2010 California Code
Health and Safety Code
Article 7. School Finance

33680.  (a) The Legislature finds and declares that the effectuation
of the primary purposes of the Community Redevelopment Law,
including job creation, attracting new private commercial
investments, the physical and social improvement of residential
neighborhoods, and the provision and maintenance of low- and
moderate-income housing, is dependent upon the existence of an
adequate and financially solvent school system which is capable of
providing for the safety and education of students who live within
both redevelopment project areas and housing assisted by
redevelopment agencies. The attraction of new businesses to
redevelopment project areas depends upon the existence of an
adequately trained work force, which can only be accomplished if
education at the primary and secondary schools is adequate and
general education and job training at community colleges is
available. The ability of communities to build residential
development and attract residents in redevelopment project areas
depends upon the existence of adequately maintained and operating
schools serving the redevelopment project area. The development and
maintenance of low- and moderate-income housing both within
redevelopment project areas and throughout the community can only be
successful if adequate schools exist to serve the residents of this
housing.
   (b) Redevelopment agencies have financially assisted schools which
benefit and serve the project area by paying part or all of land and
the construction of school facilities and other improvements
pursuant to the authority in Section 33445. Redevelopment agencies
have financially assisted schools to alleviate the financial burden
or detriment caused by the establishment of redevelopment project
areas pursuant to the authority in Sections 33401 and 33445.5. Funds
also have been allocated to schools and community colleges pursuant
to the authority in Section 33676.
   (c) The Legislature further finds and declares that, because of
the reduced funds available to the state to assist schools and
community colleges which benefit and serve redevelopment project
areas during the 1992-93, 1993-94, and 1994-95 fiscal years, it is
necessary for redevelopment agencies to make additional payments to
assist the programs and operations of these schools and colleges in
order to ensure that the objectives stated in this section can be
met. The Legislature further finds and declares that the payments to
schools and community college districts pursuant to Section 33681 are
of benefit to redevelopment project areas.
   (d) The Legislature further finds and declares all of the
following:
   (1) Because of the reduced funds available to the state to assist
schools that benefit and serve redevelopment project areas during the
2008-09 fiscal year, it is necessary for redevelopment agencies to
make additional payments to assist the programs and operations of
these schools to ensure that the objectives stated in this section
can be met.
   (2) The payments to schools pursuant to Section 33685 are of
benefit to redevelopment project areas.



33681.6.  Notwithstanding any other provision of this article to the
contrary, the amount determined pursuant to subparagraphs (A) and
(B) of paragraph (2) of subdivision (a) of Section 33681.5 shall not
include any tax increment apportioned to the downtown project area of
a charter city meeting all of the criteria specified in Section
33608.



33681.7.  (a) (1) During the 2002-03 fiscal year, a redevelopment
agency shall, prior to May 10, remit an amount equal to the amount
determined for that agency pursuant to subparagraph (I) of paragraph
(2) to the county auditor for deposit in the county's Educational
Revenue Augmentation Fund created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code.
   (2) For the 2002-03 fiscal year, on or before October 1, the
Director of Finance shall do all of the following:
   (A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401 or 33676, in the
2000-01 fiscal year.
   (B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401 or 33676, in the
2000-01 fiscal year.
   (C) Determine a percentage factor by dividing thirty-seven million
five hundred thousand dollars ($37,500,000) by the amount determined
pursuant to subparagraph (B).
   (D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401 or
33676, in the 2000-01 fiscal year.
   (F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401 or
33676, in the 2000-01 fiscal year.
   (G) Determine a percentage factor by dividing thirty-seven million
five hundred thousand dollars ($37,500,000) by the amount determined
pursuant to subparagraph (F).
   (H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
   (I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
   (J) Notify each agency and each legislative body of the amount
determined pursuant to subparagraph (I).
   (K) Notify each county auditor of the amounts determined pursuant
to subparagraph (I) for each agency in his or her county.
   (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6,
and any other provision of law, in order to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6
during the 2002-03 fiscal year, unless executed contracts exist that
would be impaired if the agency reduced the amount allocated to the
Low and Moderate Income Housing Fund pursuant to the authority of
this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys were borrowed.
   (c) In order to make the allocation required by this section, an
agency may use any funds that are legally available and not legally
obligated for other uses, including, but not limited to, reserve
funds, proceeds of land sales, proceeds of bonds or other
indebtedness, lease revenues, interest, and other earned income. No
moneys held in a low- and moderate-income fund as of July 1 of that
fiscal year may be used for this purpose.
   (d) The legislative body shall by March 1 report to the county
auditor as to how the agency intends to fund the allocation required
by this section.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment projects pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the determinations required by subdivision (a), the
Director of Finance shall use those amounts reported as the "Tax
Increment Retained by Agency" for all agencies and for each agency in
Table 7 of the 2000-01 fiscal year Controller's State of California
Community Redevelopment Agencies Annual Report.
   (h) If revised reports have been accepted by the Controller on or
before January 1, 2003, the Director of Finance shall use appropriate
data that has been certified by the Controller for the purpose of
making the determinations required by subdivision (a).



33681.8.  (a) (1) For the purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of this
section, the payment of which is to be made in whole or in part,
directly or indirectly, out of taxes allocated to the agency pursuant
to Section 33670, and that is required by law or provision of the
existing indebtedness to be made during the fiscal year of the
relevant allocation required by Section 33681.7:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency, whether funded, refunded, assumed,
or otherwise, pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2000-01 fiscal year.
   (G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
   (2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section, if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33681.7.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this section if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) During the 2002-03 fiscal year, an agency that has adopted a
resolution pursuant to subdivision (c) may, pursuant to subdivision
(a) of Section 33681.7, allocate to the auditor less than the amount
required by subdivision (a) of Section 33681.7, if the agency finds
that either of the following has occurred:
   (1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33681.7 is
necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the agency during
the applicable fiscal year and that are used by the agency for that
purpose, and the agency has no other funds that can be used to pay
this existing indebtedness, and no other feasible method to reduce or
avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.7.
   (c) (1) Any agency that, pursuant to subdivision (b), allocates to
the auditor less than the amount required by subdivision (a) of
Section 33681.7 shall adopt, prior to December 31, 2002, after a
noticed public hearing, a resolution that lists all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the 2002-03 fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
2002-03 fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that, pursuant to subdivision (b), determines
that it will be unable in the 2002-03 fiscal year, to allocate the
full amount required by subdivision (a) of Section 33681.7 shall,
subject to paragraph (3), enter into an agreement with the
legislative body by February 15, 2003, to fund the payment of the
difference between the full amount required to be paid pursuant to
subdivision (a) of Section 33681.7 and the amount available for
allocation by the agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the redevelopment agency to finance a
portion of a redevelopment project within the meaning of Section 16
of Article XVI of the California Constitution. This indebtedness
shall be payable from tax revenues allocated to the agency pursuant
to Section 33670, and any other funds received by the agency. The
obligations imposed by paragraph (1) shall remain an indebtedness of
the agency to the legislative body until paid in full, or until the
agency and the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
these terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails, under either Section 33681.7 or
subdivision (d), to transmit the full amount of funds required by
Section 33681.7, is precluded by court order from transmitting that
amount, or is otherwise unable to meet its full obligation pursuant
to Section 33681.7, the county auditor, by no later than May 15,
2003, shall transfer any amount necessary to meet the obligation
determined for that agency in subparagraph (D) of paragraph (2) of
subdivision (a) of Section 33681.7 from the legislative body's
property tax allocation pursuant to Chapter 6 (commencing with
Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation
Code.


33681.9.  (a) (1) During the 2003-04 fiscal year, a redevelopment
agency shall, prior to May 10, remit an amount equal to the amount
determined for that agency pursuant to subparagraph (I) of paragraph
(2) to the county auditor for deposit in the county's Educational
Revenue Augmentation Fund created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code.
   (2) For the 2003-04 fiscal year, on or before October 1, the
Director of Finance shall do all of the following:
   (A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401, 33607.5, or
33676, in the 2001-02 fiscal year.
   (B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401, 33607.5, or
33676, in the 2001-02 fiscal year.
   (C) Determine a percentage factor by dividing sixty-seven million
five hundred thousand dollars ($67,500,000) by the amount determined
pursuant to subparagraph (B).
   (D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33607.5, or 33676, in the 2001-02 fiscal year.
   (F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33607.5, or 33676, in the 2001-02 fiscal year.
   (G) Determine a percentage factor by dividing sixty-seven million
five hundred thousand dollars ($67,500,000) by the amount determined
pursuant to subparagraph (F).
   (H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
   (I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
   (J) Notify each agency and each legislative body of the amount
determined pursuant to subparagraph (I).
   (K) Notify each county auditor of the amounts determined pursuant
to subparagraph (I) for each agency in his or her county.
   (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6,
and any other provision of law, in order to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6
during the 2003-04 fiscal year, unless executed contracts exist that
would be impaired if the agency reduced the amount allocated to the
Low and Moderate Income Housing Fund pursuant to the authority of
this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys were borrowed.
   (c) In order to make the allocation required by this section, an
agency may use any funds that are legally available and not legally
obligated for other uses, including, but not limited to, reserve
funds, proceeds of land sales, proceeds of bonds or other
indebtedness, lease revenues, interest, and other earned income. No
moneys held in a low- and moderate-income fund as of July 1 of that
fiscal year may be used for this purpose.
   (d) The legislative body shall by March 1 report to the county
auditor as to how the agency intends to fund the allocation required
by this section, or that the legislative body intends to remit the
amount in lieu of the agency pursuant to Section 33681.11.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment projects pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the determinations required by subdivision (a), the
Director of Finance shall use those amounts reported as the "Tax
Increment Retained by Agency" for all agencies and for each agency in
Table 7 of the 2001-02 fiscal year Controller's State of California
Community Redevelopment Agencies Annual Report.
   (h) If revised reports have been accepted by the Controller on or
before January 1, 2004, the Director of Finance shall use appropriate
data that has been certified by the Controller for the purpose of
making the determinations required by subdivision (a).




