On December 29, 2011, the California Supreme Court ruled that ABX 126, the Redevelopment Dissolution Act, constitutional. This decision meant that all redevelopment agencies in the State of California were dissolved as of February 1, 2012.
As provided for under the new law, each city may choose to form a Successor Agency for the purposes of winding down the affairs of the previous Redevelopment Agency. The Banning City Council serves as the Successor Agency.
Additionally, an Oversight Board, constituted by appointed members, would also be formed to oversee the activities of the newly created Successor Agency. The 7 member Oversight Board consists of the following members:
One member appointed by the County Board of Supervisors;
One member of the public appointed by the County Board of Supervisors;
One member appointed by the mayor of the city that formed the redevelopment agency;
One member from the recognized employee organization representing the employees of the former redevelopment agency;
One member appointed by the largest special district, by property tax share, with territory in the jurisdiction of the former redevelopment agency;
One member appointed by the Superintendent of Schools to represent schools; and
One member appointed by the Chancellor of the California Community Colleges to represent community colleges in the district.
The Successor Agency and the Oversight Board have fiduciary responsibility to the holders of enforceable obligations and the taxing entities that benefit from the distributions of property tax and other revenue. The Successor Agency and the Oversight Board oversee the "winding down" process of the former Community Redevelopment Agency of the City of Banning.