropriate relief.
(3) Commencing on the date the Recognized Obligation Payment Schedule is valid pursuant to subdivision (I),
only those payments iisted in the Recognized Obligation Payment Schedule may be made by the successor
agency from the funds specified in the Recognized Obligation Payment Schedule. In addition, after it becomes
valid, the Recognized Obligation Payment Schedule shall supersede the Statement of Indebtedness, which shall
no�onger be prepared nor have any effect under the Community Redevelopment�aw (Part 1 (commencing with
Section 33000)).
(4) Nothing in the act adding this part is to be construed as preventing a successor agency, with the prior
approval of the oversight board, as described in Section 34179, from making payments for enforceable
obligations from sources other than those listed in the Recognized Obligation Payment Schedule.
(5) From February 1, 2012, to July 1, 2012, a successor agency shall have no authority and is hereby prohibited
from accelerating payment or making any lump-sum payments that are intended to prepay loans unless such
accelerated repayments were required prior to the effective date of this part.
(b) Maintain reserves in the amount required by indentures, trust indentures, or similar documents governing
, the issuance of outstanding redevelopment agency bonds.
(c) Perform obligations required pursuant to any enforceable obiigation.
(d) Remit unencumbered balances of redevelopment agency funds to the county auditor-controller for
distribution to the taxing entities, including, but not limited to, the unencumbered balance of the Low and
Moderate Income Housing Fund of a former redevelopment agency. In making the distribution, the county
auditor-controller shall utilize the same methodology for allocation and distribution of property tax revenues
provided in Section 34188.
(e) Dispose of assets and properties of the former redevelopment agency as directed by the oversight board;
provided, however, that the oversight board may instead direct the successor agency to transfer ownership of
certain assets pursuant to subdivision (a) of Section 34181. The disposal is to be done expeditiously and in a
manner aimed at maximizing value. Proceeds from asset sales and related funds that are no longer needed for
' approved development projects or to otherwise wind down the affairs of the agency, each as determined by the
oversight board, shall be transferred to the county auditor-controiler for distribution as property tax proceeds
under Section 34188. The requirements of this subdivision shalf not apply to a successor agency that has been
issued a finding of completion by the Department of Finance pursuant to Section 34179.7.
(f) Enforce all former redevelopment agency rights for the benefit of the taxing entities, including, but not
limited to,continuing to coilect loans, rents,and other revenues that were due to the redevetopment agency.
: (g) Effectuate transfer of housing functions and assets to the appropriate entity designated pursuant to Section
34176.
(h) Expeditiously wind down the affairs of the redevelopment agency pursuant to the provisions of this part and
in accordance with the direction of the oversight board.
, (i)Continue to oversee development of properties until the contracted work has been compieted or the
contractual obligations of the former redevelopment agency can be transferred to other parties. Bond proceeds
shall be used for the purposes for which bonds were sold unless the purposes can no longer be achieved, in
which case, the proceeds may be used to defease the bonds.
(j) Prepare a proposed administrative budget and submit it to the oversight board for its approvaL The
proposed administretive budget shall include all of the following:
(1) Estimated amounts for successor agency administrative costs for the upcoming six-month fiscal period.
(2) Proposed sources of payment for the costs identified in paragraph (1).
(3) Proposals for arrangements for administrative and operations services provided by a city, county, city and
county, or other entity.
(k) Provide administrative cost estimates, from its approved administrative budget that are to be paid from
property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county auditor-
controller for each six-month fiscal period.
(I) (1) Before each six-month fiscal period, prepare a Recognized Obiigation Payment Schedule in accordance
with the requirements of this paragraph. For each recognized obligation, the Recognized Obligation Payment
Schedule shall identify one or more of the following sources of payment:
(A) Low and Moderate Income Housing Fund.
(B) Bond proceeds.
(C) Reserve balances.
(D) Administretive cost aliowance.