33681.10.  (a) (1) For the purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of this
section, the payment of which is to be made in whole or in part,
directly or indirectly, out of taxes allocated to the agency pursuant
to Section 33670, and that is required by law or provision of the
existing indebtedness to be made during the fiscal year of the
relevant allocation required by Section 33681.9:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency, whether funded, refunded, assumed,
or otherwise, pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2001-02 fiscal year.
   (G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
   (2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section, if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33681.9.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this section if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) During the 2003-04 fiscal year, an agency that has adopted a
resolution pursuant to subdivision (c) may, pursuant to subdivision
(a) of Section 33681.9, allocate to the auditor less than the amount
required by subdivision (a) of Section 33681.9, if the agency finds
that either of the following has occurred:
   (1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33681.9 is
necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the agency during
the applicable fiscal year and that are used by the agency for that
purpose, and the agency has no other funds that can be used to pay
this existing indebtedness, and no other feasible method to reduce or
avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.9.
   (c) (1) Any agency that, pursuant to subdivision (b), intends to
allocate to the auditor less than the amount required by subdivision
(a) of Section 33681.9 shall adopt, prior to December 31, 2003, after
a noticed public hearing, a resolution that lists all of the
following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the 2003-04 fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
2003-04 fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that, pursuant to subdivision (b), determines
that it will be unable in the 2003-04 fiscal year, to allocate the
full amount required by subdivision (a) of Section 33681.9 shall,
subject to paragraph (3), enter into an agreement with the
legislative body by February 15, 2004, to fund the payment of the
difference between the full amount required to be paid pursuant to
subdivision (a) of Section 33681.9 and the amount available for
allocation by the agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the redevelopment agency to finance a
portion of a redevelopment project within the meaning of Section 16
of Article XVI of the California Constitution. This indebtedness
shall be payable from tax revenues allocated to the agency pursuant
to Section 33670, and any other funds received by the agency. The
obligations imposed by paragraph (1) shall remain an indebtedness of
the agency to the legislative body until paid in full, or until the
agency and the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
these terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails, under either Section 33681.9 or
subdivision (d), to transmit the full amount of funds required by
Section 33681.9, is precluded by court order from transmitting that
amount, or is otherwise unable to meet its full obligation pursuant
to Section 33681.9, the county auditor, by no later than May 15,
2004, shall transfer any amount necessary to meet the obligation
determined for that agency in paragraph (1) of subdivision (c) of
Section 33681.9 from the legislative body's property tax allocation
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code.



33681.11.  (a) In lieu of the remittance required by Section
33681.9, during the 2003-04 fiscal year, a legislative body may,
prior to May 10, 2004, remit an amount equal to the amount determined
for the agency pursuant to subparagraph (I) of paragraph (2) of
subdivision (a) of Section 33681.9 to the county auditor for deposit
in the county's Educational Revenue Augmentation Fund created
pursuant to Article 3 (commencing with Section 97) of Chapter 6 of
Part 0.5 of Division 1 of the Revenue and Taxation Code.
   (b) The legislative body may make the remittance authorized by
this section from any funds that are legally available for this
purpose. No moneys held in an agency's Low and Moderate Income
Housing Fund shall be used for this purpose.
   (c) If the legislative body, pursuant to subdivision (d) of
Section 33681.9, reported to the county auditor that it intended to
remit the amount in lieu of the agency and the legislative body fails
to transmit the full amount as authorized by this section by May 10,
2004, the county auditor, no later than May 15, 2004, shall transfer
an amount necessary to meet the obligation from the legislative body'
s property tax allocation pursuant to Chapter 6 (commencing with
Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation
Code. If the amount of the legislative body's property tax allocation
is not sufficient to meet this obligation, the county auditor shall
transfer an additional amount necessary to meet this obligation from
the property tax increment revenue apportioned to the agency pursuant
to Section 33670, provided that no moneys allocated to the agency's
Low and Moderate Income Housing Fund shall be used for this purpose.




33681.12.  (a) (1) During the 2004-05 fiscal year, a redevelopment
agency shall, prior to May 10, remit an amount equal to the amount
determined for that agency pursuant to subparagraph (I) of paragraph
(2) to the county auditor for deposit in the county's Educational
Revenue Augmentation Fund created pursuant to Article 3 (commencing
with Section 97) of Chapter 6 of Part 0.5 of Division 1 of the
Revenue and Taxation Code. During the 2005-06 fiscal year, a
redevelopment agency shall, prior to May 10, remit an amount equal to
the amount determined for that agency pursuant to subparagraph (I)
of paragraph (2) to the county auditor for deposit in the county's
Educational Revenue Augmentation Fund created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code.
   (2) For the 2004-05 and 2005-06 fiscal years, on or before
November 15, the Director of Finance shall do all of the following:
   (A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401, 33607.5, or
33676.
   (B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing agencies pursuant to Section 33401, 33607.5, or
33676.
   (C) Determine a percentage factor by dividing one hundred
twenty-five million dollars ($125,000,000) by the amount determined
pursuant to subparagraph (B).
   (D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33607.5, or 33676.
   (F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
apportioned to affected taxing agencies pursuant to Section 33401,
33607.5, or 33676.
   (G) Determine a percentage factor by dividing one hundred
twenty-five million dollars ($125,000,000) by the amount determined
pursuant to subparagraph (F).
   (H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
   (I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
   (J) Notify each agency and each legislative body of the amount
determined pursuant to subparagraph (I).
   (K) Notify each county auditor of the amounts determined pursuant
to subparagraph (I) for each agency in his or her county.
   (3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670.
   (b) (1) Notwithstanding Sections 33334.2, 33334.3, and 33334.6,
and any other provision of law, in order to make the full allocation
required by this section, an agency may borrow up to 50 percent of
the amount required to be allocated to the Low and Moderate Income
Housing Fund pursuant to Sections 33334.2, 33334.3, and 33334.6
during the 2004-05 fiscal year and, if applicable, the 2005-06 fiscal
year, unless executed contracts exist that would be impaired if the
agency reduced the amount allocated to the Low and Moderate Income
Housing Fund pursuant to the authority of this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys are remitted to the county auditor for
deposit in the county's Educational Revenue Augmentation Fund
pursuant to subdivision (a).
   (c) In order to make the allocation required by this section, an
agency may use any funds that are legally available and not legally
obligated for other uses, including, but not limited to, reserve
funds, proceeds of land sales, proceeds of bonds or other
indebtedness, lease revenues, interest, and other earned income. No
moneys held in a low- and moderate-income fund as of July 1 of the
applicable fiscal year may be used for this purpose.
   (d) The legislative body shall by March 1 report to the county
auditor as to how the agency intends to fund the allocation required
by this section, or that the legislative body intends to remit the
amount in lieu of the agency pursuant to Section 33681.14.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the determinations required by subdivision (a), the
Director of Finance shall use those amounts reported as the "Tax
Increment Retained by Agency" for all agencies and for each agency in
the most recent published edition of the Controller's Community
Redevelopment Agencies Annual Report made pursuant to Section 12463.3
of the Government Code.
   (h) If revised reports have been accepted by the Controller on or
before September 1, 2005, the Director of Finance shall use
appropriate data that has been certified by the Controller for the
purpose of making the determinations required by subdivision (a).
   (i) (1) Notwithstanding any other provision of law, a city, city
and county, or county redevelopment agency may enter into a loan
agreement with the legislative body to have the agency remit to the
county's Educational Revenue Augmentation Fund for each of the
2004-05 and 2005-06 fiscal years an amount greater than that
determined pursuant to subparagraph (I) of paragraph (2) of
subdivision (a) or, for the 2009-10 fiscal year, to have the agency
remit to the county auditor on the city's, city and county's, or
county's behalf all or a portion of the reduction amount determined
for the county under Section 100.06 of the Revenue and Taxation Code,
if, in either instance, all of the following conditions are met:
   (A) The agency does not exercise its authority under subdivision
(b) to borrow from its Low and Moderate Income Housing Fund to
finance its payments to the county's Educational Revenue Augmentation
Fund or to the county auditor.
   (B) The agency does not have any outstanding loans from its Low
and Moderate Income Housing Fund that were made under subdivision (b)
of Section 33681.7, or subdivision (b) of Section 33681.9.
   (C) The loan agreement requires the city, city and county, or
county to repay any excess remitted amounts or amounts paid to the
city, city and county, or county auditor on the county's behalf in
the 2009-10 fiscal year, including interest, to the agency within
three fiscal years subsequent to the fiscal year in which the loan is
made.
   (D) The agency making the loan does not participate in pooled
borrowing under Section 33681.15.
   (2) A loan agreement described in paragraph (1) shall be
transmitted to the county auditor not later than December 1 of the
fiscal year in which the loan is made. Any amount remitted by the
agency to the county Educational Revenue Augmentation Fund for the
2004-05 or 2005-06 fiscal year in excess of the amount determined
pursuant to paragraph (1) of subdivision (a) shall be credited to the
amount that would otherwise be subtracted by the county auditor
pursuant to subdivision (a) of Section 97.71 of the Revenue and
Taxation Code for, as applicable, the 2004-05 and 2005-06 fiscal
years.
   (3) Notwithstanding subparagraph (C) of paragraph (1), a county
redevelopment agency and a legislative body that have entered into a
loan agreement for the 2004-05 or 2005-06 fiscal year under paragraph
(1) may, by mutual consent, adopt either or both of the following
modifications to that agreement:
   (A) The repayment period may be extended, but the full repayment
shall be completed no later than June 30, 2021.
   (B) The repayment obligation may be offset by the amount of any
expenditures by the county for capital improvements or deferred
maintenance that substantially benefit any or all of the
redevelopment project areas of the redevelopment agency if the agency
approves the expenditure and the agency adopts a finding that the
expenditure furthers the goals and objectives of the agency's
redevelopment plan or plans.


33681.13.  (a) (1) For the purpose of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of this
section, the payment of which is to be made in whole or in part,
directly or indirectly, out of taxes allocated to the agency pursuant
to Section 33670, and that is required by law or provision of the
existing indebtedness to be made during the fiscal year of the
relevant allocation required by Section 33681.12.
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency whether funded, refunded, assumed,
or otherwise pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2002-03 fiscal year.
   (G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
   (2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section, if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33681.12.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this section if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) During the 2004-05 and 2005-06 fiscal years, an agency that
has adopted a resolution pursuant to subdivision (c) may, pursuant to
subdivision (a) of Section 33681.12, allocate to the auditor less
than the amount required by subdivision (a) of Section 33681.12, if
the agency finds that either of the following has occurred:
   (1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33681.12 is
necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the agency during
the applicable fiscal year and that are used by the agency for that
purpose, and the agency has no other funds that can be used to pay
this existing indebtedness, and no other feasible method to reduce or
avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.12.
   (c) (1) Any agency that, pursuant to subdivision (b), intends to
allocate to the auditor less than the amount required by subdivision
(a) of Section 33681.12 shall adopt, prior to December 31 of the
applicable fiscal year, after a noticed public hearing, a resolution
that lists all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that, pursuant to subdivision (b), determines
that it will be unable either in the 2004-05 or the 2005-06 fiscal
year, to allocate the full amount required by subdivision (a) of
Section 33681.12 shall, subject to paragraph (3), enter into an
agreement with the legislative body by February 15 of the applicable
fiscal year, to fund the payment of the difference between the full
amount required to be paid pursuant to subdivision (a) of Section
33681.12 and the amount available for allocation by the agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the redevelopment agency to finance a
portion of a redevelopment project within the meaning of Section 16
of Article XVI of the California Constitution. This indebtedness
shall be payable from tax revenues allocated to the agency pursuant
to Section 33670, and any other funds received by the agency. The
obligations imposed by paragraph (1) shall remain an indebtedness of
the agency to the legislative body until paid in full, or until the
agency and the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
these terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails, under either Section 33681.12 or
subdivision (d), to transmit the full amount of funds required by
Section 33681.12, is precluded by court order from transmitting that
amount, or is otherwise unable to meet its full obligation pursuant
to Section 33681.12, the county auditor, by no later than May 15 of
the applicable fiscal year, shall transfer any amount necessary to
meet the obligation determined for that agency in paragraph (1) of
subdivision (c) of Section 33681.12 from the legislative body's
allocations pursuant to Chapter 6 (commencing with Section 95) of
Part 0.5 of Division 1 of the Revenue and Taxation Code.




