BILL NUMBER: AB 664	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 17, 2011
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 29, 2011
	AMENDED IN SENATE  JUNE 6, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  APRIL 13, 2011

INTRODUCED BY   Assembly Member Ammiano
   (Coauthors: Assembly Members Gordon, Hill, and Ma)
    (   Coauthor:   Senator   Leno
  ) 

                        FEBRUARY 17, 2011

   An act to amend Section 53395.8 of, and to add Sections 53395.81
and 53397.71 to, the Government Code, and to amend Sections 3 and 5
of Chapter 898 of the Statutes of 1997, relating to infrastructure
financing districts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 664, as amended, Ammiano. Infrastructure financing districts:
America's Cup and Treasure Island.
   Existing law authorizes the City and County of San Francisco to
create infrastructure financing districts, including districts that
include specified waterfront property, adopt infrastructure financing
plans for those districts, and issue bonds financed by projected
increases in ad valorem property taxes to fund certain public
facilities, pursuant to a specified procedure. Existing property tax
law establishes various procedures and requirements with respect to
the annual apportionment and allocation of ad valorem property tax
revenues, including increased revenues from these infrastructure
financing districts.
   This bill would authorize the adoption under these provisions of
financing plans for special waterfront districts that include the
waterfront area in the City and County of San Francisco designated as
the America's Cup venues and certain lands on Treasure Island, and
the use of specified tax revenues produced in the districts for the
construction of the Port of San Francisco's maritime facilities at
Pier 27, improvement of publicly held waterfront lands used as
viewing sites, affordable housing, and other matters, subject to
specified allocation procedures. It would require the county board of
supervisors to submit a fiscal analysis to the California
Infrastructure and Economic Development Bank for review and approval
before adopting the resolution authorizing the issuance of debt
pursuant to these provisions. The bill would exempt the issuance of
tax increment bonds in a waterfront district from local voter
approval requirements  and would authorize those bonds to be sold
at a negotiated sale  . The bill would enact other related
provisions.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City and County of San
Francisco.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Areas of San Francisco, including portions of the San
Francisco waterfront, are characterized by deteriorating conditions
that cannot be remedied by private investment alone, and require the
use of public financing mechanisms to finance the rectification of
deteriorating conditions.
   (b) In February 2010, the BMW ORACLE Racing Team (and its
successors, the "team"), sailing under the burgee of the Golden Gate
Yacht Club, won the 33rd America's Cup, off the coast of Valencia,
Spain. The America's Cup, which was first awarded in 1851, is the
oldest sporting trophy in sailing history. On December 31, 2010, the
team designated the City and County of San Francisco to host the 34th
America's Cup sailing regatta. The team has designated as the
potential venue for the 34th America's Cup the San Francisco
waterfront area generally between the Golden Gate Bridge to the north
and Pier 80 to the south. The team anticipates holding the 34th
America's Cup match in San Francisco Bay in 2013, with preliminary
races worldwide beginning in 2011 and in San Francisco Bay in 2012.
The City and County of San Francisco is conducting environmental
review of the 34th America's Cup match and preregattas.
   (c) An economic impact study by the Bay Area Council's Economic
Institute and Beacon Economics released in July 2010 concludes that
hosting the America's Cup on the San Francisco Bay would generate
nearly 9,000 jobs and $1.4 billion in direct spending in the San
Francisco Bay area and California, and nearly $1.9 billion
nationwide. The study reports that the America's Cup is the world's
third largest sporting competition after the Olympics and soccer's
World Cup.
   (d) The San Francisco waterfront is a valuable public trust asset
of the state that provides special maritime, navigational,
recreational, cultural, and historical benefits to the people of the
region and the state. Realizing the goals of the port waterfront land
use plan, the San Francisco Bay Conservation and Development
Commission special area plan, and the port capital plan is a matter
of statewide significance, and rectifying the deteriorating
conditions along the San Francisco waterfront caused by deferred
maintenance since 1969 by providing a financing mechanism, through
the use of incremental property tax revenues, is a matter of
statewide importance that will further the purposes of both the
public trust and the Burton Act trust. Public facilities along the
San Francisco waterfront to be financed pursuant to the
infrastructure financing district law will increase public access to,
and use or enjoyment of, public trust lands and are, therefore,
facilities of statewide and communitywide significance.
   (e) The City and County of San Francisco has agreed to provide the
team with venues for regattas, team and competitor facilities,
sponsorship activities, spectator viewing, and ancillary activities,
subject to completion of environmental review and review and approval
of the planned facilities for the event. The venues are likely to be
located on water areas, piers and wharves, and waterfront and
landside property under Port of San Francisco jurisdiction, generally
from the Golden Gate Bridge to Pier 80, and will include shared use
of the city's new cruise terminal facility to be built on Pier 27;
all of the venues, as determined from time to time, are collectively
referred to as the "America's Cup venues."
   (f) Portions of Naval Station Treasure Island, a former military
base located on Treasure Island and Yerba Buena Island in San
Francisco Bay, are potential America's Cup venues. Naval Station
Treasure Island was selected for closure and disposition by the Base
Closure and Realignment Commission in 1993, acting under Public Law
101-510 and its subsequent amendments, and was closed in 1997.