(E)The Redevelopment Property Tax Trust Fund, but only to the extent no other funding source is available or
when payment from property tax revenues is required by an enforceabie obligation or by the provisions of this
pa rt.
(F) Other revenue sources, including rents, concessions, asset sale proceeds, interest earnings, and any other
revenues derived from the former redeve�opment agency, as approved by the oversight board in accordance
with this part.
, (2)A Recognized Obligation Payment Schedule shall not be deemed valid unless alt of the following conditions
have been met:
' (A)A Recognized Obligation Payment Schedule is prepared by the successor agency for the enforceable
obligations of the former redevelopment agency. The initial schedule shall project the dates and amounts of
scheduled payments for each enforceabie obligation for the remainder of the time period during which the
redevelopment agency would have been authorized to obligate property tax increment had the a redevelopment
agency not been dissolved.
(B)The Recognized Obligation Payment Schedule is submitted to and duly approved by the oversight board.
The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the county
administrative officer, the county auditor-controller, and the Department of Finance at the same time that the
successor agency submits the Recognized Obtigation Payment Schedule to the oversight board for approvaL
(C) A copy of the approved Recognized Obligation Payment Schedule is submitted to the county auditor-
controller, the Controller's office, and the Department of Finance, and is posted on the successor agency's
Internet Web site.
(3)The Recognized Obligation Payment Schedule shall be forward looking to the next six months. The first
Recognized Obligation Payment Schedule shall be submitted to the Controller's office and the Department of '
Finance by April 15, 2012, for the period of January 1, 2012, to June 30, 2012, inclusive. This Recognized
Obligation Payment Schedule shall inciude all payments made by the former redevelopment agency between
)anuary 1, 2012, through January 31, 2012, and shali include ail payments proposed to be made by the
successor agency from February 1, 2012, through June 30, 2012. Former redevelopment agency enforceable
obligation payments due, and reasonable or necessary administrative costs due or incurred, prior to January 1,
2012, sha�l be made from property tax revenues received in the spring of 2011 property tax distribution, and
from other revenues and balances transferred to the successor agency.
(m)The Recognized Obligation Payment Schedule for the period of]anuary 1, 2013, to June 30, 2013, shali be
submitted by the successor agency, after approval by the oversight board, no later than September 1, 2012
Commencing with the Recognized Obligation Payment Schedule covering the period July 1, 2013, through
December 31, 2013, successor agencies shall submit an oversight board-approved Recognized Obligation
Payment Schedule to the Department of Finance and to the county auditor-controiler no fewer than 90 days
before the date of property tax distribution. The Department of Finance shall make its determination of the
enforceable obligations and the amounts and funding sources of the enforceable obligations no later than 45
days after the Recognized Obligation Payment Schedule is submitted. Within five business days of the
departmenYs determination, a successor agency may request additional review by the department and an
opportunity to meet and confer on disputed items.The meet and confer period may vary; an untimely submittal
of a Recognized Obiigation Payment Schedule may result in a meet and confer period of�ess than 30 days. The
department shall notify the successor agency and the county auditor-controllers as to the outcome of its review
at least 15 days before the date of property tax distribution.
(1)The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the
Department of Finance electronically, and the successor agency shall complete the Recognized Obligation
Payment Schedule in the manner provided for by the department. A successor agency shall be in
noncompliance with tnis paragraph if it only submits to the department an electronic message or a letter stating
that the oversight board has approved a Recognized Obligation Payment Schedule.
' (2) If a successor agency does not submit a Recognized Obligation Payment Schedule by the deadlines provided
in this subdivision, the city, county, or city and county that created the redevelopment agency shali be subject
to a civil penalty equai to ten thousand dollars ($10,000) per day for every day the schedule is not submitted to
the department. The civil penalty sha�l be paid to the county auditor-controller for allocation to the taxing
entities under Section 34183. If a successor agency fails to submit a Recognized Obligation Payment Schedule
by the deadiine, any creditor of the successor agency or the Department of Finance or any affected taxing
entity shali have standing to and may request a writ of mandate to require the successor agency to immediately
perform this duty. Those actions may be filed only in the County of Sacramento and shail have priority over
other civil matters. Additionally, if an agency does not submit a Recognized Obiigation Payment Schedule within
10 days of the deadiine, the maximum administrative cost aliowance for that period shall be reduced by 25
percent.