33681.14.  (a) In lieu of the remittance required by Section
33681.12, during either the 2004-05 or 2005-06 fiscal year, a
legislative body may, prior to May 10 of the applicable fiscal year,
remit an amount equal to the amount determined for the agency
pursuant to subparagraph (I) of paragraph (2) of subdivision (a) of
Section 33681.12 to the county auditor for deposit in the county's
Educational Revenue Augmentation Fund created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code.
   (b) The legislative body may make the remittance authorized by
this section from any funds that are legally available for this
purpose. No moneys held in an agency's Low and Moderate Income
Housing Fund shall be used for this purpose.
   (c) If the legislative body, pursuant to subdivision (d) of
Section 33681.12, reported to the county auditor that it intended to
remit the amount in lieu of the agency and the legislative body fails
to transmit the full amount as authorized by this section by May 10
of the applicable fiscal year, the county auditor, no later than May
15 of the applicable fiscal year, shall transfer an amount necessary
to meet the obligation from the legislative body's allocations
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code. If the amount of the
legislative body's allocations are not sufficient to meet this
obligation, the county auditor shall transfer an additional amount
necessary to meet this obligation from the property tax increment
revenue apportioned to the agency pursuant to Section 33670, provided
that no moneys allocated to the agency's Low and Moderate Income
Housing Fund shall be used for this purpose.



33681.15.  (a) For the purposes of this section, an "authorized
issuer" is limited to a joint powers entity created pursuant to
Article 1 (commencing with Section 6500) of Chapter 5 of Division 7
of Title 1 of the Government Code that consists of no less than 100
local agencies issuing bonds pursuant to the Marks-Roos Local Bond
Pooling Act of 1984 (commencing with Section 6584) of the Government
Code.
   (b) An authorized issuer may issue bonds, notes, or other evidence
of indebtedness to provide net proceeds to make one or more loans to
one or more redevelopment agencies to be used by the agency to
timely make the payment required by Section 33681.12.
   (c) With the prior approval of the legislative body by adoption of
a resolution by a majority of that body that recites that a first
lien on the property tax revenues allocated to the legislative body
will be created in accordance with subdivision (h), an agency may
enter into an agreement with an authorized issuer issuing bonds
pursuant to subdivision (b) to repay a loan used to make the payment
required by Section 33681.12, notwithstanding the expiration of the
time limit on establishing loans, advances, advances and
indebtedness, and the time limit on repayment of indebtedness. For
the purpose of calculating the amount that has been divided and
allocated to the redevelopment agency to determine whether the
limitation adopted pursuant to Section 33333.2 or 33333.4 or pursuant
to an agreement or court order has been reached, any funds used to
repay a loan entered into pursuant to this section shall be deducted
from the amount of property tax revenue deemed to have been received
by the agency.
   (d) A loan made pursuant to this section shall be repayable by the
agency from any available funds of the agency not otherwise
obligated for other uses and shall be repayable by the agency on a
basis subordinate to all existing and future obligations of the
agency.
   (e) Upon making a loan to an agency pursuant to this section, the
trustee for the bonds issued to provide the funds to make the loan
shall timely pay, on behalf of the agency, to the county auditor of
the county in which the agency is located the net proceeds (after
payment of costs of issuance, credit enhancement costs, and reserves,
if any) of the loan in payment in full or in part, as directed by
the agency, of the amount required to be paid by the agency pursuant
to Section 33681.12 and shall provide the county auditor with the
repayment schedule for the loan, together with the name of the
trustee.
   (f) In the event the agency shall, at any time and from time to
time, fail to repay timely the loan in accordance with the schedule
provided to the county auditor, the trustee for the bonds shall
promptly notify the county auditor of the amount of the payment on
the loan that is past due.
   (g) The county auditor shall reallocate from the legislative body
and shall pay, on behalf of the agency, the past due amount from the
first available proceeds of the property tax allocation that would
otherwise be transferred to the legislative body pursuant to Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. This transfer shall be deemed a
reallocation of the property tax revenue from the legislative body to
the agency for the purpose of payment of the loan, and not as a
payment by the legislative body on the loan.
   (h) To secure repayment of a loan to an agency made pursuant to
this section, the trustee for the bonds issued to provide the funds
to make the loan shall have a lien on the property tax revenues
allocated to the legislative body pursuant to Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code. This lien shall arise by operation of this section
automatically upon the making of the loan without the need for any
action on the part of any person. This lien shall be valid, binding,
perfected, and enforceable against the legislative body, its
successors, creditors, purchasers, and all others asserting rights in
those property tax revenues, irrespective of whether those persons
have notice of the lien, irrespective of the fact that the property
tax revenues subject to the lien may be commingled with other
property, and without the need for physical delivery, recordation,
public notice, or any other act. This lien shall be a first priority
lien on these property tax revenues. This lien shall not apply to any
portion of the property taxes allocated to the agency pursuant to
Section 33670.



33682.  (a) (1) For the purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of the statute
that adds this chapter, the payment of which is to be made in whole
or in part, directly or indirectly, out of taxes allocated to the
agency pursuant to Section 33670, and which is required by law or
provision of the existing indebtedness to be made during the 1992-93
fiscal year:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency (whether funded, refunded, assumed,
or otherwise) pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation which, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, which may not exceed 90 percent of the amount spent
for those purposes in the 1991-92 fiscal year.
   (G) Obligations imposed by law with respect to activities which
occurred prior to the effective date of the act that adds this
chapter.
   (2) Existing indebtedness incurred prior to the effective date of
the statute that adds this article may be refinanced, funded, or
restructured after that date, and shall remain existing indebtedness
for the purposes of this section, if the annual debt service during
the 1992-93 fiscal year does not increase and the refinancing does
not reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33681.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this chapter if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) (1) During the 1992-93 fiscal year, an agency that has adopted
a resolution pursuant to subdivision (c) may allocate to the school
and community college districts less than the amount required by
subdivision (a) of Section 33681, if the agency finds that either of
the following has occurred:
   (A) That the difference between the amount allocated and the
amount required by subdivision (a) of Section 33681 is necessary to
make payments on existing indebtedness that are due or required to be
committed, set aside, or reserved by the agency during the 1992-93
fiscal year and that are used by the agency for that purpose, and the
agency has no other funds that can be used to pay this existing
indebtedness.
   (B) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.
   (2) If the agency allocates to the school and community college
districts less than the total amount required by subdivision (a) of
Section 33681, it shall reduce the payments to each district on a pro
rata basis.
   (c) (1) Any agency which, pursuant to subdivision (b), allocates
to the school or community college districts less than the amount
required by subdivision (a) of Section 33681 shall adopt, prior to
November 1, 1992, for the 1992-93 fiscal year, after a noticed public
hearing, a resolution which lists all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of the act that adds this article.
   (B) Each indebtedness on which a payment is required to be made
during the 1992-93 fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
1992-93 fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be certified by the chief fiscal officer of the
agency.
   (d) Any agency that pays to the school or community college
districts less than the amount required by subdivision (a) of Section
33681 during the 1992-93 fiscal year shall pay the difference
between the full amount required to be paid by this section and the
amount already paid to the school or community college districts
prior to June 30, 1997.



33682.  (a) (1) For the purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of the statute
that adds this chapter, the payment of which is to be made in whole
or in part, directly or indirectly, out of taxes allocated to the
agency pursuant to Section 33670, and which is required by law or
provision of the existing indebtedness to be made during the 1992-93
fiscal year:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency (whether funded, refunded, assumed,
or otherwise) pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation which, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, which may not exceed 90 percent of the amount spent
for those purposes in the 1991-92 fiscal year.
   (G) Obligations imposed by law with respect to activities which
occurred prior to the effective date of the act that adds this
chapter.
   (2) Existing indebtedness incurred prior to the effective date of
the statute that adds this article may be refinanced, refunded, or
restructured after that date, and shall remain existing indebtedness
for the purposes of this section, if the annual debt service during
the 1992-93 fiscal year does not increase and the refinancing does
not reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33681.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this chapter if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) During the 1992-93 fiscal year, an agency that has adopted a
resolution pursuant to subdivision (c) may, pursuant to subdivision
(a) of Section 33681, allocate to the auditor less than the amount
required by subdivision (a) of Section 33681, if the agency finds
that either of the following has occurred:
   (1) That the difference between the amount allocated and the
amount required by subdivision (a) of Section 33681 is necessary to
make payments on existing indebtedness that are due or required to be
committed, set aside, or reserved by the agency during the 1992-93
fiscal year and that are used by the agency for that purpose, and the
agency has no other funds that can be used to pay this existing
indebtedness, and no other feasible method to reduce or avoid this
indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.
   (c) (1) Any agency that, pursuant to subdivision (b), allocates to
the auditor less than the amount required by subdivision (a) of
Section 33681 shall adopt, prior to December 31, 1992, for the
1992-93 fiscal year, after a noticed public hearing, a resolution
which lists all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of the act that adds this article.
   (B) Each indebtedness on which a payment is required to be made
during the 1992-93 fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
1992-93 fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be certified by the chief fiscal officer of the
agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that, pursuant to subdivision (b), determines
that it will be unable to allocate the full amount required by
subdivision (a) of Section 33681 shall, subject to paragraph (3),
enter into an agreement with the legislative body by February 15,
1993, to fund the payment of the difference between the full amount
required to be paid pursuant to subdivision (a) of Section 33681 and
the amount available for allocation by the agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the redevelopment agency to finance a
portion of a redevelopment project within the meaning of Section 16
of Article XVI the California Constitution. This indebtedness shall
be payable from tax revenues allocated to the agency pursuant to
Section 33670, and any other funds received by the agency. The
obligations imposed by paragraph (1) shall remain an indebtedness of
the agency to the legislative body until paid in full, or until the
agency and the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
these terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails, under either Section 33681 or subdivision
(d), to transmit the full amount of funds required by Section 33681,
is precluded by court order from transmitting that amount, or is
otherwise unable to meet its full obligation pursuant to Section
33681, the county auditor, by no later than May 15, 1993, shall
transfer any amount necessary to meet the obligation determined for
that agency in subparagraph (D) of paragraph (2) of subdivision (a)
of Section 33681 from the legislative body's property tax allocation
pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of
Division 1 of the Revenue and Taxation Code.
   (f) It is the intent of the Legislature in enacting this section
that this section supersede and be operative in place of Section
33682 of the Health and Safety Code as added by Senate Bill 617 of
the 1991-92 Regular Session.


33682.1.  For purposes of Section 33682, "existing indebtedness"
also means an obligation incurred pursuant to a reimbursement
agreement made for the purpose of funding an unfunded liability of a
fire and police retirement system of a charter city meeting all of
the criteria specified in Section 33608. This section shall not be
applied retroactively.



