BILL NUMBER: SB 934 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 1, 2007
INTRODUCED BY Senator Lowenthal
FEBRUARY 23, 2007
An act to add Division 3 (commencing with Section 64100) to Title
6.7 of the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 934, as amended, Lowenthal. Housing and infrastructure zones.
(1) The Community Services District Law identifies the procedures
for district formation and specifies the services that a district may
provide. Among those services are the acquisition, construction,
improvement, maintenance, and operation of recreation facilities,
including parks and open space, and community facilities, including
libraries, and child care facilities; supplying water for any
beneficial use; the collection, treatment, or disposal of sewage,
wastewater, recycled water, stormwater, and solid waste; and the
acquisition, construction, improvement, and maintenance of streets,
roads, rights-of-way, bridges, culverts, drains, curbs, gutters,
sidewalks, and any incidental works.
The Community Redevelopment Law authorizes redevelopment agencies
to pay the principal of, and interest on, indebtedness incurred to
finance or refinance redevelopment, from a portion of property tax
revenues diverted from other taxing agencies. The portion of taxes
diverted is the amount attributable to increases in assessed
valuation of property in the redevelopment project area subsequent to
establishment thereof. This method of financing is commonly known as
"tax increment" financing and is specifically authorized by Section
16 of Article XVI of the California Constitution.
Existing law requires a redevelopment agency to use at least 20%
of its tax increment revenues to increase, improve, and preserve low-
and moderate-income housing available at affordable cost to persons
and families of low or moderate income and lower, very low, and
extremely low income households, unless the agency makes certain
findings. Under existing law, there are programs that provide
assistance for, among other things, multifamily housing, emergency
housing, farmworker housing, and homeownership for low- and very low
income households, and that provide downpayment assistance for
first-time homebuyers.
Existing law sets forth the duties of the California Economic
Development and Infrastructure Development Bank generally in
promoting economic development activities in the state.
This bill would establish a pilot project allowing for the
formation, under criteria developed by specified councils of
governments and the Secretary of Business, Transportation and
Housing, of 100 housing and infrastructure zones in the state. A city
or county would be eligible to apply to its council of governments
or the agency, as applicable, in order to establish a housing and
infrastructure zone, subject to approval by the bank, and specified
reporting requirements. By requiring local governments to perform
certain duties with respect to the selection and establishment of
zones, the bill would impose a state-mandated local program.
The bill would authorize the bank to finance the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of real or other tangible property, for various
purposes, including interchanges, ramps and bridges, arterial
streets, parking facilities, transit facilities, sewage treatment and
water reclamation plants and interceptor pipes, facilities for the
collection and treatment of water for urban uses, child care
facilities, libraries, parks, recreational facilities, open space,
facilities for the transfer and disposal of solid waste, including
transfer stations and vehicles, and housing. The bank would be
authorized to issue bonds and to receive allocations of revenues
resulting from a type of tax increment financing for these purposes.
By requiring local agencies to conduct funding allocation activities,
the bill would impose a state-mandated local program.
The pilot project would end on a specified date, but the bank
would receive tax increment revenues for a period of 20 years after
the date the district was established, plus an additional 10 years
solely for the repayment of debt incurred prior to that date.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that,
if the Commission on State Mandates determines that the bill contains
costs so mandated by the state, reimbursement for those costs shall
be made pursuant to the statutory provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Local governments face significant fiscal impediments to
financing the development and upgrading of essential infrastructure,
including streets, parking facilities, water and sewer systems, and
parks, to serve new high-density housing.
(b) The existing pattern of residential development will continue
to absorb valuable farmland and open space and be located in areas
that are not served by adequate transportation and other essential
utilities and services, unless incentives are provided to locate
high-density residential development in a manner that is consistent
with protecting the state's most valuable natural resources and
encouraging efficient development patterns.
(c) It is therefore the intent of the Legislature in enacting this
act to support and contribute to the financing of this
infrastructure and to accomplish all of the following:
(1) Encourage the location of high-density housing so as to use
available land more efficiently by complementing and enhancing
regional transportation, air quality, and other regional investments,
priorities, and strategies.