   (g) In order to mitigate the serious economic effects of the
closure of Naval Station Treasure Island on the City and County of
San Francisco, its surrounding communities, and the state, the
Legislature enacted the Treasure Island Conversion Act of 1997
(Chapter 898 of the Statutes of 1997), which grants in trust to the
Treasure Island Development Authority the state's sovereign interest
in former and existing tidelands within Naval Station Treasure
Island, and establishes the authority as the trust administrator for
those lands for the benefit of the people of the state in conformance
with the public trust for commerce, navigation, and fisheries.
   (h) The Navy and the authority have negotiated an agreement for
the transfer of the Navy-owned portion of the Treasure Island (TI)
property, as defined in paragraph (13) of subdivision (l) of Section
53395.81. Portions of the TI property will be subject to the public
trust upon their transfer from federal ownership.
   (i) The proposed reuse and development of the TI property includes
an innovative and comprehensive land use and transportation program
designed to discourage motor vehicle usage, reduce vehicle miles
traveled, encourage public transit, and serve as a model of
sustainable neighborhood development in furtherance of the California
Global Warming Solutions Act of 2006 (Division 25.2 (commencing with
Section 38500) of the Health and Safety Code). The proposed reuse
and development of the TI property will meet or exceed the
requirements of the California Green Building Standards Code.
   (j) The proposed reuse and development of the TI property will
provide significant benefits to the region and the state, including,
but not limited to, converting the TI property to productive reuse;
leveraging significant federal funding for the Navy's environmental
remediation of the TI property; providing public facilities that are
of benefit to the region and the state by increasing public access
to, and use and enjoyment of, public trust lands, such as
transportation facilities, public parks, open space, and recreational
facilities; increasing the region's supply of affordable housing;
and rehabilitating, restoring, and preserving historical structures
listed on the National Register of Historic Places.
   (k) The City of San Francisco intends to establish infrastructure
financing districts to finance public facilities along the San
Francisco waterfront through its port and the authority or another
related entity, including one or more districts covering any approved
America's Cup venues. Due to the extraordinary capital needs of the
port, and in order to mitigate the serious economic effects of the
closure of Naval Station Treasure Island on the City and County of
San Francisco, the region, and the state, it is the intent of the
Legislature in enacting this act to provide the City of San
Francisco, its port, and the authority the widest latitude, within
the framework of the infrastructure financing district law, to create
and operate infrastructure financing districts to construct needed
public facilities on waterfront lands in order to meet the stated
goals of statewide and communitywide significance.
   (l) The plan for the development of the TI property, including the
use of one or more waterfront districts under this act, will be
fiscally sustainable, will create significant numbers of new
construction and permanent jobs, will address the problems of
greenhouse gas emissions and transportation, and will promote infill
development. Development of the TI property presents a particularly
advantageous opportunity to benefit the City and County of San
Francisco, the region, and the state due to special and unique
circumstances, including, without limitation, the benefits described
above, the extraordinary location of the TI property, and the ability
to leverage significant federal and other external funding. In
addition, this act would provide a method for increasing, improving,
and preserving low- and moderate-income housing on the TI property.
   (m) The TI property is substantially undeveloped and, in a
waterfront district containing the TI property, all improvements
authorized by this act would have communitywide significance.
  SEC. 2.  Section 53395.8 of the Government Code is amended to read:

   53395.8.  (a) This section applies only to the City and County of
San Francisco, and to any waterfront district.
   (b) In addition to the findings and declarations in Section 53395,
the Legislature further finds and declares that providing the
ability to capture property tax increment revenues to finance needed
public facilities in waterfront lands in San Francisco that are
subject to the public trust to the public agencies with the
responsibility to administer those areas will further the objectives
of the public trust and enjoyment of those trust lands by the people
of the state.
   (c) For purposes of this section, the following terms have the
following meanings except as otherwise provided:
   (1) "Affected taxing entity" means any governmental taxing agency,
except San Francisco and its local educational agencies, that levied
or had levied on its behalf a property tax on all or a portion of
the land located in the proposed district in the fiscal year prior to
the designation of the district, all or a portion of which the
district proposes to collect in the future under its infrastructure
financing plan.
   (2) "Base year" means the fiscal year during which any
infrastructure financing plan adopted under this chapter becomes
effective.
   (3) "Board" means the Board of Supervisors of the City and County
of San Francisco, which shall be the legislative body for any
district formed under this section.
   (4) "Burton Act" means Chapter  133   1333
 of the Statutes of 1968, as amended.
   (5) "Burton Act trust" means the statutory trust imposed by the
Burton Act.
   (6) "Debt" means loans, advances, or other forms of indebtedness
and financial obligations, including, but not limited to, commercial
paper, variable rate demand notes, all moneys payable in relation to
the debt, and all debt service coverage requirements in any debt
instrument, in addition to the obligations specified in the
definition of "debt" in Section 53395.1.
   (7) "District" means any district created under this chapter,
including any project area within a district.