33682.5.  (a) (1) For the purposes of this section, "existing
indebtedness" means one or more of the following obligations incurred
by a redevelopment agency prior to the effective date of the statute
that adds this chapter, the payment of which is to be made in whole
or in part, directly or indirectly, out of taxes allocated to the
agency pursuant to Section 33670, and which is required by law or
provision of the existing indebtedness to be made during the fiscal
year of the relevant allocation required by Section 33681.5:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency (whether funded, refunded, assumed,
or otherwise) pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 1991-92 fiscal year.
   (G) Obligations imposed by law with respect to activities which
occurred prior to the effective date of the act that adds this
chapter.
   (2) Existing indebtedness incurred prior to the effective date of
the statute that adds this article may be refinanced, refunded, or
restructured after that date, and shall remain existing indebtedness
for the purposes of this section, if the annual debt service during
that fiscal year does not increase over the prior fiscal year and the
refinancing does not reduce the ability of the agency to make the
payment required by subdivision (a) of Section 33681.5.
   (3) For the purposes of this section, indebtedness shall be deemed
to be incurred prior to the effective date of this chapter if the
agency has entered into a binding contract subject to normal
marketing conditions, to deliver the indebtedness, or if the
redevelopment agency has received bids for the sale of the
indebtedness prior to that date and the indebtedness is issued for
value and evidence thereof is delivered to the initial purchaser no
later than 30 days after the date of the contract or sale.
   (b) During the 1993-94 or 1994-95 fiscal year, an agency that has
adopted a resolution pursuant to subdivision (c) may, pursuant to
subdivision (a) of Section 33681.5, allocate to the auditor less than
the amount required by subdivision (a) of Section 33681.5, if the
agency finds that either of the following has occurred:
   (1) That the difference between the amount allocated and the
amount required by subdivision (a) of Section 33681.5 is necessary to
make payments on existing indebtedness that are due or required to
be committed, set aside, or reserved by the agency during the
applicable fiscal year and that are used by the agency for that
purpose, and the agency has no other funds that can be used to pay
this existing indebtedness, and no other feasible method to reduce or
avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33681.5.
   (c) (1) Any agency that, pursuant to subdivision (b), allocates to
the auditor less than the amount required by subdivision (a) of
Section 33681.5 shall adopt, prior to December 31 of the relevant
fiscal year, after a noticed public hearing, a resolution which lists
all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of the act that adds this article.
   (B) Each indebtedness on which a payment is required to be made
during the relevant fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
relevant fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that, pursuant to subdivision (b), determines
that it will be unable in either the 1993-94 or 1994-95 fiscal year
to allocate the full amount required by subdivision (a) of Section
33681.5 shall, subject to paragraph (3), enter into an agreement with
the legislative body by February 15 of the relevant fiscal year to
fund the payment of the difference between the full amount required
to be paid pursuant to subdivision (a) of Section 33681.5 and the
amount available for allocation by the agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the redevelopment agency to finance a
portion of a redevelopment project within the meaning of Section 16
of Article XVI the California Constitution. This indebtedness shall
be payable from tax revenues allocated to the agency pursuant to
Section 33670, and any other funds received by the agency. The
obligations imposed by paragraph (1) shall remain an indebtedness of
the agency to the legislative body until paid in full, or until the
agency and the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
these terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails, under either Section 33681.5 or
subdivision (d), to transmit the full amount of funds required by
Section 33681.5, is precluded by court order from transmitting that
amount, or is otherwise unable to meet its full obligation pursuant
to Section 33681.5, the county auditor, by no later than May 15 of
the fiscal year, shall transfer any amount necessary to meet the
obligation determined for that agency in subparagraph (D) of
paragraph (2) of subdivision (a) of Section 33681.5 from the
legislative body's property tax allocation pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code.



33683.  For the purpose of calculating the amount that has been
divided and allocated to the redevelopment agency to determine
whether the limitation adopted pursuant to Section 33333.2 or 33333.4
or pursuant to agreement or court order has been reached, any
payments made pursuant to subdivision (a) of Sections 33681, 33681.5,
33681.7, 33681.9, and 33681.12 or subdivision (d) of Sections
33681.8, 33681.10, 33682, and 33682.5 with property tax revenues
shall be deducted from the amount of property tax dollars deemed to
have been received by the agency.