(2) Preserve farmland by encouraging high-density housing sited in
accordance with regional growth plans.
(3) Provide incentives to ensure that development occurs where it
makes most sense through a partnership between the state, the local
agency, and the private developer.
(4) Establish a voluntary pilot project to determine whether
providing resources to local governments for infrastructure and
services needed for the concentrated development of high-density
housing will lead to a higher level of housing constructed in
locations that match regionally determined growth principles.
(5) Recognize and protect the principle of local control of local
land use authority of individual cities and counties, while providing
additional resources to jurisdictions that are willing to approve
the development of high-density housing in locations where a more
intensified level of development will yield broader regional
benefits.
(6) Include reasonable accountability measures that will inform
the state of the progress of the pilot project, including how and
where the new financing mechanism adopted pursuant to this act is
used.
(7) Complement the state's investment in transit and other
infrastructure approved by the voters as Propositions 1B and 1C at
the November 6, 2006, statewide general election, while also
providing a longer term financing plan that promotes the development
of higher density development patterns and preserves important open
space and farmland resources.
SEC. 2. Division 3 (commencing with Section 64100) is added to
Title 6.7 of the Government Code, to read:
DIVISION 3. HOUSING AND INFRASTRUCTURE FINANCING ACT OF 2007
CHAPTER 1. GENERAL PROVISIONS
64100. For the purposes of this division, the following terms
shall have the following meanings:
(a) "Council of governments" means the Association of Bay Area
Governments, the Southern California Association of Governments, the
San Diego Association of Governments, or the Sacramento Area Council
of Governments.
(b) "Bank" means the California Infrastructure and Economic
Development Bank created pursuant to Section 63021.
(c) "County," with respect to geographical area, means the
unincorporated area of the county only.
(d) "Housing and infrastructure zone" means an area within a city
or the unincorporated area of a county in which housing or
infrastructure is financed by the bank pursuant to a housing and
infrastructure plan adopted pursuant to Section 64120 and approved
pursuant to Section 64115.
(e) "Low-income families" has the same meaning as that set forth
for "lower income households" in Section 50079.5 of the Health and
Safety Code.
(f) "Moderate-income families" has the same meaning as that set
forth for "persons and families of low or moderate income" in Section
50093 of the Health and Safety Code.
(g) "School entities" has the same meaning as that set forth in
subdivision (f) of Section 95 of the Revenue and Taxation Code.
(h) "Secretary" means the Secretary of Business, Transportation
and Housing.
(i) "Very low income families" has the same meaning as that set
forth for "very low income households" in Section 50105 of the Health
and Safety Code.
64101. (a) This division shall be known and may be cited as the
Housing and Infrastructure Financing Act of 2007.
(b) There is hereby established a pilot project allowing for no
more than 100 housing and infrastructure zones throughout the state
for the purpose of financing the construction of housing and
infrastructure within areas that have been planned to accept
high-density housing so as to preserve environmentally sensitive open
space, habitat, and farmland areas.
(c) It is the priority of the state in implementing this pilot
project to promote high-density housing development close to jobs and
transit and reduce vehicle miles traveled by promoting
pedestrian-oriented connections between residential and commercial
components of the district, in conjunction with the implementation of
voter-approved issuance of bonds to invest in transit, housing, and
other infrastructure.
64102. (a) This division shall become inoperative 20 years after
the date the last zone is authorized pursuant to Chapter 6
(commencing with Section 64150).
(b) Notwithstanding subdivision (a), the bank shall receive an
allocation of taxes pursuant to Section 64135 for the benefit of each
housing and infrastructure zone for a period of 20 years after the
first fiscal year in which the bank authorized the allocation of
taxes pursuant to Section 64115, plus an additional period of 10
years solely for the repayment of debt incurred prior to that date.
CHAPTER 2. HOUSING AND INFRASTRUCTURE ZONES
64110. (a) Each council of governments may propose housing and
infrastructure zones within the region it represents, in response to
an application received pursuant to Section 64114 as follows:
(1) The Southern California Association of Governments may propose
up to 25 housing and infrastructure zones.
(2) The Association of Bay Area Governments may propose up to 20
housing and infrastructure zones.