   (8) "ERAF" means the Educational Revenue Augmentation Fund.
   (9) "ERAF-secured debt" means debt incurred to finance a Pier 70
district subject to a Pier 70 enhanced financing plan that is secured
by and will be repaid from the ERAF share.
   (10) "ERAF share" means the county ERAF portion of incremental tax
revenue committed to a Pier 70 district under a Pier 70 enhanced
financing plan.
   (11) "Local educational agencies" means, collectively, the San
Francisco Unified School District, the San Francisco Community
College District, and the San Francisco County Office of Education.
   (12) "Mirant site" means the San Francisco waterfront land owned
by Mirant Corporation, on which it or its affiliate formerly operated
a coal gasification powerplant.
   (13) "Pier 70 district" means a waterfront district that includes
65 acres of waterfront land in the area near Pier 70.
   (14) "Pier 70 enhanced financing plan" means an infrastructure
district financing plan for a Pier 70 district that contains a
provision authorized under subparagraph (D) of paragraph (3) of
subdivision (g).
   (15) "Port" means the Port of San Francisco.
   (16) "Project area" means a defined area designated for
development within a waterfront district formed under this chapter in
accordance with subdivision (g).
   (17) "Public facilities" means facilities and, where the context
requires, related services, authorized to be financed in any part by
a district formed under this chapter in accordance with subdivision
(g).
   (18) "San Francisco" means the City and County of San Francisco.
For purposes of applying this chapter, San Francisco is a city.
   (19) "Waterfront district" means a district formed under this
chapter on land under port jurisdiction along the San Francisco
waterfront and any special waterfront district as defined in Section
53395.81.
   (20) "Waterfront set aside" means the restricted funds required to
be set aside under clause (ii) of subparagraph (C) of paragraph (3)
of subdivision (g).
   (d) In addition to the facilities and services authorized by
Section 53395.3, a waterfront district may finance any of the
following:
   (1) Remediation of hazardous materials in, on, under, or around
any real or tangible property.
   (2) Seismic and life-safety improvements to existing buildings.
   (3) Rehabilitation, restoration, and preservation of structures,
buildings, or other facilities having special historical,
architectural, or aesthetic interest or value and that are listed on
the National Register of Historic Places, are eligible for listing on
the National Register of Historic Places individually or because of
their location within an eligible registered historic district, or
are listed on a state or local register of historic landmarks.
   (4) Structural repairs and improvements to piers, seawalls, and
wharves.
   (5) Removal of bay fill.
   (6) Stormwater management facilities, other utility
infrastructure, or public open-space improvements.
   (7) Shoreline restoration.
   (8) Other repairs and improvements to maritime facilities.
   (9) Planning and design work that is directly related to any
public facilities authorized to be financed by a waterfront district.

   (10) Reimbursement payments made to the California Infrastructure
and Economic Development Bank in accordance with paragraph (5) of
subdivision (f) of Section 53395.81, and paragraph (5) of subdivision
(g) of Section 53395.81. 
   (e) A waterfront district may include, and finance public
facilities on, tidelands and submerged lands, including filled or
unfilled lands, subject to the public trust for commerce, navigation,
and fisheries, and the applicable statutory trust grant or grants.
Public facilities located on tidelands and submerged lands shall
serve and promote uses and purposes consistent with the public trust
and applicable statutory trust grants. Public facilities that
increase access to, or the use or enjoyment of, public trust lands
will be deemed to be facilities of communitywide significance that
provide significant benefits to an area larger than the area of the
district.
   (f) Public facilities financed by a waterfront district shall be
public trust assets subject to the administration and control of the
district, except for the following:
   (1) Utility infrastructure and public transportation facilities,
except maritime transportation facilities that are administered and
controlled by another entity under an agreement with the port.
   (2) Public facilities on land located in a previously formed
waterfront district that the port subsequently leases, sells, or
otherwise transfers to any person free of the public trust, the
Burton Act trust, and any additional restrictions on use or
alienability created by the Burton Act transfer agreement, provided
that the State Lands Commission has concurred in the lifting of trust
restrictions on the transferred land and that the transferred land
will remain in and subject to the district.
   (3) Any improvement or facility financed by a TI district as
defined in Section 53395.81.
   (g) For a waterfront district, the requirements of this
subdivision supplant and replace the provisions of Sections 53395.10
to 53395.25, inclusive. The board may adopt or amend one or more
infrastructure financing plans for districts along the San Francisco
waterfront according to the procedures in this section. Except as
provided otherwise in this subdivision or in Section 53395.81, the
provisions of subdivisions (a) and (b) of Section 53395.4 shall not
apply to a waterfront district. A waterfront district may be formed
and become effective at any time. A district may be divided into
project areas, each of which may be subject to distinct time
limitations established under this subdivision.
   (1) The board shall initiate proceedings for the establishment of
a district by adopting a resolution of intention to establish the
proposed district that does all of the following:
   (A) States an infrastructure financing district is proposed to be
established and describes the boundaries of the proposed district.
The boundaries may be described by reference to a map on file in the
office of the clerk of the board.
   (B) States the type of public facilities proposed to be financed
by the district.