33684.  (a) (1) This section shall apply to each redevelopment
project area that, pursuant to a redevelopment plan that contains the
provisions required by Section 33670, meets any of the following:
   (A) Was adopted on or after January 1, 1994, including later
amendments to these redevelopment plans.
   (B) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to include new territory. For plans amended after
January 1, 1994, only the tax increments from territory added by the
amendment shall be subject to this section.
   (C) Was adopted prior to January 1, 1994, but amended after
January 1, 1994, to increase the limitation on the number of dollars
to be allocated to the agency or that increased, or eliminated,
pursuant to paragraph (1) of subdivision (e) of Section 33333.6, the
time limit on the establishing of loans, advances, and indebtedness
established pursuant to paragraphs (1) and (2) of subdivision (a) of
Section 33333.6, as those paragraphs read on December 31, 2001, or
that lengthened the period during which the redevelopment plan is
effective if the redevelopment plan being amended contains the
provisions required by subdivision (b) of Section 33670.
   (2) This section shall apply to passthrough payments, as required
by Sections 33607.5 and 33607.7, for the 2003-04 to 2008-09,
inclusive, fiscal years. For purposes of this section, a passthrough
payment shall be considered the responsibility of an agency in the
fiscal year the agency receives the tax increment revenue for which
the passthrough payment is required.
   (3) For purposes of this section, "local educational agency" is a
school district, a community college district, or a county office of
education.
   (b) On or before October 1, 2008, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2003, and June
30, 2008, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7, and accumulated gross tax increments
through June 30, 2003.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing agency under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2003, and June 30,
2008, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2003, and June 30, 2008, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive sum.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2008. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive sum.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (9) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
   (c) On or before October 1, 2009, each agency shall submit a
report to the county auditor and to each affected taxing entity that
describes each project area, including its location, purpose, date
established, date or dates amended, and statutory and contractual
passthrough requirements. The report shall specify, by year, for each
project area all of the following:
   (1) Gross tax increment received between July 1, 2008, and June
30, 2009, that is subject to a passthrough payment pursuant to
Sections 33607.5 and 33607.7.
   (2) Total passthrough payments to each taxing entity that the
agency deferred pursuant to a subordination agreement approved by the
taxing entity under subdivision (e) of Section 33607.5 and the dates
these deferred payments will be made.
   (3) Total passthrough payments to each taxing entity that the
agency was responsible to make between July 1, 2008, and June 30,
2009, pursuant to Sections 33607.5 and 33607.7, excluding payments
identified in paragraph (2).
   (4) Total passthrough payments that the agency disbursed to each
taxing entity between July 1, 2008, and June 30, 2009, pursuant to
Sections 33607.5 and 33607.7.
   (5) Total sums reported in paragraph (4) for each local
educational agency that are considered to be property taxes under the
provisions of paragraph (4) of subdivision (a) of Sections 33607.5
and 33607.7.
   (6) Total outstanding payment obligations to each taxing entity as
of June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (4) from paragraph (3) and reporting
any positive sum.
   (7) Total outstanding overpayments to each taxing entity as of
June 30, 2009. This amount shall be calculated by subtracting the
amounts reported in paragraph (3) from paragraph (4) and reporting
any positive sum.
   (8) The dates on which the agency made payments identified in
paragraph (6) or intends to make the payments identified in paragraph
(6).
   (d) If an agency reports pursuant to paragraph (6) of subdivision
(b) or paragraph (6) of subdivision (c) that it has an outstanding
passthrough payment obligation to any taxing entity, the agency shall
submit annual updates to the county auditor on October 1 of each
year until such time as the county auditor notifies the agency in
writing that the agency's outstanding payment obligations have been
fully satisfied. The report shall contain both of the following:
   (1) A list of payments to each taxing agency and to the
Educational Revenue Augmentation Fund pursuant to subdivision (j)
that the agency disbursed after the agency's last update filed
pursuant to this subdivision or, if no update has been filed, after
the agency's submission of the reports required pursuant to
subdivisions (b) and (c). The list of payments shall include only
those payments that address obligations identified pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision
(c). The update shall specify the date on which each payment was
disbursed.
   (2) A revised estimate of the agency's total outstanding
passthrough payment obligation to each taxing agency pursuant to
paragraph (6) of subdivision (b) and paragraph (6) of subdivision (c)
and the dates on which the agency intends to make these payments.
   (e) The county auditor shall review each agency's reports
submitted pursuant to subdivisions (b) and (c) and any other relevant
information to determine whether the county auditor concurs with the
information included in the reports.
   (1) If the county auditor concurs with the information included in
a report, the county auditor shall issue a finding of concurrence
within 45 days.
   (2) If the county auditor does not concur with the information
included in a report or considers the report to be incomplete, the
county auditor shall return the report to the agency within 45 days
with information identifying the elements of the report with which
the county auditor does not concur or considers to be incomplete. The
county auditor shall provide the agency at least 15 days to respond
to concerns raised by the county auditor regarding the information
contained in the report. An agency may revise a report that has not
received a finding of concurrence and resubmit it to the county
auditor.
   (3) If an agency and county auditor do not agree regarding the
passthrough requirements of Sections 33607.5 and 33607.7, an agency
may submit a report pursuant to subdivisions (b) and (c) and a
statement of dispute identifying the issue needing resolution.
   (4) An agency may amend a report for which the county auditor has
issued a finding of concurrence and resubmit the report pursuant to
paragraphs (1), (2), and (3) if any of the following apply:
   (A) The county auditor and agency agree that an issue identified
in the agency's statement of dispute has been resolved and the agency
proposes to modify the sections of the report to conform with the
resolution of the statement of dispute.
   (B) The county auditor and agency agree that the amount of gross
tax increment or the amount of a passthrough payment to a taxing
entity included in the report is not accurate.
   (5) The Controller may revoke a finding of concurrence and direct
the agency to resubmit a report to the county auditor pursuant to
paragraphs (1), (2), and (3) if the Controller finds significant
errors in a report.
   (f) On or before December 15, 2008, and annually thereafter
through 2014, the county auditor shall submit a report to the
Controller that includes all of the following:
   (1) The name of each redevelopment project area in the county for
which an agency must submit a report pursuant to subdivision (b) or
(c) and information as to whether the county auditor has issued a
finding of concurrence regarding the report.
   (2) A list of the agencies for which the county auditor has issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (3) A list of agencies for which the county auditor has not issued
a finding of concurrence for all project areas identified in
paragraph (1).
   (4) Using information applicable to agencies listed in paragraph
(2), the county auditor shall report all of the following:
   (A) The total sums reported by each redevelopment agency related
to each taxing entity pursuant to paragraphs (1) to (7), inclusive,
of subdivision (b) and, on or after December 15, 2009, pursuant to
paragraphs (1) to (7), inclusive, of subdivision (c).
   (B) The names of agencies that have outstanding passthrough
payment obligations to a local educational agency that exceed the
amount of outstanding passthrough payments to the local educational
agency.
   (C) Summary information regarding agencies' stated plans to pay
the outstanding amounts identified in paragraph (6) of subdivision
(b) and paragraph (6) of subdivision (c) and the actual amounts that
have been deposited into the county Educational Revenue Augmentation
Fund pursuant to subdivision (j).
   (D) All unresolved statements of dispute filed by agencies
pursuant to paragraph (3) of subdivision (e) and the county auditor's
analyses supporting the county auditor's conclusions regarding the
issues under dispute.
   (g) (1) On or before February 1, 2009, and annually thereafter
through 2015, the Controller shall submit a report to the Legislative
Analyst's Office and the Department of Finance and provide a copy to
the Board of Governors of the California Community Colleges. The
report shall provide information as follows:
   (A) Identify agencies for which the county auditor has issued a
finding of concurrence for all reports required under subdivisions
(b) and (c).
   (B) Identify agencies for which the county auditor has not issued
a finding of concurrence for all reports required pursuant to
subdivision (b) and all reports required pursuant to subdivision (c)
or for which a finding of concurrence has been withdrawn by the
Controller.
   (C) Summarize the information reported in paragraph (4) of
subdivision (f). This summary shall identify, by local educational
agency and by year, the total amount of passthrough payments that
each local educational agency received, was entitled to receive,
subordinated, or that has not yet been paid, and the portion of these
amounts that are considered to be property taxes for purposes of
Sections 2558, 42238, and 84751 of the Education Code. The report
shall identify, by agency, the amounts that have been deposited to
the county Educational Revenue Augmentation Fund pursuant to
subdivision (j).
   (D) Summarize the statements of dispute. The Controller shall
specify the status of these disputes, including whether the
Controller or other state entity has provided instructions as to how
these disputes should be resolved.
   (E) Identify agencies that have outstanding passthrough payment
liabilities to a local educational agency that exceed the amount of
outstanding passthrough overpayments to the local educational agency.
   (2) On or before February 1, 2009, and annually thereafter through
2015, the Controller shall submit a report to the State Department
of Education and the Board of Governors of the California Community
Colleges. The report shall identify, by local educational agency and
by year of receipt, the total amount of passthrough payments that the
local educational agency received from redevelopment agencies listed
in subparagraph (A) of paragraph (1).
   (h) (1) On or before April 1, 2009, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2003-04 to 2007-08,
inclusive, fiscal years the difference between 43.3 percent of the
amount reported pursuant to paragraph (2) of subdivision (g) and the
amount subtracted from each school district's apportionment pursuant
to paragraph (6) of subdivision (h) of Section 42238 of the Education
Code.
   (B) Calculate for each county superintendent of schools for the
2003-04 to 2007-08, inclusive, fiscal years the difference between 19
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount received pursuant to Sections 33607.5
and 33607.7 and subtracted from each county superintendent of schools
apportionment pursuant to subdivision (c) of Section 2558 of the
Education Code.
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
apportionments. After April 1, 2009, however, the department shall
not notify a school district or county superintendent of schools if
the amount calculated in subparagraph (A) or (B) is the same amount
as the department calculated in the preceding year.
   (2) On or before April 1, 2010, and annually thereafter until
April 1, 2015, the State Department of Education shall do all of the
following:
   (A) Calculate for each school district for the 2008-09 fiscal year
the difference between 43.3 percent of the amount reported pursuant
to paragraph (2) of subdivision (g) and the amount subtracted from
each school district's apportionment pursuant to paragraph (6) of
subdivision (h) of Section 42238 of the Education Code.
   (B) Calculate for each county superintendent of schools for the
2008-09 fiscal year the difference between 19 percent of the amount
reported pursuant to paragraph (2) of subdivision (g) and the amount
received pursuant to Sections 33607.5 and 33607.7 and subtracted from
each county superintendent of schools apportionment pursuant to
subdivision (c) of Section 2558 of the Education Code.
   (C) Notify each school district and county superintendent of
schools for which any amount calculated in subparagraph (A) or (B) is
nonzero as to the reported change and its resulting impact on
revenue limit apportionments. After April 1, 2010, however, the
department shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) or (B) is the same amount as the department calculated in the
preceding year.
   (3) For the purposes of Article 3 (commencing with Section 41330)
of Chapter 3 of Part 24 of Division 3 of the Education Code, the
amounts reported to each school district and county superintendent of
schools in the notification required pursuant to subparagraph (C) of
paragraph (1) and subparagraph (C) of paragraph (2) shall be deemed
to be apportionment significant audit exceptions and the date of
receipt of that notification shall be deemed to be the date of
receipt of the final audit report that includes those audit
exceptions.
   (4) On or before March 1, 2009, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on apportionments. After March 1, 2009,
however, the board shall not notify a school district or county
superintendent of schools if the amount calculated in subparagraph
(A) is the same amount as the board calculated in the preceding year.
   (5) On or before March 1, 2010, and annually thereafter until
March 1, 2015, the Board of Governors of the California Community
Colleges shall do all of the following:
   (A) Calculate for each community college district for the 2003-04
to 2007-08, inclusive, fiscal years the difference between 47.5
percent of the amount reported pursuant to paragraph (2) of
subdivision (g) and the amount subtracted from each district's total
revenue owed pursuant to subdivision (d) of Section 84751 of the
Education Code.
   (B) Notify each community college district for which any amount
calculated in subparagraph (A) is nonzero as to the reported change
and its resulting impact on revenue apportionments. After March 1,
2010, however, the board shall not notify a community college
district if the amount calculated in subparagraph (A) is the same
amount as the board calculated in the preceding year.
   (6) A community college district may submit documentation to the
Board of Governors of the California Community Colleges showing that
all or part of the amount reported to the district pursuant to
subparagraph (B) of paragraph (4) and subparagraph (B) of paragraph
(5) was previously reported to the California Community Colleges for
the purpose of the revenue level calculations made pursuant to
Section 84751 of the Education Code. Upon acceptance of the
documentation, the board of governors shall adjust the amounts
calculated in paragraphs (4) and (5) accordingly.
   (7) The Board of Governors of the California Community Colleges
shall make corrections in any amounts allocated in any fiscal year to
each community college district for which any amount calculated in
paragraphs (4) and (5) is nonzero so as to account for the changes
reported pursuant to paragraph (4) of subdivision (b) and paragraph
(4) of subdivision (c). The board may make the corrections over a
period of time, not to exceed five years.
   (i) (1) After February 1, 2009, for an agency listed on the most
recent Controller's report pursuant to subparagraph (B) or (E) of
paragraph (1) of subdivision (g), all of the following shall apply:
   (A) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
   (B) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640).
   (C) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
   (i) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in subparagraph (B) whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460) of
this chapter.
   (ii) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
   (iii) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (iv) Obligations incurred pursuant to Section 33445.
   (v) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (vi) Obligations incurred pursuant to Section 33401.
   (vii) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency was first listed on the
Controller's report pursuant to subparagraph (B) or (E) of paragraph
(1) of subdivision (g).
   (2) After February 1, 2009, an agency identified in subparagraph
(B) or (E) of paragraph (1) of subdivision (g) shall incur interest
charges on any passthrough payment that is made to a local
educational agency more than 60 days after the close of the fiscal
year in which the passthrough payment was required. Interest shall be
charged at a rate equal to 150 percent of the current Pooled Money
Investment Account earnings annual yield rate and shall be charged
for the period beginning 60 days after the close of the fiscal year
in which the passthrough payment was due through the date that the
payment is made.
   (3) The Controller, with the concurrence of the Director of
Finance, may waive the provisions of paragraphs (1) and (2) for a
period of up to 12 months if the Controller determines all of the
following:
   (A) The county auditor has identified the agency in its most
recent report issued pursuant to paragraph (2) of subdivision (f) as
an agency for which the auditor has issued a finding of concurrence
for all reports required pursuant to subdivisions (b) and (c).
   (B) The agency has filed a statement of dispute on an issue or
issues that, in the opinion of the Controller, are likely to be
resolved in a manner consistent with the agency's position.
   (C) The agency has made passthrough payments to local educational
agencies and the county Educational Revenue Augmentation Fund, or has
had funds previously withheld by the auditor, in amounts that would
satisfy the agency's passthrough payment requirements to local
educational agencies if the issue or issues addressed in the
statement of dispute were resolved in a manner consistent with the
agency's position.
   (D) The agency would sustain a fiscal hardship if it made
passthrough payments to local educational agencies and the county
Educational Revenue Augmentation Fund in the amounts estimated by the
county auditor.
   (j) Notwithstanding any other provision of law, if an agency
report submitted pursuant to subdivision (b) or (c) indicates
outstanding payment obligations to a local educational agency, the
agency shall make these outstanding payments as follows:
   (1) Of the outstanding payments owed to school districts,
including any interest payments pursuant to paragraph (2) of
subdivision (i), 43.3 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the school district or districts.
   (2) Of the outstanding payments owed to community college
districts, including any interest payments pursuant to paragraph (2)
of subdivision (i), 47.5 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the community college district or districts.
   (3) Of the outstanding payments owed to county offices of
education, including any interest payments pursuant to paragraph (2)
of subdivision (i), 19 percent shall be deposited in the county
Educational Revenue Augmentation Fund and the remainder shall be
allocated to the county office of education.
   (k) (1) 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 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, 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.
   (2) Notwithstanding any other provision of law, no funds deposited
in the county Educational Revenue Augmentation Fund pursuant to
subdivision (j) shall be distributed to a community college district.
   (l) A county may require an agency to reimburse the county for any
expenses incurred by the county in performing the services required
by this section.



33685.  (a) (1) For the 2008-09 fiscal year a redevelopment agency
shall remit, as determined by the Director of Finance, prior to May
10, an amount equal to the amount determined for that agency pursuant
to subparagraph (K) of paragraph (2) to the county auditor for
deposit in the county Educational Revenue Augmentation Fund, created
pursuant to Article 3 (commencing with Section 97) of Chapter 6 of
Part 0.5 of Division 1 of the Revenue and Taxation Code.
Notwithstanding any other provision of law, in the 2008-09 fiscal
year, no funds deposited in the county Educational Revenue
Augmentation Fund pursuant to this section shall be distributed to a
community college district.
   (2) On or before November 15, 2008, the Director of Finance shall
do all of the following:
   (A) (i) Determine the value of five percent of the statewide total
property tax revenue apportioned to agencies pursuant to Section
33670.
   (ii) If the value determined pursuant to clause (i) exceeds
three-hundred fifty million dollars ($350,000,000), the value
determined in clause (i) shall be allocated to each agency as
provided in paragraphs (B) to (J), inclusive.
   (iii) If the value determined pursuant to clause (i) does not
exceed three-hundred fifty million dollars ($350,000,000),
three-hundred fifty million dollars ($350,000,000) shall be allocated
to each agency as provided in subparagraphs (B) to (J), inclusive.
   (B) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (C) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (D) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (C).
   (E) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (B) by the percentage factor
determined pursuant to subparagraph (D).
   (F) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (G) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (H) Determine a percentage factor by dividing the amount
determined pursuant to subparagraph (A) by two and then by the amount
determined pursuant to subparagraph (G).
   (I) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (F) by the percentage factor
determined pursuant to subparagraph (H).
   (J) Add the amount determined pursuant to subparagraph (E) to the
amount determined pursuant to subparagraph (I).
   (K) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Educational Revenue Augmentation Fund
pursuant to paragraph (1).
   (3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
   (b) (1) Notwithstanding any other provision of law, to make the
full allocation required by this section, an agency may borrow up to
50 percent of the amount required to be allocated to the Low and
Moderate Income Housing Fund, pursuant to Sections 33334.2, 33334.3,
and 33334.6, unless, in a given fiscal year, executed contracts exist
that would be impaired if the agency reduced the amount allocated to
the Low and Moderate Income Housing Fund pursuant to the authority
of this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full within 10 years following
the date on which moneys are remitted to the county auditor for
deposit in the county Educational Revenue Augmentation Fund pursuant
to subdivision (a).
   (c) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income. No moneys held in
a low- and moderate-income fund as of July 1 of the applicable fiscal
year may be used for this purpose.
   (d) The legislative body shall by March 1 of each year report to
the county auditor as to how the agency intends to fund the
allocation required by this section, or that the legislative body
intends to remit the amount in lieu of the agency pursuant to Section
33687.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the annual determinations required by subdivision
(a), the Director of Finance shall use those amounts reported in
"Table 7, Assessed Valuation, Tax Increment Distribution and
Statement of Indebtedness" for all agencies and for each agency in
the most recent published edition of the Controller's Community
Redevelopment Agencies Annual Report made pursuant to Section 12463.3
of the Government Code.
   (h) If revised reports have been accepted by the Controller on or
before September 1 of the applicable fiscal year, the Director of
Finance shall use appropriate data that has been certified by the
Controller for the purpose of making the determinations required by
subdivision (a).
   (i) Nothing in this section shall be construed as extending the
time limits on the ability of agencies to do any of the following:
   (1) Establish loans, advances, or indebtedness.
   (2) Receive tax increment revenues.
   (3) Exercise eminent domain powers.