(3) If a successor agency fails to submit to the department an oversight board-approved Recognized Obligation
Payment Schedule that complies with all requirements of this subdivision within five business days of the date
upon which the Recognized Obiigation Payment Schedule is to be used to determine the amount of property tax
allocations, the department may determine if any amount shouid be withheld by the county auditor-controller
for payments for enforceable obligations from distribution to taxing entities, pending approval of a Recognized
Obligation Payment Schedule. The county auditor-controlier shall distribute the portion of any of the sums
' withheld pursuant to this paragraph to the affected taxing entities in accordance with paragraph (4) of '
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subdivision (a) of Section 34183 upon notice by the department that a portion of the withheld balances are in
excess of the amount of enforceable obligations. The county auditor-controller shall distribute withheld funds to
the successor agency only in accordance with a Recogni2ed Obiigation Payment Schedule approved by the '
department. County auditor-controilers shail lack the authority to withhold any other amounts from the
allocations provided for under Section 34183 or 34188 unless required by a court order.
(4) (A)The Recognized Obligation Payment Schedule payments required pursuant to this subdivision may be
scheduled beyond the existing Recognized Obiigation Payment Schedule cycle upon a showing that a lender
requires cash on hand beyond the Recognized Obligation Payment Schedule cycle.
(B) When a payment is shown to be due during the Recognized Obligation Payment Schedule period, but an
invoice or other billing document has not yet been received, the successor agency may utilize reasonabfe
estimates and projections to support payment amounts for enforceable obligations if the successor agency
submits appropriate supporting documentation of the basis for the estimate or projection to the department and
the auditor-controller.
(C) A Recognized Obligation Payment Schedule may also include appropriation of moneys from bonds subject to
passage during the Recognized Obligation Payment Schedule cycle when an enforceable obligation requires the
agency to issue the bonds and use the proceeds to pay for project expenditures.
(n)Cause a postaudit of the financiai transactions and records of the successor agency to be made at least
annualfy by a certified public accountant.
SEC.4. Section 34191.4 of the Health and Safety Code is amended to read:
34191.4.The following provisions shall apply to any successor agency that has been issued a finding of
completion by the Department of Finance:
(a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision
(c) of Section 34179.5 shall be trensferred to the Community Redevelopment Property Trust Fund of the
successor agency upon approval by the Department of Finance of the long-range property management plan
submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is
subject to the requirements of any existing enforceable obligation.
(b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and
approval by the oversight board, loan agreements entered into between the redeve�opment agency and the
city, county, or city and co�nty that created the redevelopment agency shall be deemed to be enforceable
I obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment
purposes.
, (2) If the oversight board finds that the Ioan is an enforceable obiigation, the accumulated interest on the
' remaining principal amount of the �oan shail be recaiculated from origination at the interest rate earned by
funds deposited into the Local Agency Investment Fund.The Ioan shall be repaid to the city, county, or city and
county in accordance with a defined schedule over a reasonable term of years at an interest rate not to exceed
the interest rate earned by funds deposited into the Local Agency Investment Fund. The annual loan
repayments provided for in the recognized obiigation payment schedules shall be subject to all of the following
limitations:
{A) Loan repayments shall not be made prior to the 2013-14 fiscal year. Beginning in the 2013-14 fiscal year,
the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision
and paragraph (7) of subdivision (e) of Section 34176 combined shall be equai to one-half of the increase
between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section
34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 2012
-13 base year, provided, however, that calculation of the amount distributed to taxing entities during the 2012
-13 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review
process established in Sections 34179.5 to 34179.8, inciusive. Loan or deferral repayments made pursuant to
this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e)
of Section 34176.