   (C) States that incremental property tax revenue from San
Francisco and some or all affected taxing entities within the
district, but none of the local educational agencies, may be used to
finance these public facilities.
   (D) Directs the executive director of the port, or an appropriate
official designated by the executive director, to prepare a proposed
infrastructure financing plan.
   (2) The board shall direct the city clerk to mail a copy of the
resolution of intention to any affected taxing entities.
   (3) The proposed infrastructure financing plan shall be consistent
with the general plan of San Francisco, as amended from time to
time, and shall include all of the following:
   (A) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the board
in its resolution of intention.
   (B) A description of the public improvements and facilities
required to serve the development proposed in the district, including
those to be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public facilities to be financed with assistance from the proposed
district, and those to be provided jointly. The description shall
include the proposed location, timing, and projected costs of the
public improvements and facilities.
   (C) A financing section that shall contain all of the following:
   (i) A provision that specifies the maximum portion of the
incremental tax revenue of San Francisco and of any affected taxing
entity proposed to be committed to the district, and affirms that the
plan will not allocate any portion of the incremental tax revenue of
the local educational agencies to the district.
   (ii) Limitations on the use of levied taxes allocated to and
collected by the district that provide that incremental tax revenues
allocated to a district must be used within the district for purposes
authorized under this section, and that not less than 20 percent of
the amount allocated to a district shall be set aside to be expended
solely on shoreline restoration, removal of bay fill, or waterfront
public access to or environmental remediation of the San Francisco
waterfront.
   (iii) A projection of the amount of incremental tax revenues
expected to be received by the district, assuming a period of 45
years beginning on the date on which San Francisco projects that the
district will have received one hundred thousand dollars ($100,000)
in incremental tax revenues under this chapter.
   (iv) Projected sources of financing for the public facilities to
be assisted by the district, including debt to be repaid with
incremental tax revenues, projected revenues from future leases,
sales, or other transfers of any interest in land within the
district, and any other legally available sources of funds.
   (v) A limitation on the number of dollars of levied taxes that may
be divided and allocated to the district. Taxes shall not be divided
or be allocated to the district beyond this limitation, except by
amendment of the infrastructure financing plan pursuant to the
procedures in this subdivision.
   (vi) A date on which the effectiveness of the infrastructure
financing plan and all tax allocations to the district will end and a
time limit on the district's authority to repay indebtedness with
incremental tax revenues received under this chapter, not to exceed
45 years from the date the district has actually received one hundred
thousand dollars ($100,000) in incremental tax revenues under this
chapter. After the time limits established under this subparagraph, a
district shall not receive incremental tax revenues under this
chapter.
   (vii) An analysis of the costs to San Francisco for providing
facilities and services to the district while the district is being
developed and after the district is developed, and of the taxes,
fees, charges, and other revenues expected to be received by San
Francisco as a result of expected development in the district.
   (viii) An analysis of the projected fiscal impact of the district
and the associated development upon any affected taxing entity. If no
affected taxing entities exist within the district because the plan
does not provide for collection by the district of any portion of
property tax revenues allocated to any taxing entity other than San
Francisco, the district has no obligation to any other taxing entity
under this subdivision.
   (ix) A statement that the district will maintain accounting
procedures in accordance, and otherwise comply, with Section 6306 of
the Public Resources Code for the term of the plan.
   (D) For a Pier 70 district only, the Pier 70 enhanced financing
plan may contain a provision meeting the requirements of Section
53396 that allocates a portion of the incremental tax revenue of San
Francisco and of other designated affected taxing entities to the
Pier 70 district.
   The portion of incremental tax revenue of San Francisco to be
allocated to the Pier 70 district must be equal to the portion of the
incremental tax revenue of the county ERAF proposed to be committed
to the Pier 70 district. In addition to all other requirements under
this section, a Pier 70 district shall also be subject to the
following additional limitations:
   (i) A Pier 70 district subject to a Pier 70 enhanced financing
plan shall not be formed and become effective  for at least
three full fiscal years following the effective date of this section.
  prior to   January 1, 2014. 
   (ii) Any Pier 70 enhanced financing plan shall contain all of the
following:
   (I) A time limit on new ERAF-secured debt to finance the district,
which may not exceed 20 fiscal years from the fiscal year in which
any Pier 70 district subject to a Pier 70 enhanced financing plan
first issues debt. The ERAF-secured debt may be repaid over the
period of time ending on the time limit established under clause (vi)
of subparagraph (C). This time limit on new ERAF-secured debt shall
not prevent a Pier 70 district from subsequently refinancing,
refunding, or restructuring ERAF-secured debt if the debt is not
increased and the time during which the debt is to be repaid is not
extended beyond the time limit established under clause (vi) of
subparagraph (C).
   (II) A statement that the Pier 70 district shall be subject to a
limitation on the number of dollars of the ERAF share that may be
divided and allocated to the Pier 70 district pursuant to the Pier 70
enhanced financing plan, including any amendments to the plan, which
shall be established in consultation with the county auditor. This
limitation and a schedule specifying the amount of the ERAF share
that must be divided and allocated to the district in each succeeding
fiscal year until all ERAF-secured debt has been paid shall be
included in the statement of indebtedness that the Pier 70 district
files for the 19th fiscal year after the fiscal year in which any
ERAF-secured debt is first issued. The ERAF share shall not be
divided and shall not be allocated to the Pier 70 district beyond
that limitation.