33686.  (a) (1) For purposes of this section, "existing indebtedness"
means one or more of the following obligations incurred by a
redevelopment agency prior to the effective date of this section, the
payment of which is to be made in whole or in part, directly or
indirectly, out of taxes allocated to the agency pursuant to Section
33670, and that is required by law or provision of the existing
indebtedness to be made during the fiscal year of the relevant
allocation required by Section 33685:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency whether funded, refunded, assumed,
or otherwise pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2005-06 fiscal year.
   (G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
   (2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33685.
   (3) For purposes of this section, indebtedness shall be deemed to
be incurred prior to the effective date of this section if the agency
has entered into a binding contract subject to normal marketing
conditions or to deliver the indebtedness, or if the redevelopment
agency has received bids for the sale of the indebtedness prior to
that date and the indebtedness is issued for value and evidence
thereof is delivered to the initial purchaser no later than 30 days
after the date of the contract or sale.
   (b) For the 2008-09 fiscal year, an agency that has adopted a
resolution pursuant to subdivision (c) may allocate, pursuant to
subdivision (a) of Section 33685, to the auditor less than the amount
required by subdivision (a) of Section 33685 if the agency finds
that any of the following has occurred:
   (1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33685 is
necessary to make payments on existing indebtedness that are due or
required to be committed, set aside, or reserved by the agency during
the 2008-09 fiscal year and that are used by the agency for that
purpose, and the agency has no other funds that can be used to pay
this existing indebtedness and no other feasible method to reduce or
avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33685.
   (c) (1) Any agency that intends to allocate, pursuant to
subdivision (b), to the auditor less than the amount required by
subdivision (a) of Section 33685 shall adopt, prior to December 31,
2008, after a noticed public hearing, a resolution that lists all of
the following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (3) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) Any agency that determines, pursuant to subdivision (b),
that it will be unable in the 2008-09 fiscal year to allocate the
full amount required by subdivision (a) of Section 33685 may enter
into, subject to paragraph (3), an agreement with the legislative
body by February 15, 2009, to fund the payment of the difference
between the full amount required to be paid pursuant to subdivision
(a) of Section 33685 and the amount available for allocation by the
agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the agency to finance a portion of a
redevelopment project within the meaning of Section 16 of Article XVI
of the California Constitution. This indebtedness shall be payable
from tax revenues apportioned to the agency pursuant to Section
33670, and any other funds received by the agency. The obligations
imposed by paragraph (1) shall remain an indebtedness of the agency
to the legislative body until paid in full, or until the agency and
the legislative body otherwise agree.
   (3) The agreement described in paragraph (1) shall be subject to
those terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails to provide to the county auditor the full
payment required under Section 33685, or fails to arrange for full
payment to be provided on the agency's behalf pursuant to subdivision
(d) or by Section 33687 or 33688, all of the following shall apply:
   (1) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
   (2) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640) of this chapter.
   (3) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in paragraph (2), whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460) of
this chapter.
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
   (C) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) Obligations incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (F) Obligations incurred pursuant to Section 33401.
   (G) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency failed to make the
payment required by subdivision (a) of Section 33685.
   (f) The prohibitions identified in subdivision (e) shall be lifted
once the county auditor certifies to the Director of Finance that
the payment required by Section 33685 has been made by the agency, or
that payment has been made on the agency's behalf pursuant to this
section or to Section 33687 or 33688.



33687.  (a) In lieu of the remittance required by Section 33685, for
the 2008-09 fiscal year, a legislative body may remit, prior to May
10, 2009, an amount equal to the amount determined for the agency
pursuant to subparagraph (J) of paragraph (2) of subdivision (a) of
Section 33685 to the county auditor for deposit in the county
Educational Revenue Augmentation Fund, created pursuant to Article 3
(commencing with Section 97) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code. Notwithstanding any other provision
of law, in the 2008-09 fiscal year, no funds deposited in the county
Educational Revenue Augmentation Fund pursuant to this section shall
be distributed to a community college district.
   (b) The legislative body may make the remittance authorized by
this section from any funds that are legally available for this
purpose. No moneys held in an agency's Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6,
shall be used for this purpose.
   (c) If the legislative body, pursuant to subdivision (d) of
Section 33685, reported to the county auditor that it intended to
remit the amount in lieu of the agency and the legislative body fails
to transmit the full amount as authorized by this section by May 10,
2009, the county auditor, no later than May 15, 2009, shall transfer
an amount necessary to meet the obligation from the legislative body'
s allocations pursuant to Chapter 6 (commencing with Section 95) of
Part 0.5 of Division 1 of the Revenue and Taxation Code. If the
amount of the legislative body's allocations are not sufficient to
meet this obligation, the county auditor shall transfer an additional
amount necessary to meet this obligation from the property tax
increment revenue apportioned to the agency pursuant to Section
33670, provided that no moneys allocated to the agency's Low and
Moderate Income Housing Fund shall be used for this purpose.



33688.  (a) For purposes of this section, an "authorized issuer" is
limited to a joint powers entity created pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of Title 1
of the Government Code that consists of no less than 100 local
agencies issuing bonds pursuant to the Marks-Roos Local Bond Pooling
Act of 1984 (Article 4 (commencing with Section 6584) of Chapter 5 of
Division 7 of Title 1 of the Government Code).
   (b) An authorized issuer may issue bonds, notes, or other evidence
of indebtedness to provide net proceeds to make one or more loans to
one or more agencies to be used by the agency to timely make the
payment required by Section 33685, 33690, or 33690.5.
   (c) With the prior approval of the legislative body by adoption of
a resolution by a majority of that body that recites that a first
lien on the property tax revenues allocated to the legislative body
will be created in accordance with subdivision (h), an agency may
enter into an agreement with an authorized issuer issuing bonds
pursuant to subdivision (b) to repay a loan used to make the payment
required by Section 33685, 33690, or 33690.5. For the purpose of
calculating the amount that has been divided and allocated to the
agency to determine whether the limitation adopted pursuant to
Section 33333.2 or 33333.4 or pursuant to an agreement or court order
that has been reached, any funds used to repay a loan entered into
pursuant to this section shall be deducted from the amount of
property tax revenue deemed to have been received by the agency.
   (d) A loan made pursuant to this section shall be repayable by the
agency from any available funds of the agency not otherwise
obligated for other uses and shall be repayable by the agency on a
basis subordinate to all existing and future obligations of the
agency.
   (e) Upon making a loan to an agency pursuant to this section, the
trustee for the bonds issued to provide the funds to make the loan
shall timely pay, on behalf of the agency, to the county auditor of
the county in which the agency is located the net proceeds (after
payment of costs of issuance, credit enhancement costs, and reserves,
if any) of the loan in payment in full or in part, as directed by
the agency, of the amount required to be paid by the agency pursuant
to Section 33685, 33690, or 33690.5 and shall provide the county
auditor with the repayment schedule for the loan, together with the
name of the trustee.
   (f) In the event the agency shall fail to repay timely, at any
time and from time to time, the loan in accordance with the schedule
provided to the county auditor, the trustee for the bonds shall
promptly notify the county auditor of the amount of the payment on
the loan that is past due.
   (g) The county auditor shall reallocate from the legislative body
and shall pay, on behalf of the agency, the past due amount from the
first available proceeds of the property tax allocation that would
otherwise be transferred to the legislative body pursuant to Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. This transfer shall be deemed a
reallocation of the property tax revenue from the legislative body to
the agency for the purpose of payment of the loan, and not as a
payment by the legislative body on the loan.
   (h) To secure repayment of a loan to an agency made pursuant to
this section, the trustee for the bonds issued to provide the funds
to make the loan shall have a lien on the property tax revenues
allocated to the legislative body pursuant to Chapter 6 (commencing
with Section 95) of Part 0.5 of Division 1 of the Revenue and
Taxation Code. This lien shall arise by operation of this section
automatically upon the making of the loan without the need for any
action on the part of any person. This lien shall be valid, binding,
perfected, and enforceable against the legislative body, its
successors, creditors, purchasers, and all others asserting rights in
those property tax revenues, irrespective of whether those persons
have notice of the lien, irrespective of the fact that the property
tax revenues subject to the lien may be commingled with other
property, and without the need for physical delivery, recordation,
public notice, or any other act. This lien shall be a first priority
lien on these property tax revenues. This lien shall not apply to any
portion of the property taxes allocated to the agency pursuant to
Section 33670.



33689.  For the purpose of calculating the amount that has been
divided and allocated to the agency to determine whether the
limitation adopted pursuant to Section 33333.2 or 33333.4 or pursuant
to agreement or court order that has been reached, any payments made
pursuant to subdivision (a) of Section 33685 with property tax
revenues shall be deducted from the amount of property tax dollars
deemed to have been received by the agency.



