BILL NUMBER: AB 706	CHAPTERED  07/24/03

	CHAPTER  111
	FILED WITH SECRETARY OF STATE  JULY 24, 2003
	APPROVED BY GOVERNOR  JULY 23, 2003
	PASSED THE ASSEMBLY  JULY 10, 2003
	PASSED THE SENATE  JUNE 24, 2003
	AMENDED IN SENATE  JUNE 9, 2003
	AMENDED IN ASSEMBLY  MAY 12, 2003
	AMENDED IN ASSEMBLY  APRIL 28, 2003
	AMENDED IN ASSEMBLY  APRIL 7, 2003

INTRODUCED BY   Assembly Member Maldonao.

                        FEBRUARY 19, 2003

   An act to add Section 61600.3 to the Government Code, relating to
community services districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 706, Maldonado.  Community services districts.
   The Community Services District Law authorizes a district to
borrow money and incur or assume indebtedness subject to certain
limitations.
   This bill would additionally permit the Los Osos Community
Services District to borrow money consistent with these provisions
for the purpose of making loans to property owners within the
district to pay for the costs of decommissioning septic systems and
constructing lateral connections on private property to facilitate
the connection of those properties to the district's wastewater
treatment system.  The bill would authorize the district to have debt
payments or any delinquency collected with property taxes and to
secure the loan by recording a lien, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 61600.3 is added to the Government Code, to
read:
   61600.3.  (a) The Los Osos Community Services District may,
consistent with Section 61613, borrow money from public or private
lenders and loan those funds to property owners within the district
to pay for the costs of decommissioning septic systems and
constructing lateral connections on private property to facilitate
the connection of those properties to the district's wastewater
treatment system.  The district shall lend money for this purpose at
rates not to exceed its cost of borrowing and the district's costs of
making the loans.  The district may require that the borrower pay
the district's reasonable attorney's fees and administrative costs in
the event the district is required to take legal action to enforce
the provisions of the contract or note securing the loan.
   (b) The district may elect to have the debt payments or any
delinquency collected on the tax roll pursuant to the procedures in
Section 61621.2.
   To secure the loan as a lien on real property, the district shall
follow the procedures for the creation and recordation of special tax
liens in Section 53328.3 of this code and Section 3114.5 of the
Streets and Highways Code.
  SEC. 2.  The Legislature finds and declares that many low-income
property owners in the Los Osos Community Services District cannot
afford to make the necessary connections to the wastewater system
without the financial assistance that this act will enable the
district to provide.  The Legislature further finds and declares that
this need is not common to all districts formed under the Community
Services District Law.  It is therefore declared that a general law
cannot be made applicable within the meaning of Section 16 of Article
IV of the Constitution, and that enactment of this act as a special
law is necessary for the solution of problems existing in the Los
Osos Community Services District.