(3) The San Diego Association of Governments and the Sacramento
Area Council of Governments may each propose up to 15 housing and
infrastructure financing zones.
(b) The secretary may propose up to 25 housing and infrastructure
zones within those areas of the state that are not included within
the jurisdiction of a council of governments.
64112. (a) On or before September 1, 2008, each council of
governments and the secretary shall develop criteria for the
establishment and location of housing and infrastructure zones within
its region. The criteria shall be consistent with the state planning
priorities established by Section 65041.1. Criteria may be
developed, or be based upon, a collaborative regional growth vision,
blueprint, or other similar regional planning effort that identifies
areas and locations where additional job growth, high-density
housing, or other development is preferred to be concentrated to
complement and enhance regional transportation, air quality, and
other regional priorities and strategies, including, but not limited
to, reducing vehicle miles traveled and improving the regional
jobs-housing balance. A council of governments and the secretary may
elect to use previously adopted criteria that meet the requirements
of this subdivision.
(b) A housing and infrastructure zone shall not be located within
a redevelopment project area established pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000) or the
Community Redevelopment Disaster Project Law (Part 1.5 (commencing
with Section 34000) of Division 24 of the Health and Safety Code)
, nor shall any area in the proposed zone have been a
redevelopment project area in the last five years .
(c) Each council of governments and the secretary shall develop a
process that includes the development of draft criteria and the
opportunity for cities and counties within the region and the public
to review and offer comments, before adopting the final criteria.
(d) Each council of governments and the secretary shall present
the criteria developed pursuant to subdivision (a) to the bank and
shall consider the comments of the bank before adopting the final
regional criteria if those comments are received within 120 days of
the date the criteria were submitted to the bank. The final regional
criteria shall be adopted no later than March 1, 2009.
64114. (a) On or before January 1, 2010, and on or before January
1 of each even-numbered year thereafter, a city or a county may file
an application requesting that the council of governments for the
region in which it is located, or the secretary, as applicable, to
establish one or more housing and infrastructure zones within its
jurisdictional boundaries.
(b) The application shall demonstrate how the location of the zone
conforms to the criteria established pursuant to Section 64112, and
shall include the draft housing and infrastructure plan described in
Section 64120.
64115. (a) (1) A council of governments and the secretary, as
applicable, shall evaluate each application submitted by a city or
county within its boundaries pursuant to Section 64114, determine
whether the location of the proposed zone is consistent with the
adopted criteria and the benefits that the region will achieve from
implementation of the housing and infrastructure plan. The council of
governments and the secretary, as applicable, shall rank those
applications that conform to the selection criteria. Draft rankings
shall be presented at one or more public hearings and shall be
modified as appropriate following the public review and comment.
(2) On or before July 1, 2010, and on or before July 1 in each
even-numbered year thereafter, after the conclusion of the period of
public review and comment, the council of governments and the
secretary, as applicable, shall announce its proposed rankings. An
applicant city or county may appeal the proposed rankings to the
governing body of the council of governments or the secretary, as
applicable, if a ranking fails to conform to the selection criteria.
(3) On or before September 1, 2010, and on or before September 1
in each even-numbered year thereafter, after consideration of any
information presented during the appeals process, the council of
governments and the secretary, as applicable, shall adopt its final
rankings and submit its recommendation of the location of housing and
infrastructure zones within its region to the bank.
(b) The bank shall evaluate the applications for the housing and
infrastructure zones that it receives from the councils of government
and the secretary to determine whether they are consistent with the
state planning priorities established by Section 65041.1. The bank
may evaluate the applications for consistency with other criteria
that the bank has adopted pursuant to the Bergeson-Peace
Infrastructure and Economic Development Bank Act (Title 6.7
(commencing with Section 63000)). Based on the economic analysis in
the housing and infrastructure plans prepared pursuant to Section
64120, the bank shall determine the amount of taxes proposed to be
allocated pursuant to Section 64135 to the benefit of each housing
and infrastructure zone for the first 20 years of each zone's
existence. The bank shall then rank the applications and give a
priority to those zones that propose to achieve or exceed average
residential densities of at least 40 dwelling units per acre. The
bank shall not include an application in its rankings if the zone's
proposed average residential density is less than 25 dwelling units
per acre. In evaluating these applications, the bank may solicit
advice from and the assistance of other state agencies, including,
but not limited to, the departments within the Business,
Transportation and Housing Agency, the departments within the
Resources Agency, the Department of Finance, and the Governor's
Office of Planning and Research.