   (III) The limitations established by subclauses (I) and (II) may
be amended only by amendment of this section. When the ERAF-secured
debt, if any, has been paid, all moneys thereafter allocated to the
ERAF share shall be paid into ERAF as taxes on all other property are
paid. In addition, beginning in the 21st fiscal year after the
fiscal year in which ERAF-secured debt is first issued, any portion
of the ERAF share in excess of the amount required to meet the Pier
70 district's ERAF-secured debt service obligations shall be paid
into ERAF.
   (4) The proposed infrastructure financing plan shall be mailed to
each affected taxing entity for review, together with any report
required by the California Environmental Quality Act (Division 13
(commencing with Section 21000) of the Public Resources Code) that
pertains to the proposed public facilities and any proposed
development project for which the public facilities are needed, and
shall be made available for public inspection. The report also shall
be sent to the San Francisco Planning Department and the board.
   (5) Except as provided in subdivision (i), the board shall not
enact a resolution proposing formation of a district and providing
for the division of taxes of any affected taxing entities for use in
the Pier 70 district as set forth in the proposed infrastructure
financing plan unless a resolution approving the plan has been
adopted by the governing body of each affected taxing entity that is
proposed to be subject to division of taxes as set forth in the
proposed infrastructure financing plan, and that resolution has been
filed with the board at or prior to the time of the hearing. A
resolution approving the plan adopted by the governing body of an
affected taxing entity shall be deemed the affected taxing entity's
agreement to participate in the plan for the purposes of Section
53395.19.
   (6) If the governing body of an affected taxing entity has not
approved the infrastructure financing plan before the board considers
the plan, the board may amend the infrastructure financing plan to
remove the allocation of the tax revenues of the nonconsenting
affected taxing entity. If a plan is so amended, the plan also shall
be amended to provide that San Francisco will allocate to the Pier 70
district funds equal on a dollar-for-dollar basis to the tax
revenues that the Pier 70 district would have received from the
allocation of tax revenues of the affected taxing entity that is
removed from the plan.
   (7) The board shall hold a public hearing regarding the
infrastructure financing plan that shall be scheduled on a date no
earlier than 60 days after the plan has been sent to each affected
taxing entity, or in the absence of any affected taxing entities, no
earlier than 30 days after the plan has been lodged with the clerk of
the board. Notice of the public hearing must be published not less
than once a week for four successive weeks in a newspaper designated
by the board for the publication of official notices in San
Francisco, or if the board no longer designates a newspaper for the
publication of official notices, a newspaper of
                      general circulation serving primarily San
Francisco residents. The notice shall state that the district will be
established to finance public facilities, briefly describe the
public facilities and the proposed financial arrangements, including
the proposed commitment of incremental tax revenue, describe the
boundaries of the proposed district, and state the day, hour, and
place when and where any persons having any objections to the
proposed infrastructure financing plan, or the regularity of any of
the previous proceedings, may appear before the board and object to
the adoption of the proposed infrastructure financing plan by the
board.
   (8) At the hour set in the required notices, the board shall
proceed to hear and pass upon all written and oral objections. The
hearing may be continued from time to time. The board shall consider
any recommendations of affected taxing entities, and all evidence and
testimony for and against the adoption of the infrastructure
financing plan.
   (9) No election will be required to form the district, and at the
conclusion of the hearing, the board may adopt an ordinance adopting
the infrastructure financing plan, as drafted or as modified by the
board, or it may abandon the proceedings.
   (10) Any public or private owner of land that is not within an
existing district, but that has any boundary line contiguous to a
boundary of the waterfront district, may petition the board for
inclusion of the land in the waterfront district without an election.
As a condition to inclusion of its land in the waterfront district,
the petitioning landowner shall acknowledge and agree that any
portion of the land within 100 feet of the San Francisco Bay
Conservation and Development Commission shoreline (shoreline band)
will include contiguous public access along the length of the
shoreline band, improved and maintained to standards equal to
adjacent waterfront public access ways on public land, as certified
by the San Francisco Bay Conservation and Development Commission.
Nothing in this section is intended to affect or limit the authority
of the San Francisco Bay Conservation and Development Commission
pursuant to Chapter 1 (commencing with Section 66600) of Title 7.2,
or any other law. This procedure will apply to any petition to
include the Mirant site in the Pier 70 district, but the board may
amend the Pier 70 financing plan to include the Mirant site in the
Pier 70 district only after the Director of Finance's approval.
   (11) The ordinance creating a district and adopting or amending an
infrastructure financing plan shall establish the base year for the
district. The board may amend an infrastructure financing plan by
ordinance to divide an established district into one or more project
areas, to reduce the district area, or, to expand a waterfront
district to include the petitioning landowner's land in the district
in accordance with the board's established procedures. Any ordinance
adopting or amending an infrastructure financing plan will be deemed
an ordinance adopted for the purposes of Section 53395.23.
