CA SB734

Authorizes successor agencies and taxing entities to modify passthrough agreements from former redevelopment agencies entered into before January 1, 1994, to reduce or eliminate interest owed on deferred passthrough payments.

Sets the interest rate to 0% for any modified passthrough agreement effective upon agreement execution, with a maximum repayment term of 40 years.

Permits modification agreements to forgive the entirety or a portion of the outstanding principal amount of deferred passthrough payments owed to taxing entities.

Requires county auditor-controllers to account for any passthrough agreement modifications when computing passthrough payment amounts under existing law.

Declares that these provisions serve the public purpose of preventing hardship on local agencies constrained by high-interest deferred passthrough obligations and do not constitute a gift of public funds under the California Constitution.