(c) On or before December 1, 2010, and on or before December 1 in
each even-numbered year thereafter, the bank shall announce its
proposed rankings, including the amount of taxes proposed to be
allocated pursuant to Section 64135 to the benefit of each housing
and infrastructure zone for the first 20 years of the zone's
existence. The bank shall notify the councils of government, the
secretary, and the cities and counties that submitted the
applications. After announcing its proposed rankings, the bank shall
provide opportunities for public review and comment.
(d) On or before February 1, 2011, and on or before February 1 in
each odd-numbered year thereafter, the bank shall consider any
comments regarding its proposed rankings of the applications for
housing and infrastructure zones, and then adopt its final rankings.
(e) On or before March 1, 2011, and on or before March 1 in each
odd-numbered year thereafter, the bank may approve one or more
applications for housing and infrastructure zones and authorize the
allocation of taxes pursuant to Section 64135 for the benefit of
those housing and infrastructure zones.
(f) The total amount of taxes that would be allocated from school
entities pursuant to Section 64135 to the benefit of all of the
housing and infrastructure zones approved by the bank pursuant to
this section for the first 20 years of the zones' existence shall not
exceed five hundred million dollars ($500,000,000).
CHAPTER 3. HOUSING AND INFRASTRUCTURE PLAN
64120. (a) An application submitted pursuant to Section 64112
shall include a draft housing and infrastructure plan prepared by the
city or county submitting the application.
(b) The plan shall include text and a diagram or diagrams that
specify all of the following in detail:
(1) The distribution, location, and extent of residential uses,
and commercial or mixed uses, if any, within the zone. The plan shall
provide for the construction of at least 500 new dwelling units.
Commercial, retail, office space, and other uses compatible with
residential development may be included to serve the residents of the
zone and the surrounding community.
(2) The proposed densities of residential development in the zone
in terms of dwelling units per acre. The plan shall provide for
average residential densities of at least 25 dwelling units per acre.
(3) The proposed distribution, location, and extent and intensity
of major components of public and private transportation, sewage,
water, drainage, solid waste disposal, energy, parks, and other
essential facilities proposed to be located within the zone covered
by the plan and needed to support the housing described in paragraph
(1). Infrastructure shall primarily support the residential
development financed by the district.
(4) A program of implementation measures, including, but not
limited to, regulations, programs, public works projects, residential
development projects, and financing measures necessary to carry out
paragraphs (1) to (3), inclusive.
(5) A program to ensure that 20 percent of the housing within the
zone financed by the district is affordable for low- and
moderate-income families with not less than 5 percent affordable to
very low income, 10 percent affordable to low-income, and 5 percent
affordable to moderate-income families. Housing made affordable
pursuant to this program shall remain available at affordable housing
cost to, and occupied by, persons and families of very low, low, and
moderate income for a period of time consistent with subdivision (f)
of Section 33334.3 of the Health and Safety Code.
(6) A program of services and other measures required by the
residential, commercial, or mixed uses included within the zone.
These services and other measures may also benefit existing residents
and areas of the community affected by the development and may
include improvements and services for streets, parks, libraries,
environmental mitigation, schools, and other measures.
(c) The plan shall include a draft economic analysis that
calculates the annual difference between revenues estimated to be
generated from development within the zone and the amount of revenue
estimated to be necessary to service debt for capital costs or to
provide facilities and services, including the affordable housing
required pursuant to paragraph (5) of subdivision (b), within the
zone.
(d) The plan shall ensure that whenever dwelling units within the
area of the plan housing persons and families of very low, low, or
moderate income are destroyed or removed from the very low, low-, or
moderate-income housing market, the city or county shall
rehabilitate, develop, or construct, or cause to be rehabilitated,
developed, or constructed, for rental or sale to persons and families
of very low, low, or moderate income, an equal number of replacement
dwelling units consistent with the requirements of subdivisions (a)
and (c) of Section 33413 of the Health and Safety Code.