(B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall
first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing
Fund of the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation
Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision
(d)of Section 34176. '
(C)Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be
transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding toans from the Low and
Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund
' have been paid.
(c) (1) Bond proceeds derived from bonds issued on or before December 31, 2010, shall be used for the
purposes for which the bonds were soid.
, {2) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds in excess of
' the amounts needed to satisfy approved enforceabie obligations shall thereafter be expended in a manner
consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves
for projects that are the subject of tne enforceable obligation and that are consistent with the contractual
, obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant
to this paragraph shall constitute the creation of excess bond proceeds obligations to be paid from the excess
proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment
Schedule submitted by the successor agency.
(B) If remaining bond proceeds cannot be spent in a manner consistent with the bond covenants pursuant to
subparagraph (A), the proceeds shail be used to defease the bonds or to purchase those same outstanding
bonds on the open market for cancellation.
SEC.5.Section 34191.5 of the Health and Safety Code is amended to read:
34191.5. (a)There is hereby established a Community Redevelopment Property Trust Fund, administered by the
successor agency, to serve as the repository of the former redevelopment agency's real properties identified in
subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5.
(b)The successor agency shall prepare a long-range property management plan that addresses the disposition
and use of the real properties of the former redevelopment agency. The report shall be submitted to the
oversight board and the Department of Finance for approval no later than six months following the issuance to
the successor agency of the finding of compleYion.
; (c)The long-range property management plan shall do all of the following:
(1) Include an inventory of all properties in the trust. The inventory shall consist of all of the following
information:
(A)The date of the acquisition of the property and the value of the property at that time, and an estimate of
the current value of the property.
(B)The purpose for which the property was acquired.
(C) Parcel data, including address, fot size, and current zoning in the former agency redevelopment plan or
� specific, community, or general plan.
', (D) An estimate of the current value of the parcel inctuding, if available, any appreisal information.
(E)An estimate of any lease, rental, or any other revenues generated by the property, and a description of the
contractual requirements for the disposition of those funds.
(F)The history of environmental contamination, induding designation as a brownfietd site, any related
environmental studies, and history of any remediation efforts.
(G)A description of the property's potentiai for transit-oriented development and the advancement of the
planning objectives of the successor agency.
(H) A brief history of previous development proposals and activity, including the rental or lease of property.
(2)Address the use or disposition of all of the properties in the trust. Permissible uses include the retention of
the property for governmental use pursuant to subdivision (a) of Section 34181, the retention of the property
for future development, the sale of the property, or the use of the property to fulfill an enforceable obligation.
The plan shall separately identify and list properties in the trust dedicated to governmental use purposes and
properties retained for purposes of fulfil�ing an enforceable obligation. With respect to the use or disposition of
all other properties, all of the following shall appty:
(A) (i) If the plan directs the use or liquidation of the property for a project identified in an approved
redevelopment plan, the property shall transfer to the city, county,or city and county.
i
(ii) For purposes of this subparagraph, the term "identified in an approved redevelopment plan" includes
properties listed in a community pian or a five-year implementation plan. I
(B) If the plan directs the liquidation of the property or the use of revenues generated from the property, such
as lease or parking revenues, for any purpose other than to fulfill an enforceable obligation or other than that
' specified in subparagraph (A), the proceeds from the sale shall be distributed as property tax to the taxing '
entities. '
(C) Property shall not be transferred to a successor agency, city, county, or city and county, unless the long-
range property management plan has been approved by the oversight board and the Department of Finance. '
SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California
Constitution because this act provides for offsetting savings to local agencies or school districts that result in no ,
net costs to the local agencies or school districts, within the meaning of Section 17556 of the Government
Code.