   (12) With respect to a waterfront district, San Francisco may
enter into an agreement for the construction of discrete portions or
phases of facilities. The agreement may include any provisions that
San Francisco determines are necessary or convenient, but shall do
all of the following:
   (A) Identify the specific facilities or discrete portions or
phases of facilities to be constructed and purchased. San Francisco
may agree to purchase discrete portions or phases of facilities if
the portions or phases are capable of serviceable use as determined
by San Francisco.
   (B) Notwithstanding subparagraph (A), when the purchase value of a
facility exceeds one million dollars ($1,000,000), San Francisco may
agree to purchase discrete portions or phases of the partially
completed facility.
   (C) Identify procedures to ensure that the facilities are
constructed pursuant to plans, standards, specifications, and other
requirements as determined by San Francisco.
   (D) Specify a price or a method to determine a price for each
facility or discrete portion or phase of a facility. The price may
include an amount reflecting the interim cost of financing cash
payments that must be made during construction of the project, at the
discretion of San Francisco.
   (E) Specify procedures for final inspection and approval of
facilities or discrete portions or phases of facilities, for approval
of payment and for acceptance and conveyance.
   (h) (1) All the amounts calculated under this subdivision shall be
calculated after deducting the waterfront set-aside required under
clause (ii) of subparagraph (C) of paragraph (3) of subdivision (g),
or paragraph (3) or (4) of subdivision (e) of Section 53395.81, as
applicable, from the total amount of tax increment funds allocated to
a district in the applicable fiscal year. The payments made under
this subdivision to the affected taxing entities shall be allocated
among the affected taxing entities in proportion to the percentage
share of property taxes each affected taxing entity receives during
the fiscal year the funds are allocated. The percentage share shall
be determined without regard to any amounts allocated to a city,
county, or city and county under Sections 97.68 and 97.70 of the
Revenue and Taxation Code.
   (2) (A) Prior to incurring any debt, except loans or advances from
San Francisco, a district may subordinate to the debt the amount
required to be paid to an affected taxing entity under this
subdivision, if any, provided the affected taxing entity has approved
these subordinations as provided in this paragraph.
   (B) At the time the district requests an affected taxing entity to
subordinate the amount to be paid to it, the district shall provide
the affected taxing entity with substantial evidence that sufficient
funds will be available to pay when due both the debt service on the
debt and the payments to the affected taxing entity required under
this subdivision.
   (C) Within 45 days after receipt of the district's request, the
affected taxing entity shall approve or disapprove the request for
subordination. An affected taxing entity may disapprove a request for
subordination only if it finds, based upon substantial evidence,
that the district will not be able to pay when due the debt payments
and the amount required to be paid to the affected taxing entity. If
the affected taxing entity does not act within 45 days after receipt
of the district's request, the request to subordinate shall be deemed
approved and its deemed approval shall be final and conclusive.
   (D) For the purpose of this paragraph only, "affected taxing
entity" shall mean any governmental agency that levied, or had levied
on its behalf, a property tax on all or a portion of the land
located in the proposed district in the fiscal year prior to the
designation of the special waterfront district.
   (3) The Legislature finds and declares all of the following:
   (A) The payments to be made under this subdivision are necessary
in order to alleviate the financial burden and detriment that
affected taxing entities may incur as a result of the adoption of an
infrastructure financing plan, and payments made under this
subdivision will benefit the district.
   (B) The payments to be made under this subdivision are the
exclusive payments that are required to be made by a district to
affected taxing entities during the term of an infrastructure
financing plan.
   (4) Nothing in this section requires a district, either directly
or indirectly, as a measure to mitigate a significant environmental
effect or as part of any settlement agreement or judgment brought in
any action to contest the validity of a district under Section
53395.6, to make any other payments to affected taxing entities, or
to pay for public facilities that will be owned or leased to an
affected taxing entity.
   (i) The portion of taxes required to be allocated to the Pier 70
district under a duly adopted infrastructure financing plan shall be
allocated and paid to the district by the county auditor or officer
responsible for the payment of taxes into the funds of the respective
taxing entities under the procedure contained in this subdivision.
If the approved plan allocates to the Pier 70 district 100 percent of
the incremental tax revenue of San Francisco that is available under
applicable law to be allocated to the Pier 70 district, then the
district shall not make a payment to ERAF, but if the plan allocates
less than 100 percent of the incremental tax revenue of San Francisco
that is available under applicable law to be allocated to the Pier
70 district, then the district shall pay a proportionate share of
incremental tax revenue into ERAF.
   (1) No later than October 1 of each year, for each district for
which the infrastructure financing plan provides for the division of
taxes, the district shall file with the county auditor or officer a
statement of indebtedness and a reconciliation statement for the
previous fiscal year certified by the chief financial officer of the
district.
   (2) Each statement of indebtedness shall contain all of the
following:
   (A) For each debt the district has incurred or entered into, all
of the following:
   (i) The date the district incurred or entered into the debt.
   (ii) The principal amount, term, purpose, interest rate, and total
interest payable over the term of the debt.