64123. Within 30 days after the date of approval of a housing and
infrastructure zone by the bank pursuant to Section 64115, the city
or county shall initiate preparation of any document required by the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code) to adopt the housing and
infrastructure plan prepared pursuant to Section 64120.
64124. (a) A city or county shall prepare, adopt, and amend a
housing and infrastructure plan in the same manner as a general plan.
(b) Not more than 90 days after certifying the environmental
document completed under Section 64123, the city or county shall do
both of the following:
(1) Adopt the housing and infrastructure plan for the housing and
infrastructure zone.
(2) Amend its general plan, any specific plan, its zoning
ordinances, and any other applicable regulations to be consistent
with the housing and infrastructure plan.
(c) After the adoption or amendment of the housing and
infrastructure plan, the city or county shall send a copy of the plan
and the environmental document completed pursuant to Section 64123
to the bank and the council of governments or the secretary, as
applicable.
(d) The adopted or amended housing and infrastructure plan shall
be deemed to be substantially equivalent to the proposed housing and
infrastructure plan reviewed by the bank pursuant to Section 64115,
unless the bank finds to the contrary within 30 days after receiving
the adopted or amended housing and infrastructure plan. If the
adopted or amended housing and infrastructure plan is deemed
substantially equivalent to the proposed housing and infrastructure
plan reviewed by the bank under Section 64115, or if the bank takes
action determining that the plan is substantially equivalent, the
county auditor shall be directed to implement the provisions of
Section 64135 for the fiscal year immediately succeeding the fiscal
year in which the city or county approves the first tentative map or
other discretionary approval that approves residential development
within the zone.
(e) If the bank makes a finding that the adopted or amended plan
is not substantially equivalent to the draft housing and
infrastructure plan submitted to the bank pursuant to Section 64115,
then the applicant city or county shall have 90 days to amend the
housing and infrastructure plan. The amended plan shall be submitted
to the bank. If the bank finds, within 30 days after receiving the
amended plan , that the amended plan ,
is still not substantially equivalent to the proposed housing and
infrastructure plan, the zone shall be deemed disapproved.
CHAPTER 4. FINANCING OF HOUSING AND PUBLIC FACILITIES
64130. (a) The revenues available to the bank pursuant to Section
64135 may be used directly for any of the lawful purposes of the
housing and infrastructure zone, may be accumulated for a period not
to exceed five years to provide a fund for that work, or may be
pledged to pay the principal of, and interest on, bonds issued
pursuant to Section 64140.
(b) The city or county shall deposit into a separate account for
each housing and infrastructure zone not less than 20 percent of all
taxes that are allocated to the bank pursuant to Section 64135. The
funds in the account shall be used for the purposes of increasing,
improving, and preserving the community's supply of housing available
at affordable housing cost to, and occupied by, persons and families
of very low, low, or moderate income. Any interest earned by the
account and any repayments or other income to the bank or the
community for loans, advances, or grants of any kind from the account
shall accrue to and be deposited in the account. Funds in the
account may be used for any purpose described in subdivision (e) of
Section 33334.2 of the Health and Safety Code and shall be used in a
manner consistent with Sections 33334.3 and 33334.4 of the Health and
Safety Code, except that no more than 10 percent of the annual
deposit of taxes to the account may be used for planning and general
administrative activities.
64131. (a) Within a housing and infrastructure zone, the bank may
finance the purchase, construction, expansion, improvement, seismic
retrofit, or rehabilitation of any real or other tangible property
with an estimated useful life of 15 years or longer that satisfies
the requirements of subdivision (b), and may finance planning and
design work that is directly related to the purchase, construction,
expansion, or rehabilitation of that property.
(b) Within a housing and infrastructure zone, the bank may finance
housing and public facilities, including, but not limited to, all of
the following:
(1) Interchanges, ramps and bridges, arterial streets, parking
facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
pipes.
(3) Facilities for the collection and treatment of water for urban
uses.
(4) Child care facilities.
(5) Libraries.