SEC. 7.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 facilitate the smooth and effective impiementation and completion of the dissolution of
redevelopment agencies, it is necessary that this act 90 into immediate effect.
_ _ _ _ . _ _ _ _ _ _ __ _
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AB-1147 Massage therapy. �zoi3-2oia�
_ _ _ __ _. __ __ _. _. __ _ _
AMENDED IN ASSEMBLY JANUARY14,2014
AMENDED IN ASSEMBLY JANUARY 06,2014
AMENDED IN ASSEMBLY MAY 31, 2013
AMENDED IN ASSEMBLY MAY 13, 2013
AMENDED IN ASSEMB�Y MAY O1, 2013
AMENDED IN ASSEMBLY APRIL 15, 2013
CALIFOf�NiA LEGISLATURE—2013-2014 REGULAR SESSION
ASSEMBLY BILL No. 1147
Introduced by Assembly Member Gomez
(Coauthor: Assembly Member Muratsuchi)
February 22, 2013
An act to ��'�' ���*;�~ ^�„ � ~� amend Section 4601 ofthe Business and Professions Code, relating to
healing arts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1147, as amended, Gomez. Massage therapy.
Existing law, until January 1, 2015, provides for the voluntary certification of massage practitioners and
massage therapists by the Ca�ifornia Massage Therapy Council. Existing law specifies the requirements fo�the
council to issue to an applicant a certificate as a massage practitioner, including, but not limited to, successfully
completing curricula in massage and related subjects totaiing a minimum of 250 hours or the credit unit
equivalent, as specified.
, �
This bill wou/d additionally require an applicant for a certiFcate as a massage practitioner to pass a massage
and bodywork competency assessment examination that meets generaily recognized psychometric principles
and standards, and that is approved by the council.
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1.Section 4601 of the Business and Professions Code is amended to read:
4601. (a)The council shall issue a certificate under this chapter to an applicant who satisfies the requirements of
this chapter.
(b) (1) In order to obtain certification as a massage practitioner, an applicant sha�l submit a written application
and provide the council with satisfactory evidence that he or she meets all of the following requirements:
(A) The applicant is 18 years of age or older.
(B)The applicant has sutcessfully completed, at an approved school, curricula in massage and related subjects,
totaling a minimum of 250 hours or the credit unit equivalent, that incorporates appropriate school assessment
' of student knowledge and skills. Included in the hours shall be instruction addressing anatomy and physiology,
contraindications, health and hygiene, and business and ethics, with at least 100 hours of the required
minimum 250 hours devoted to these curriculum areas.
(C) The applicant has passed a massage and bodywork competency assessment examinafion that meets
generally recognized psychometric principles and standards, and that rs approved by the counciL The successful
completion of this examination may have been accomplished before the date the council is authorized by this
chapter to begin issuing certificates.
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(D)All fees required by the council have been paid.
(2) New certificates shall not be issued pursuant to this subdivision after December 31, 2015. Certificates
issued pursuant to this section or subdivision (a) or(c) of Section 4604 on or before December 31, 2015, shall,
, after Decembe� 31, 2015, be renewed without any additional educational requirements, provided that the
certificate holder continues to be qualified pursuant to this chapter.
(c} In order to obtain certification as a massage therapist, an appiicant shail submit a written application and
provide the council with satisfactory evidence that he or she meets all of the foliowing requirements:
(1)The applicant is 18 years of age or o�der.
(2)The applicant satisfies at least one of the foilowing requirements:
(A) He or she has successfully completed the curricula in massage and related subjects totaling a minimum of
500 hours or the credit unit equivalent. Of this 500 hours, a minimum of 250 hours shall be from approved
schools. The remaining 250 hours required may be secured either from approved or registered schools, or from
, continuing education providers approved by, or registered with, the council or the Department of Consumer
Affairs. After December 31, 2015, applicants may only satisfy the curricula in massage and related subjects
from approved schools.