   (iii) The principal amount and interest due in the fiscal year in
which the statement is filed.
   (iv) The total amount of principal and interest remaining to be
paid over the term of the debt.
   (B) The sum of the principal and interest due on all debts in the
fiscal year in which the statement is filed.
   (C) The sum of principal and interest remaining to be paid on all
debts.
   (D) The available revenues as of the end of the previous fiscal
year.
   (3) The district may estimate the amount of principal or interest,
the interest rate, or term of any debt if the nature of the debt is
such that the amount of principal or interest, the interest rate, or
term cannot be precisely determined. The district may list on a
statement of indebtedness any debt incurred or entered into on or
before the date the statement is filed.
   (4) Each reconciliation statement shall include all of the
following:
   (A) A list of all debts listed on the previous year's statement of
indebtedness, if any.
   (B) A list of all debts not listed on the previous year's
statement of indebtedness, but incurred or entered into in the
previous year and paid in whole or in part from incremental tax
revenue received by the district. This listing may aggregate into a
single item debts incurred or entered into in the previous year for a
particular purpose, such as relocation expenses, administrative
expenses, consultant expenses, or remediation of hazardous materials.

   (C) For each debt described in subparagraph (A) or (B), all of the
following shall be included:
   (i) The total amount of principal and interest remaining to be
paid as of the later of the beginning of the previous year or the
date the debt was incurred or entered into.
   (ii) Any increases or additions to the debt occurring during the
previous year.
   (iii) The amount paid on the debt in the previous year from
incremental tax revenue received by the district.
   (iv) The amount paid on the debt in the previous year from revenue
other than incremental tax revenue received by the district.
   (v) The total amount of principal and interest remaining to be
paid as of the end of the previous fiscal year.
   (D) The available revenues of the district as of the beginning of
the previous fiscal year.
   (E) The amount of incremental tax revenue received by the district
in the previous fiscal year.
   (F) The amount of available revenue received by the district in
the previous fiscal year other than incremental tax revenue.
   (G) The sum of the amounts paid on all debts from sources other
than incremental tax revenue, to the extent that the amounts are not
included as available revenues under subparagraph (F).
   (H) The sum of the amounts specified in subparagraphs (D) to (G),
inclusive.
   (I) The sum of the amounts specified in clauses (iii) and (iv) of
subparagraph (C) of paragraph (4).
   (J) The amount determined by subtracting the amount determined
under subparagraph (I) from the amount determined under subparagraph
(H). The amount determined under this paragraph shall be the
available revenues as of the end of the previous fiscal year to be
reported in the statement of indebtedness.
   (5) For the purposes of this paragraph, available revenues shall
include all cash or cash equivalents held by the district that were
received by the district under subparagraph (D) of paragraph (3) of
subdivision (g) and all cash or cash equivalents held by the district
that are irrevocably pledged or restricted to payment of a debt that
the district has listed on a statement of indebtedness. In no event
shall available revenues include funds allocated to the waterfront
set aside.
   (6) For the purposes of this subdivision: (A) the amount a
district is required to deposit into the waterfront set aside shall
constitute an indebtedness of the district, (B) no debt that a
district intends to pay from the waterfront set aside shall be listed
on a statement of indebtedness or reconciliation statement as a debt
of the district, and (C) any statutorily authorized deficit in or
borrowing from funds in the waterfront set aside shall constitute an
indebtedness of the district.
   (7) The county auditor or officer shall allocate and pay, at the
same time or times as the payment of taxes into the funds of the
respective taxing agencies of the county, the portion of incremental
tax revenues allocated to each district under the infrastructure
financing plan. The amount allocated and paid shall not exceed the
amount of the district's remaining debt obligations, as determined
under subparagraph (C) of paragraph (2), minus the amount of
available revenues as of the end of the previous fiscal year, as
determined under subparagraph (D) of paragraph (2).
   (8) The statement of indebtedness constitutes prima facie evidence
of the debts of the district.
   (A) If the county auditor or other officer disputes the amount of
the district's debts as shown on the statement of indebtedness, the
county auditor or other officer, within 30 days after receipt of the
statement, shall give written notice to the district thereof.
   (B) The district, within 30 days after receipt of notice under
subparagraph (A), shall submit any further information it deems
appropriate to substantiate the amount of any debt that has been
disputed. If the county auditor or other officer still disputes the
amount of debt, final written notice of that dispute shall be given
to the district, and the amount disputed may be withheld from
allocation and payment to the district as otherwise required by
paragraph (7). In that event, the auditor or other officer shall
bring an action in the superior court for declaratory relief to
determine the matter no later than 90 days after the date of the
final notice.
   (C) In any court action brought under this paragraph, the issue
shall involve only the amount of debt, and not the validity of any
contract or debt instrument or any expenditures pursuant thereto.
Payments to a trustee under a bond resolution or indenture of any
kind or payments to a public agency in connection with payments by
that public agency under a lease or bond issue shall not be disputed
in any action under this paragraph. The matter shall be set for trial
at the earliest possible date and shall take precedence over all
other cases except older matters of the same character. Unless an
action is brought within the time provided for herein, the auditor or
other officer shall allocate and pay the amount shown on the
statement of indebtedness as provided in paragraph (7).