33690.  (a) (1) (A) For the 2009-10 fiscal year, a redevelopment
agency shall remit, as determined by the Director of Finance, prior
to May 10, 2010, an amount equal to the amount determined for that
agency pursuant to paragraph (2) to the county auditor for deposit in
the county Supplemental Educational Revenue Augmentation Fund that
is established in the county treasury. Notwithstanding any other law,
any funds deposited in the Supplemental Educational Revenue
Augmentation Fund shall not be distributed to a community college
district.
   (B) On or before May 25, 2010, the county auditor shall report to
the Department of Finance each amount transferred to the Supplemental
Educational Revenue Augmentation Fund for the 2009-10 fiscal year.
   (2) On or before November 15, 2009, the Director of Finance shall
do all of the following:
   (A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (C) Determine a percentage factor by dividing one billion seven
hundred million dollars ($1,700,000,000) by two and then by the
amount determined pursuant to subparagraph (B).
   (D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (G) Determine a percentage factor by dividing one billion seven
hundred million dollars ($1,700,000,000) by two and then by the
amount determined pursuant to subparagraph (F).
   (H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
   (I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
   (J) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Supplemental Educational Revenue
Augmentation Fund pursuant to paragraph (1).
   (3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
   (b) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income.
   (c) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow from either the
amount required to be allocated to the Low and Moderate Income
Housing Fund, pursuant to Sections 33334.2, 33334.3, and 33334.6, or
any moneys in that fund, or both, unless executed contracts exist
that would be impaired if the agency reduced the amount allocated to
the Low and Moderate Income Housing Fund or the amount of moneys in
the fund, or both, pursuant to the authority of this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full on or before June 30,
2015. An agency that fails to repay funds borrowed pursuant to this
subdivision shall be required to allocate an additional 5 percent of
all taxes that are allocated to that agency pursuant to Section 33670
for low- and moderate-income housing for the remainder of the time
the agency receives tax revenue pursuant to Section 33670.
   (d) The legislative body shall by March 1, 2010, report to the
county auditor as to how the agency intends to fund the allocation
required by this section, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33692.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the determination required by subdivision (a), the
Director of Finance shall use those amounts reported in "Table 7,
Assessed Valuation, Tax Increment Distribution and Statement of
Indebtedness" for all agencies and for each agency in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report made pursuant to Section 12463.3 of the Government Code,
subject to any adjustments required by subdivision (h).
   (h) With respect to the use of amounts reported in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report for purposes of subdivision (a), both of the following shall
apply:
   (1) If revised reports were accepted by the Controller on or
before September 1, 2008, the Director of Finance shall use
appropriate data that has been certified by the Controller for the
purpose of making the determinations required by subdivision (a).
   (2) The director shall adjust the reported amounts of net and
total tax increment revenue to exclude amounts apportioned to any
redevelopment agency from any territory that has been deleted from
any project area, as reported to the State Board of Equalization in
accordance with Section 33375 prior to August 1, 2009, and that
deletion is not reflected in the Controller's 2006-07 published
report or in the revised reports described in paragraph (1).
   (i) Except as provided in Section 33331.5, nothing in this section
shall be construed as extending the time limits on the ability of
agencies to do both of the following:
   (1) Establish loans, advances, or indebtedness.
   (2) Exercise eminent domain powers.
   (j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Supplemental Educational
Revenue Augmentation Fund by a redevelopment agency pursuant to this
section only to a K-12 school district or county office of education
that is located partially or entirely within any project area of that
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
   (2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Supplemental Educational Revenue Augmentation Fund moneys a district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
   (3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
Second Principal Apportionment for the 2009-10 fiscal year to the
county auditor-controller.
   (B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those districts within the county.
   (4) The county auditor-controller shall notify, on or before May
25, 2010, the Department of Finance of the amount of funding
apportioned to each district or county office of education pursuant
to this subdivision.
   (5) School districts and county offices of education shall use the
funds received under this section to serve pupils living in the
redevelopment areas or in housing supported by redevelopment agency
funds. Redevelopment agencies shall provide whatever information
school districts and county offices of education need to accomplish
this purpose.
   (k) (1) For the 2009-10 fiscal year, the amount of property tax
revenues apportioned to each school district, pursuant to Article 2
(commencing with Section 96.1) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, shall be reduced by the total
amount of Supplemental Educational Revenue Augmentation Fund moneys
the district receives. The amount of property tax revenues that is
the product of this reduction shall be deposited in the county
Supplemental Revenue Augmentation Fund established pursuant to
Section 100.06 of the Revenue and Taxation Code.
   (2) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Supplemental Educational Revenue Augmentation Fund moneys a
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivisions (g) and (h) of Section 41202, and for purposes of
Section 42238 of the Education Code, for the 2009-10 fiscal year.
   (l) For purposes of this section, "K-12 school district" has the
same meaning as a school district, as defined in Section 80 of the
Education Code.
   (m) 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 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, 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.


33690.5.  (a) (1) (A) For the 2010-11 fiscal year a redevelopment
agency shall remit, as determined by the Director of Finance, prior
to May 10, 2011, an amount equal to the amount determined for that
agency pursuant to paragraph (2) to the county auditor for deposit in
the county Supplemental Educational Revenue Augmentation Fund.
   (B) On or before May 25, 2011, the county auditor shall report to
the Department of Finance each amount transferred to the Supplemental
Educational Revenue Augmentation Fund for the 2010-11 fiscal year.
   (2) On or before November 15, 2010, the Director of Finance shall
do all of the following:
   (A) Determine the net tax increment apportioned to each agency
pursuant to Section 33670, excluding any amounts apportioned to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (B) Determine the net tax increment apportioned to all agencies
pursuant to Section 33670, excluding any amounts allocated to
affected taxing entities pursuant to Section 33401, 33607.5, or
33676.
   (C) Determine a percentage factor by dividing three hundred fifty
million dollars ($350,000,000) by two and then by the amount
determined pursuant to subparagraph (B).
   (D) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (A) by the percentage factor
determined pursuant to subparagraph (C).
   (E) Determine the total amount of property tax revenue apportioned
to each agency pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (F) Determine the total amount of property tax revenue apportioned
to all agencies pursuant to Section 33670, including any amounts
allocated to affected taxing entities pursuant to Section 33401,
33607.5, or 33676.
   (G) Determine a percentage factor by dividing three hundred fifty
million dollars ($350,000,000) by two and then by the amount
determined pursuant to subparagraph (F).
   (H) Determine an amount for each agency by multiplying the amount
determined pursuant to subparagraph (E) by the percentage factor
determined pursuant to subparagraph (G).
   (I) Add the amount determined pursuant to subparagraph (D) to the
amount determined pursuant to subparagraph (H).
   (J) Notify each agency, each legislative body, and each county
auditor of each agency's amount. The county auditor shall deposit
these amounts in the county Supplemental Educational Revenue
Augmentation Fund pursuant to paragraph (1).
   (3) The obligation of any agency to make the payments required
pursuant to this subdivision shall be subordinate to the lien of any
pledge of collateral securing, directly or indirectly, the payment of
the principal, or interest on any bonds of the agency including,
without limitation, bonds secured by a pledge of taxes allocated to
the agency pursuant to Section 33670. Agencies shall factor in the
fiscal obligations created by this subdivision when issuing bonded
indebtedness.
   (b) To make the allocation required by this section, an agency may
use any funds that are legally available and not legally obligated
for other uses, including, but not limited to, reserve funds,
proceeds of land sales, proceeds of bonds or other indebtedness,
lease revenues, interest, and other earned income.
   (c) (1) Notwithstanding any other law, to make the full allocation
required by this section, an agency may borrow the amount required
to be allocated to the Low and Moderate Income Housing Fund, pursuant
to Sections 33334.2, 33334.3, and 33334.6, unless, in a given fiscal
year, executed contracts exist that would be impaired if the agency
reduced the amount allocated to the Low and Moderate Income Housing
Fund pursuant to the authority of this subdivision.
   (2) As a condition of borrowing pursuant to this subdivision, an
agency shall make a finding that there are insufficient other moneys
to meet the requirements of subdivision (a). Funds borrowed pursuant
to this subdivision shall be repaid in full on or before June 30,
2016. An agency that fails to repay funds borrowed pursuant to this
subdivision shall be required to allocate an additional 5 percent of
all taxes that are allocated to that agency pursuant to Section 33670
for low- and moderate-income housing for the remainder of the time
the agency receives tax revenue pursuant to Section 33670.
   (d) The legislative body shall by March 1, 2011, report to the
county auditor as to how the agency intends to fund the allocation
required by this section, or that the legislative body intends to
remit the amount in lieu of the agency pursuant to Section 33692.
   (e) The allocation obligations imposed by this section, including
amounts owed, if any, created under this section, are hereby declared
to be an indebtedness of the redevelopment project to which they
relate, payable from taxes allocated to the agency pursuant to
Section 33670, and shall constitute an indebtedness of the agency
with respect to the redevelopment project until paid in full.
   (f) It is the intent of the Legislature, in enacting this section,
that these allocations directly or indirectly assist in the
financing or refinancing, in whole or in part, of the community's
redevelopment project pursuant to Section 16 of Article XVI of the
California Constitution.
   (g) In making the determination required by subdivision (a), the
Director of Finance shall use those amounts reported in "Table 7,
Assessed Valuation, Tax Increment Distribution and Statement of
Indebtedness" for all agencies and for each agency in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report made pursuant to Section 12463.3 of the Government Code,
subject to any adjustments required by subdivision (h).
   (h) With respect to the use of amounts reported in the 2006-07
edition of the Controller's Community Redevelopment Agencies Annual
Report for purposes of subdivision (a), both of the following shall
apply:
   (1) If revised reports were accepted by the Controller on or
before September 1, 2008, the Director of Finance shall use
appropriate data that has been certified by the Controller for the
purpose of making the determinations required by subdivision (a).
   (2) The director shall adjust the reported amounts of net and
total tax increment revenue to exclude amounts apportioned to any
redevelopment agency from any territory that has been deleted from
any project area, as reported to the State Board of Equalization in
accordance with Section 33375 prior to August 1, 2009, and that
deletion is not reflected in the Controller's 2006-07 published
report or in the revised reports described in paragraph (1).
   (i) Except as provided in Section 33331.5, nothing in this section
shall be construed as extending the time limits on the ability of
agencies to do both of the following:
   (1) Establish loans, advances, or indebtedness.
   (2) Exercise eminent domain powers.
   (j) (1) Notwithstanding Sections 97.2 and 97.3 of Revenue and
Taxation Code, the county auditor-controller shall distribute the
funds that are remitted to the county Supplemental Educational
Revenue Augmentation Fund by a redevelopment agency pursuant to this
section only to a K-12 school district or county office of education
that is located partially or entirely within any project area of that
redevelopment agency in an amount proportional to the average daily
attendance of each school district.
   (2) The county auditor-controller shall notify each K-12 school
district, and the State Department of Education, of the amount of
Supplemental Educational Revenue Augmentation Fund moneys a district
receives pursuant to this section from each redevelopment agency. The
county auditor-controller shall also notify each K-12 school
district receiving funds pursuant to paragraph (1) of the project
area boundaries of each redevelopment agency from which the K-12
school district received funds.
   (3) (A) The county superintendent of schools shall provide the
average daily attendance reported for each school district as of the
Second Principal Apportionment for the 2009-10 fiscal year to the
county auditor-controller.
   (B) The county auditor-controller shall, based on information
provided by the county superintendent of schools pursuant to
subparagraph (A), allocate the funding pursuant to this subdivision
to those districts within the county.
   (4) The county auditor-controller shall notify, on or before May
25, 2011, the Department of Finance of the amount of funding
apportioned to each district or county office of education pursuant
to this subdivision.
   (5) School districts and county offices of education shall use the
funds received under this section to serve pupils living in the
redevelopment areas or in housing supported by redevelopment agency
funds. Redevelopment agencies shall provide whatever information
school districts need to accomplish this purpose.
   (k) (1) For the 2010-11 fiscal year, the amount of property tax
revenues apportioned to each school district, pursuant to Article 2
(commencing with Section 96.1) of Chapter 6 of Part 0.5 of Division 1
of the Revenue and Taxation Code, shall be reduced by the total
amount of Supplemental Educational Revenue Augmentation Fund moneys
the district receives. The amount of property tax revenues that is
the product of this reduction shall be deposited in the county
Supplemental Revenue Augmentation Fund established pursuant to
Section 100.06 of the Revenue and Taxation Code.
   (2) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the total
amount of Supplemental Educational Revenue Augmentation Fund moneys a
district receives, regardless of the actual date the funds are
received, pursuant to this section from each redevelopment agency
shall be deemed to be "allocated local proceeds of taxes," as defined
in subdivisions (g) and (h) of Section 41202 and for purposes of
Section 42238 of the Education Code, for the 2010-11 fiscal year.
   (l) For purposes of this section, "K-12 school district" has the
same meaning as a school district, as defined in Section 80 of the
Education Code.
   (m) 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 of, clause
(i) of subparagraph (B) of paragraph (4) of subdivision (d) of
Section 97.3 of, 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.