(8)The applicant has done both of the following:
(i) Successfully completed, at an approved schooi, curricula in massage and related subjects totaling a
minimum of 250 hours that incorporates appropriate school assessment of student knowledge and skills.
Included in the hours shall be instruction addressing anatomy and physiology, contraindications, health and
hygiene, and business and ethics, with at least 100 hours of the required minimum 250 hours devoted to these '
curriculum areas.
(ii) Passed a massage and bodywork competency assessment examination that meets generally recognized
psychometric principles and standards, and that is approved by the board. The successfui completion of this
examination may have been accompiished before the date the council is authorized by this chapter to begin
issuing certificates.
I (3) All fees required by the council have been paid.
(d)The councii shali issue a certificate to an applicant who meets the other qualifications of this chapter and
holds a current and valid registration, certification, or license from any other state whose iicensure
requirements meet or exceed those defined within this chapter. The council shali have discretion to give credit
for compareble academic work completed by an applicant in a program outside of California.
(e) An applicant applying for a massage therapist certificate shali file with the council a written application
provided by the council, showing to the satisfaction of the council that he or she meets ail of the requirements
of this chapter.
(f)Any certification issued under this chapter shall be subject to renewal every two years in a manner
prescribed by the council, and shall expire unless renewed in that manner. The counci� may provide for the late
renewal of a license.
(g) (1)The council shall have the responsibility to determine that the school or schools from which an applicant ,
has obtained the education required by this chapter meet the requirements of this chapter. If the council has
any reason to question whether or not the applicant received the education that is required by this chapter from
the school or schoois that the applicant is ctaiming, the council shall investigate the facts to determine that the
; appiicant received the required education prior to issuing a certificate.
(2) For purposes of paragraph (1) and any other provision of this chapter for which the council is authorized to
receive factual information as a condition of taking any action, the council shall have the authority to conduct
oral interviews of the applicant and others or to make any investigation deemed necessary to establish that the
information received is accurate and satisfies any criteria estab�ished by this chapter.
(h)The certificate issued pursuant to this chapter, as well as any identification card issued by the council, shall
, be surrendered to the council by any certificate hoider whose certificate has been suspended or revoked.
• . , .
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February 28, 2014
The Honorable AI Muratsuchi
State Capitol
PO Box 942849
Sacramento, CA 94249-0066
Dear Assemblymember Muratsuchi:
On behalf of my city council colleagues, I wish to express the City of Palm Desert's
support of AB 1147.
This bill revises the qualifications for a certified massage practitioner(CMP) by requiring
applicants pass a massage and bodywork competency examination. The examination
would meet generally recognized psychometric principles and standards and is
approved by the California Massage Therapy Council (CAMTC).
While we support the intent of AB 1147, we respectfully request you consider including
the following measures that would strengthen local enforcement and regulation of such
establishments:
1. The ability to place moratoria on the number of establishments within
municipalities;
2. The ability to use conditional use permits and permanent land use of the space
formerly occupied by a noncompliant/criminal business; and
3. Codify certificate holder rules in the Business and Profession Code as punitive
regulations that are misdemeanors or infractions, as appropriate, which are
enforceable by local law enforcement and may be filed in criminal court.
As this bill ensures a greater degree of accountability by requiring applicants pass a
competency examination, the City of Palm Desert endorses AB 1147. Thank you for
consideration of our proposed amendments. Please let us know if you have any
questions or need any additional information by contacting Stephen Y. Aryan, Risk
Manager, at (760) 776-6326.
Sincerely,
VAN G. TANNER
MAYOR
cc: City Council
The Honorable Brian Nestande, California State Assembly
Erin Sasse, League of California Cities, esasse �cacities.org
Anthony Gonsalves, Gonsalves and Sons, aonsalvesCa�gonsalvi.com
John M. Wohlmuth, City Manager
Stephen Y. Aryan, Risk Manager
Paul S. Gibson, Director of Finance
Lauri Aylaian, Director of Community Development