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To: Memo to Successor Agency Clients From: Susan E. Bloch Re: AB 1484— Redevelopment Budget Trailer Bill Date: July 5, 2012 Page: 12 establish any other agreements in furtherance of enforceable obligations with the Sponsoring Jurisdiction are invalid until they are included on an approved ROPS." Thus, the status of amended and restated cooperative agreements and funding agreements executed in reliance upon Section 34178(a) (authorizing re -entry into agreements with Oversight Board approval) is in question. Affiliated Entities. AB 1484 expands the definition of "city, county or city and county" to include other public entities and organizations that are controlled by the Sponsoring Jurisdiction. This would enable the State Controller to unwind transfers to such entities pursuant to the "clawback" provisions of the statute . As noted above, this change in definition also causes agreements between redevelopment agencies and entities controlled by their Sponsoring Jurisdiction to be excluded from the definition of enforceable obligation in the context of the Due Diligence Reviews. 6. Additional Clawback Provisions In addition to the ABxl 26 clawback provision directing the State Controller to unwind transfers that took place between redevelopment agencies and public entities after January 1, 2011 unless subject to contractual third -party commitments, AB 1484 includes additional clawback provisions. One directs the State Controller to unwind transfers that Successor Agencies undertook if not pursuant to an enforceable obligation on an approved ROPS . A second provision states that Successor Agencies lack authority to, and shall not, transfer any powers or revenues to any public or private party except pursuant to an enforceable obligation on an approved ROPS, declares such transfers to be void, directs the Successor Agency to reverse such transfers, and provides that the State Controller may review and order the return of revenues or other items of value . 57 7. Bond Proceeds, Contractual Obligations As described above, AB 1484 contains language permitting Successor Agencies to spend the proceeds of pre -2011 bonds under certain circumstances following issuance of a Finding of Completion, but similar authority is not provided for bonds issued after January 1, 2011. The statute still provides that "bond proceeds shall be used for the purposes for which the bonds ss Section 34180(h). 54 Section 34167.10. ss See Section 34167.5. 56 Sections 34167.5, 34178.8. 51 Section 34177.3(c). A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN FRANCISCO SANTA ROSA FRESNO