(6) Parks, recreational facilities, and open space.
(7) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(8) Housing.
64135. A housing and infrastructure plan adopted pursuant to
Section 64124 may contain a provision that taxes, if any, levied upon
taxable property in the area included within the plan each year by
or for the benefit of school entities or the city or unincorporated
area of the county in which the housing and infrastructure zone is
located after the effective date of the resolution or ordinance
approving the plan in an amount not to exceed the amount specified in
the plan shall be divided as follows:
(a) (1) That portion of the taxes that would be produced by the
rate upon which the tax is levied each year by or for each of the
school entities and the local government upon the total sum of the
assessed value of the taxable property in the housing and
infrastructure zone as shown upon the assessment roll used in
connection with the taxation of that property by the school entities
and the local government, last equalized before the effective date of
the ordinance or resolution, shall be allocated to and when
collected shall be paid to the respective school entities and the
local government as taxes by or for the school entities and the local
government on all other property are paid.
(2) For the purpose of allocating taxes levied by or for any
school entity that did not include the territory in a zone on the
effective date of the ordinance or resolution, but to which that
territory has been annexed or otherwise included after that effective
date, the assessment roll of the county last equalized on the
effective date of the ordinance or resolution shall be used in
determining the assessed valuation of the taxable property in the
project on the effective date.
(b) That portion of the levied taxes each year in excess of the
amount identified in subdivision (a) , shall be
allocated to and when collected shall be paid into a special fund of
the bank to pay the principal of, and interest on, loans, moneys
advanced to, or indebtedness, whether funded, refunded, assumed, or
otherwise, incurred by the bank or other payments authorized by
Section 64130 to finance or refinance, in whole or in part, the plan
adopted pursuant to Section 64124. Unless and until the total
assessed valuation of the taxable property in a housing and
infrastructure zone exceeds the total assessed value of the taxable
property in that zone as shown by the last equalized assessment roll
referred to in subdivision (a), all of the taxes levied and collected
upon the taxable property in the zone shall be paid to the
respective school entities. When the loans, payments, advances, and
indebtedness, if any, and interest thereon, have been paid, all
moneys thereafter received from taxes upon the taxable property in
the zone shall be paid to the respective school entities as taxes on
all other property are paid.
(c) That portion of the taxes in excess of the amount identified
in subdivision (a) that is attributable to a tax rate levied by a
school entity for the purpose of producing revenues in an amount
sufficient to make annual repayments of the principal of, and the
interest on, any bonded indebtedness for the acquisition or
improvement of real property shall be allocated to, and when
collected shall be paid into, the fund of that school entity.
CHAPTER 5. BONDS
64140. The bank may issue bonds for the purposes of this division
pursuant to the procedures established under Chapter 5 (commencing
with Section 63070) of Division 1.
CHAPTER 6. REPORTS AND OVERSIGHT
64150. On or before December 31, 2011, and annually thereafter,
each city and county in which a housing and infrastructure zone
exists shall provide a report to the bank that includes all of the
following information for the preceding fiscal year:
(a) The amount of money that the county auditor allocated pursuant
to Section 64135.
(b) The purposes for which that money was used.
(c) The number of residential building permits issued by the city
or county within the zone.
(d) The value of all building permits issued by the city or county
within the zone.
64151. On or before March 1, 2012, and on or before March 31
annually thereafter, the bank shall provide a report to the Joint
Legislative Budget Committee and the relevant housing policy
committees of each house of the Legislature that includes all of the
following for the preceding
fiscal year:
(a) The information for each housing and infrastructure zone
reported to the bank pursuant to Section 64150.
(b) The total amount of money that county auditors allocated
pursuant to Section 64135.
(c) An evaluation of the extent to which the implementation of the
housing and infrastructure plans has achieved the purposes and
intent of this division. In preparing this evaluation, the bank may
solicit advice from and the assistance of other state agencies,
including, but not limited to, the departments within the Business,
Transportation and Housing Agency, the departments within the
Resources Agency, the Department of Finance, and the Governor's
Office of Planning and Research.
SEC. 3. (a) No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.
(b) However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division 4 of
Title 2 of the Government Code.