33691.  (a) (1) For purposes of this section, "existing indebtedness"
means one or more of the following obligations incurred by a
redevelopment agency prior to the effective date of this section, the
payment of which is to be made in whole or in part, directly or
indirectly, out of taxes allocated to the agency pursuant to Section
33670, and that is required by law or provision of the existing
indebtedness to be made during the fiscal year of the relevant
allocation required by Section 33690 or 33690.5:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by the agency whether funded, refunded, assumed,
or otherwise pursuant to Article 5 (commencing with Section 33640).
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, or local agencies, or a
private entity.
   (C) A contractual obligation that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) An obligation incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2.
   (F) An amount, to be expended for the operation and administration
of the agency, that may not exceed 90 percent of the amount spent
for those purposes in the 2005-06 fiscal year.
   (G) Obligations imposed by law with respect to activities that
occurred prior to the effective date of the act that adds this
section.
   (2) Existing indebtedness incurred prior to the effective date of
this section may be refinanced, refunded, or restructured after that
date, and shall remain existing indebtedness for the purposes of this
section if the annual debt service during that fiscal year does not
increase over the prior fiscal year and the refinancing does not
reduce the ability of the agency to make the payment required by
subdivision (a) of Section 33690 or subdivision (a) of Section
33690.5.
   (3) For purposes of this section, indebtedness shall be deemed to
be incurred prior to the effective date of this section if the agency
has entered into a binding contract subject to normal marketing
conditions or to deliver the indebtedness, or if the redevelopment
agency has received bids for the sale of the indebtedness prior to
that date and the indebtedness is issued for value and evidence
thereof is delivered to the initial purchaser no later than 30 days
after the date of the contract or sale.
   (b) For the 2009-10 fiscal year or the 2010-11 fiscal year, as
applicable, an agency that has adopted a resolution pursuant to
subdivision (c) may allocate, pursuant to subdivision (a) of Section
33690 or subdivision (a) of Section 33690.5, as applicable, to the
auditor less than the amount required by subdivision (a) of Section
33690 or subdivision (a) of Section 33690.5, as applicable, if the
agency finds that any of the following has occurred:
   (1) That the difference between the amount allocated to the agency
and the amount required by subdivision (a) of Section 33690 or
subdivision (a) of Section 33690.5, as applicable, is necessary to
make payments on existing indebtedness that are due or required to be
committed, set aside, or reserved by the agency during the 2009-10
fiscal year or the 2010-11 fiscal year, as applicable, and that are
used by the agency for that purpose, and the agency has no other
funds that can be used to pay this existing indebtedness and no other
feasible method to reduce or avoid this indebtedness.
   (2) The agency has no other funds to make the allocation required
by subdivision (a) of Section 33690 or subdivision (a) of Section
33690.5, as applicable.
   (c) (1) Any agency that intends to allocate, pursuant to
subdivision (b), to the auditor less than the amount required by
subdivision (a) of Section 33690 shall adopt, prior to December 31,
2009, after a noticed public hearing, a resolution that lists all of
the following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (2) Any agency that intends to allocate, pursuant to subdivision
(b), to the auditor less than the amount required by subdivision (a)
of Section 33690.5 shall adopt, prior to December 31, 2010, after a
noticed public hearing, a resolution that lists all of the following:
   (A) Each existing indebtedness incurred prior to the effective
date of this section.
   (B) Each indebtedness on which a payment is required to be made
during the applicable fiscal year.
   (C) The amount of each payment, the time when it is required to be
paid, and the total of the payments required to be made during the
applicable fiscal year. For indebtedness that bears interest at a
variable rate, or for short-term indebtedness that is maturing during
the fiscal year and that is expected to be refinanced, the amount of
payments during the fiscal year shall be estimated by the agency.
   (3) The information contained in the resolution required by this
subdivision shall be reviewed for accuracy by the chief fiscal
officer of the agency.
   (4) The legislative body shall additionally adopt the resolution
required by this section.
   (d) (1) (A) Any agency that determines, pursuant to subdivision
(b), that it will be unable in the 2009-10 fiscal year to allocate
the full amount required by subdivision (a) of Section 33690 may
enter into, subject to paragraph (3), an agreement with the
legislative body by February 15, 2010, to fund the payment of the
difference between the full amount required to be paid pursuant to
subdivision (a) of Section 33690 and the amount available for
allocation by the agency.
   (B) Any agency that determines, pursuant to subdivision (b), that
it will be unable in the 2010-11 fiscal year to allocate the full
amount required by subdivision (a) of Section 33690.5 may enter into,
subject to paragraph (3), an agreement with the legislative body by
February 15, 2011, to fund the payment of the difference between the
full amount required to be paid pursuant to subdivision (a) of
Section 33690.5 and the amount available for allocation by the
agency.
   (2) The obligations imposed by paragraph (1) are hereby declared
to be indebtedness incurred by the agency to finance a portion of a
redevelopment project within the meaning of Section 16 of Article XVI
of the California Constitution. This indebtedness shall be payable
from tax revenues apportioned to the agency pursuant to Section
33670, and any other funds received by the agency. The obligations
imposed by paragraph (1) shall remain an indebtedness of the agency
to the legislative body until paid in full, or until the agency and
the legislative body otherwise agree.
   (3) The agreements described in paragraph (1) shall be subject to
those terms and conditions specified in a written agreement between
the legislative body and the agency.
   (e) If the agency fails to provide to the county auditor the full
payment required under Section 33690 by May 10, 2010, or 33690.5 by
May 10, 2011, as applicable, or fails to arrange for full payment to
be provided on the agency's behalf pursuant to subdivision (d) or by
Section 33688 or 33692, all of the following shall apply:
   (1) The agency shall be prohibited from adding new project areas
or expanding existing project areas. For purposes of this paragraph,
"project area" has the same meaning as in Sections 33320.1 to
33320.3, inclusive, and Section 33492.3.
   (2) The agency shall be prohibited from issuing new bonds, notes,
interim certificates, debentures, or other obligations, whether
funded, refunded, assumed, or otherwise, pursuant to Article 5
(commencing with Section 33640) of this chapter.
   (3) The agency shall be prohibited from encumbering any funds or
expending any moneys derived from any source, except that the agency
may encumber funds and expend funds to pay, if any, all of the
following:
   (A) Bonds, notes, interim certificates, debentures, or other
obligations issued by an agency before the imposition of the
prohibition in paragraph (2), whether funded, refunded, assumed, or
otherwise, pursuant to Article 5 (commencing with Section 33460) of
this chapter.
   (B) Loans or moneys advanced to the agency, including, but not
limited to, loans from federal, state, local agencies, or a private
entity.
   (C) Contractual obligations that, if breached, could subject the
agency to damages or other liabilities or remedies.
   (D) Obligations incurred pursuant to Section 33445.
   (E) Indebtedness incurred pursuant to Section 33334.2 or 33334.6.
   (F) Obligations incurred pursuant to Section 33401.
   (G) An amount, to be expended for the monthly operation and
administration of the agency, that may not exceed 75 percent of the
average monthly amount spent for those purposes in the fiscal year
preceding the fiscal year in which the agency failed to make the
payment required by subdivision (a) of Section 33690 or subdivision
(a) of Section 33690.5, as applicable.
   (f) The prohibitions identified in subdivision (e) shall be lifted
once the county auditor certifies to the Director of Finance that
the payment required by Section 33690 or 33690.5, as applicable, has
been made by the agency, or that payment has been made on the agency'
s behalf pursuant to this section or to Section 33688 or 33692.




33691.5.  (a) A redevelopment agency that fails to allocate to the
county auditor either or both of the full remittances required
pursuant to subdivision (a) of Section 33690 or subdivision (a) of
Section 33690.5, respectively, or that fails to arrange for full
payment of either or both of those remittances pursuant to
subdivision (c) of Section 33688, subdivision (d) of Section 33691,
or Section 33692, shall be exempt from the prohibitions set forth in
subdivision (e) of Section 33691 and the requirement set forth in
paragraph (4) of subdivision (k) of Section 33334.2, if the county
auditor certifies to the Department of Finance that all of the
following conditions have been met:
   (1) The agency adopted the resolution described in paragraph (1)
or paragraph (2) of subdivision (c) of Section 33691, and failed to
make the full remittance by May 10, 2010, or May 10, 2011, as
applicable, pursuant to Section 33692.
   (2) The county reduced the tax increment revenue payable to the
agency by at least 20 percent in the 2009-10 fiscal year.
   (3) The agency has entered into an agreement with the Department
of Finance, as described in subdivision (d) of Section 33691, with
respect to either or both of the full remittances, and that agreement
(A) commits the agency to paying the remaining amount due to satisfy
either or both of the full remittances over a time period of no more
than the earlier of 30 years or the life of the redevelopment agency
and (B) requires the first payment towards that obligation to be due
to the county on or before May 10, 2011, without regard to whether
that payment is for the full remittance for the 2009-10 fiscal year,
2010-11 fiscal year, or both.
   (b) An agency that is making payments as described in paragraph
(3) of subdivision (a) may use all legally available funds to make
those payments, and may pay off the outstanding balance of either or
both of those full remittances at any time.



33692.  (a) In lieu of the remittance required by Section 33690, for
the 2009-10 fiscal year, a legislative body may remit, prior to May
10, 2010, an amount equal to the amount determined for the agency
pursuant to paragraph (2) of subdivision (a) of Section 33690 to the
county auditor for deposit in the county Supplemental Educational
Revenue Augmentation Fund, to be established in the county treasury
pursuant to paragraph (1) of subdivision (a) of Section 33690.
   (b) In lieu of the remittance required by Section 33690.5, for the
2010-11 fiscal year, a legislative body may remit, prior to May 10,
2011, an amount equal to the amount determined for the agency
pursuant to paragraph (2) of subdivision (a) of Section 33690.5 to
the county auditor for deposit in the county Supplemental Educational
Revenue Augmentation Fund, to be established in the county treasury
pursuant to paragraph (1) of subdivision (a) of Section 33690.
   (c) The legislative body may make the remittance authorized by
this section from any funds that are legally available for this
purpose.