Redevelopment.

(1) The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in blighted areas in those communities known as project areas. Existing law requires that each redevelopment agency submit the final report of any audit undertaken by any other local, state, or federal government entity to its legislative body and to additionally present an annual report to the legislative body containing specified information. This bill would impose new requirements on the agency with respect to implementation plans and evidentiary standards and expand existing prohibitions on agency direct assistance to certain projects. The bill would require the Controller, on or before January 1, 2013, to issue regulations revising and consolidating reporting for redevelopment agencies and to develop a simple, uniform, and consistent methodology for the calculation, payment, and reporting of passthrough payments. The bill would also require the Controller to review and revise the guidelines adopted for the content of the final report at least every 5 years, as specified. The bill would also transfer certain reporting requirements from the Department of Housing and Community Development to the Controller, as specified, and require that agencies send certain notifications to the Controller in addition to sending the notifications to the department. The bill would require that the department develop guidelines establishing standards to evaluate agency performance. (2) The bill would require the State Auditor to conduct audits of selected redevelopment agencies to ensure compliance with existing law. The bill would require each agency, immediately upon receipt, to deposit 0.025% of tax increment into the Redevelopment Agency State Audit Fund, which the bill would create, to fund the audits. (3) The California Constitution authorizes a redevelopment agency to receive funding through tax increment revenues attributable to increases in assessed property tax valuation of property in a project area due to redevelopment. Existing law prescribes the procedure by which the tax increment revenue is allocated. The bill would provide, for purposes of the above provisions, tax increment revenue transferred to an agency exclude any funds considered educational agency property tax revenues. The bill would provide that this provision applies only to tax increment revenues generated from any redevelopment project established on or after January 1, 2012. (4) The bill would authorize an agency to loan or grant funds for projects relating to energy efficiency. The bill would also authorize an agency to provide direct assistance, as described, to businesses within project areas for industrial or manufacturing uses or similar uses of statewide benefit.