BILL NUMBER: AB 811 CHAPTERED
BILL TEXT
CHAPTER 159
FILED WITH SECRETARY OF STATE JULY 21, 2008
APPROVED BY GOVERNOR JULY 21, 2008
PASSED THE SENATE JUNE 26, 2008
PASSED THE ASSEMBLY JUNE 30, 2008
AMENDED IN SENATE JUNE 16, 2008
AMENDED IN SENATE MAY 23, 2008
AMENDED IN SENATE MARCH 11, 2008
AMENDED IN ASSEMBLY JANUARY 24, 2008
AMENDED IN ASSEMBLY JANUARY 7, 2008
INTRODUCED BY Assembly Members Levine and Beall
(Principal coauthor: Assembly Member Garcia)
(Coauthors: Assembly Members Huffman, Krekorian, and Leno)
FEBRUARY 22, 2007
An act to amend Sections 5898.12, 5898.20, 5898.22, and 5898.30
of, and to add Sections 5898.14 and 5898.21 to, the Streets and
Highways Code, relating to contractual assessments, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 811, Levine. Contractual assessments: energy efficiency
improvements.
Existing law authorizes the legislative body of any city, as
defined, to determine that it would be convenient and advantageous to
designate an area within which authorized city officials and free
and willing property owners may enter into contractual assessments
and make arrangements to finance public improvements to specified
lots or parcels under certain circumstances. Existing law requires
the legislative body to make these determinations by adopting a
resolution indicating its intention to do so and requires the
resolution to include certain information, including, but not limited
to, identification of the kinds of public works that may be
financed, a description of the boundaries of the area within which
contractual assessments may be entered into, and a description of the
proposed arrangements for financing the program. Existing law also
directs an appropriate city official to prepare a report to include,
among other things, the terms and conditions that would be agreed to
by a property owner within the contractual assessment area and the
city and identification of the types of facilities that may be
financed through the use of contractual assessments.
This bill would additionally authorize a legislative body of any
city, as defined, to determine that it would be in the public
interest to designate an area within which authorized city officials
and free and willing property owners may enter into contractual
assessments to finance the installation of distributed generation
renewable energy sources or energy efficiency improvements that are
permanently fixed to real property, as specified. The bill would
require the resolution of intention to include, among other things,
the kinds of distributed generation renewable energy sources or
energy efficiency improvements that may be financed as well as a
statement specifying that it is in the public interest to finance
those distributed generation renewable energy sources or energy
efficiency improvements. The bill would further require the report to
include, among other things, the types of distributed generation
renewable energy sources or energy efficiency improvements that may
be financed through the use of contractual assessments. The bill
would authorize a property owner, upon written consent of an
authorized city official, to purchase directly the related equipment
and materials for the installation of distributed generation
renewable energy sources or energy efficiency improvements and to
contract directly for the installation of those sources or
improvements. The bill would make findings and a declaration in this
regard.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5898.12 of the Streets and Highways Code is
amended to read:
5898.12. (a) It is the intent of the Legislature that this
chapter should be used to finance public improvements to lots or
parcels which are developed and where the costs and time delays
involved in creating an assessment district pursuant to other
provisions of this division or any other law would be prohibitively
large relative to the cost of the public improvements to be financed.
(b) It is also the intent of the Legislature that this chapter
should be used to finance the installation of distributed generation
renewable energy sources or energy efficiency improvements that are
permanently fixed to residential, commercial, industrial, or other
real property.
(c) This chapter shall not be used to finance facilities for
parcels which are undergoing development.
(d) This chapter shall not be used to finance the purchase or
installation of appliances that are not permanently fixed to
residential, commercial, industrial, or other real property.
(e) Assessments may be levied pursuant to this chapter only with
the free and willing consent of the owner of each lot or parcel on
which an assessment is levied at the time the assessment is levied.
SEC. 2. Section 5898.14 is added to the Streets and Highways Code,
to read:
5898.14. (a) The Legislature finds all of the following:
(1) Energy conservation efforts, including the promotion of energy
efficiency improvements to residential, commercial, industrial, or
other real property are necessary to address the issue of global
climate change.
(2) The upfront cost of making residential, commercial,
industrial, or other real property more energy efficient prevents
many property owners from making those improvements. To make those
improvements more affordable and to promote the installation of those
improvements, it is necessary to authorize an alternative procedure
for authorizing assessments to finance the cost of energy efficiency
improvements.
(b) The Legislature declares that a public purpose will be served
by a contractual assessment program that provides the legislative
body of any city with the authority to finance the installation of
distributed generation renewable energy sources and energy efficiency
improvements that are permanently fixed to residential, commercial,
industrial, or other real property.
SEC. 3. Section 5898.20 of the Streets and Highways Code is
amended to read:
5898.20. (a) (1) The legislative body of any city may determine
that it would be convenient and advantageous to designate an area
within the city, which may encompass the entire city or a lesser
portion, within which authorized city officials and property owners
may enter into contractual assessments for public improvements and to
make financing arrangements pursuant to this chapter.
