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CRA Lawsuit Status <P~ I of2 Page 6 ATTACHMENT a .'" '- . "'-.. . .' .,~.:,',;:",t. ....:...- .~~"-.".,:,i: '... .. _~ ,,~~~, " _ ,."-: . ,........,-_.'.' ~. .....r,t'~ ~ff"'. ." ,~)J;Wf"I"'., ,,' ,r.. L", ~ ~ 1. '!~~ ~l . Ii:' (7 "":. . ~~.:...':'1;m,...:... . " '.. ..r.._. ~ _..~....,.,..." . California Redevelopment Association ,,! P.i!l1e~I(',l)ment au':dll~ a.etle~ ton'nlllllltie~ .... April 14, 2010 Executive Di rector's Update Update on CRA Lawsuit Against State of California-April 14,2010 As you know, SERAF payments are due to county auditors no later than May 10. Many redevelopment agencies are concerned about how to prepare for this fast-approaching deadline in light of CRAls pending litigation against the State to have ABx4-26 declared unconstitutional. This update will give agencies the latest information on the progress of ! the litigation and how they should prepare for May 10. I i STATUS: JUDGE CONNELLY SET TO RULE ON OR BEFORE MAY 4 I eRA's lawsuit was argued before Judge Lloyd Connelly of the Sacramento Superior ! Court on February 5 and the supplemental briefing he requested was concluded in early I March. He has had the case under consideration since March 2. On March 30, CRA ; filed a motion for a preliminary injunction/stay, asking the court not to require I redevelopment agencies to make payments to SERAF on May 10, as required by ABx4- ; 26, until the court makes its decision. That motion was set to be heard on April 23. However, Judge Connelly has notified CRA that the hearing date for the motion on the preliminary injunction has been cancelled because he intends to rule on the merits of the case on or before May 4. POTENTIAL OUTCOMES: . If Judge Connelly rules in favor of CRA on the case, we believe the ruling will likely include an injunction suspending the effect of ABx4-26 pending resolution of any appeals. That means agencies would not have to make the May 10 payment. . If the Court rules against CRA, the ruling might or might not include a stay blocking the implementation of ABx4-26. If an adverse ruling does not include a stay, eRA will seek a stay from the Court of Appeal. However, depending on when Judge Connelly issues his decision, there could be very little time to file a request for a stay from the Court of Appeal, receive a ruling on the stay request, and notify redevelopment agencies before the May 10 payment deadline. CRA RECOMMENDATION TO AGENCIES: http://campaign.constantcontact.com/render?v=OO 1 YCG7 _ 2nRMIqfN sIOQg6--aPCm _Xjx... 4/15/2010