(2) The legislative body of any city may also determine that it
would be convenient, advantageous, and in the public interest to
designate an area within the city, which may encompass the entire
city or a lesser portion, within which authorized city officials and
property owners may enter into contractual assessments to finance the
installation of distributed generation renewable energy sources or
energy efficiency improvements that are permanently fixed to real
property pursuant to this chapter.
(b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so. The
resolution of intention shall include a statement that the city
proposes to make contractual assessment financing available to
property owners, shall identify the kinds of public works,
distributed generation renewable energy sources, or energy efficiency
improvements that may be financed, shall describe the boundaries of
the area within which contractual assessments may be entered into,
and shall briefly describe the proposed arrangements for financing
the program. The resolution of intention shall state that it is in
the public interest to finance the installation of distributed
generation renewable energy sources or energy efficiency
improvements, or both, pursuant to paragraph (2) of subdivision (a),
if applicable. The resolution shall state that a public hearing
should be held at which interested persons may object to or inquire
about the proposed program or any of its particulars, and shall state
the time and place of the hearing. The resolution shall direct an
appropriate city official to prepare a report pursuant to Section
5898.22 and to enter into consultations with the county auditor's
office or county controller's office in order to reach agreement on
what additional fees, if any, will be charged to the city or county
for incorporating the proposed contractual assessments into the
assessments of the general taxes of the city or county on real
property.
(c) As used in this chapter, each of the following terms has the
following meaning:
(1) Notwithstanding Section 5005, "city" means a city, county, or
city and county.
(2) "Legislative body" has the same meaning as defined in Section
5006.
SEC. 4. Section 5898.21 is added to the Streets and Highways Code,
to read:
5898.21. Notwithstanding any other provision of this chapter,
upon the written consent of an authorized city official, the proposed
arrangements for financing the program pertaining to the
installation of distributed generation renewable energy sources or
energy efficiency improvements that are permanently fixed to real
property may authorize the property owner to purchase directly the
related equipment and materials for the installation of distributed
generation renewable energy sources or energy efficiency improvements
and to contract directly for the installation of distributed
generation renewable energy sources or energy efficiency improvements
that are permanently fixed to the property owner's residential,
commercial, industrial, or other real property.
SEC. 5. Section 5898.22 of the Streets and Highways Code is
amended to read:
5898.22. The report shall contain all of the following:
(a) A map showing the boundaries of the territory within which
contractual assessments are proposed to be offered.
(b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the contractual
assessment area and the city.
(c) A statement of city policies concerning contractual
assessments including all of the following:
(1) Identification of types of facilities, distributed generation
renewable energy sources, or energy efficiency improvements that may
be financed through the use of contractual assessments.
(2) Identification of a city official authorized to enter into
contractual assessments on behalf of the city.
(3) A maximum aggregate dollar amount of contractual assessments.
(4) A method for setting requests from property owners for
financing through contractual assessments in priority order in the
event that requests appear likely to exceed the authorization amount.
(d) A plan for raising a capital amount required to pay for work
performed pursuant to contractual assessments. The plan may include
amounts to be advanced by the city through funds available to it from
any source. The plan may include the sale of a bond or bonds or
other financing relationship pursuant to Section 5898.28. The plan
shall include a statement of or method for determining the interest
rate and time period during which contracting property owners would
pay any assessment. The plan shall provide for any reserve fund or
funds. The plan shall provide for the apportionment of all or any
portion of the costs incidental to financing, administration, and
collection of the contractual assessment program among the consenting
property owners and the city.
(e) A report on the results of the consultations with the county
auditor's office or county controller's office concerning the
additional fees, if any, that will be charged to the city or county
for incorporating the proposed contractual assessments into the
assessments of the general taxes of the city or county on real
property, and a plan for financing the payment of those fees.
SEC. 6. Section 5898.30 of the Streets and Highways Code is
amended to read:
5898.30. Assessments levied pursuant to this chapter, and the
interest and any penalties thereon shall constitute a lien against
the lots and parcels of land on which they are made, until they are
paid. Division 10 (commencing with Section 8500) applies to the levy
and collection of assessments levied pursuant to this chapter,
insofar as those provisions are not in conflict with the provisions
of this chapter, including, but not limited to, the collection of
assessments in the same manner and at the same time as the general
taxes of the city on real property are payable and any penalties and
remedies and lien priorities in the event of delinquency and default.
SEC. 7. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order for legislative bodies of cities and free and willing
property owners to enter into contractual assessments to finance the
installation of distributed generation renewable energy sources or
energy efficiency improvements and for the state to begin to
experience the effects of these contractual assessments, such as
saving millions of kilowatthours, as early as this summer when usage
is the highest, it is necessary that this act take effect
immediately.