   (D) Nothing in this subdivision shall be construed to permit a
challenge to or attack on matters precluded from challenge or attack
by reason of Sections 53395.6 and 53395.7. However, nothing in this
subdivision shall be construed to deny a remedy against the district
otherwise provided by law.
   (E) The Controller shall prescribe uniform forms consistent with
this subdivision for a district's statement of indebtedness and
reconciliation statement. In preparing these forms, the Controller
shall obtain the input of the San Francisco City Controller, the San
Francisco Tax Collector, and the district.
   (F) For the purposes of this subdivision, a fiscal year shall be a
year that begins on July 1 and ends the following June 30.
   (j) (1) Prior to the adoption by the board of an infrastructure
financing plan providing for tax increment financing under
subparagraph (D) of paragraph (3) of subdivision (g), any affected
taxing entity may elect to be allocated, and every local educational
agency shall be allocated, all or any portion of the tax revenues
allocated to the district under subparagraph (D) of paragraph (3) of
subdivision (g) attributable to increases in the rate of tax imposed
for the benefit of the taxing entity which levy occurs after the tax
year in which the ordinance adopting the infrastructure financing
plan becomes effective.
   (2) The governing body of any affected taxing entity electing to
receive allocation of taxes under this subdivision shall adopt a
resolution to that effect and transmit the same, prior to the
adoption of the infrastructure financing plan, to (A) the board, (B)
the district, and (C) the official or officials performing the
functions of levying and collecting taxes for the affected taxing
entity. Upon receipt by the official or officials of the resolution,
allocation of taxes under this section to the affected taxing entity
shall be made at the time or times allocations are made under
subdivision (a) of Section 33670 of the Health and Safety Code.
   (3) An affected taxing entity, at any time after the adoption of
the resolution, may elect not to receive all or any portion of the
additional allocation of taxes under this section by rescinding the
resolution or by amending the same, as the case may be, and giving
notice thereof to the board, the district, and the official or
officials performing the functions of levying and collecting taxes
for the affected taxing entity. After receipt of a notice by the
official or officials that an affected taxing entity has elected not
to receive all or a portion of the additional allocation of taxes by
rescission or amendment of the resolution, any allocation of taxes to
the affected taxing entity required to be made under this section
shall not thereafter be made but shall be allocated to the district.
After receipt of a notice by the official or officials that an
affected taxing entity has elected to receive additional tax revenues
attributable to only a portion of the increases in the rate of tax,
only that portion of the tax revenues shall thereafter be allocated
to the affected taxing entity, and the remaining portion thereof
shall be allocated to the district.
   (k) This section implements and fulfills the intent of Article 2
(commencing with Section 53395.10) and of Article XIII B and is
consistent with the conclusion of California courts that tax
increment revenues are not "proceeds of taxes" for purposes of the
latter. The allocation and payment to a district of the portion of
taxes specified in this section for the purpose of paying principal
of, or interest on, loans, advances, or indebtedness incurred for
facilities or the cost of acquisition and construction of facilities
under this section shall not be deemed the receipt by a district of
proceeds of taxes levied by or on behalf of the district within the
meaning or for the purposes of Article XIII B of the California
Constitution, nor shall this portion of taxes be deemed receipt of
proceeds of taxes by, or an appropriation subject to limitation of,
any other public body within the meaning or for purposes of Article
XIII B of the California Constitution or any statutory provision
enacted in implementation of Article XIII B. The allocation and
payment to a district of this portion of taxes shall not be deemed
the appropriation by a district of proceeds of taxes levied by or on
behalf of a district within the meaning or for purposes of Article
XIII B of the California Constitution.
  SEC. 3.  Section 53395.81 is added to the Government Code, to read:

   53395.81.  (a) This section shall apply only to a special
waterfront  district  .
   (b) A special waterfront district may be created as a waterfront
district pursuant to, and shall be subject to, all applicable
requirements of Sections 53395.3 and 53395.8, except as provided in
this section.
   (c) The TI property is substantially undeveloped and, in a TI
district, all improvements authorized by this chapter would have
communitywide significance. The provisions of subdivision (c) of
Section 53395.3 shall not apply to a TI district. A TI district may
finance (1) the costs authorized by Sections 53395.3 and 53395.8, (2)
the costs required to increase, improve, and preserve the supply of
affordable housing on TI property, including the costs described in
Section 53395.5, provided financed dwelling units may be located
anywhere on TI property, and (3) the costs of work deemed necessary
by the City and County of San Francisco to bring the TI property,
whether that TI property is publicly or privately owned, into
compliance with seismic safety standards or regulations. A TI
district may not finance services or use the harbor fund to finance
any costs of a TI district or to provide credit enhancement for debt
issued by a TI district. No portion of a TI district may be included
in a redevelopment project area later formed under Section 33000 of
the Health and Safety Code, or any successor laws.
   (d) The Board of Supervisors of the City and County of San
Francisco may, by resolution, vest in the authority the power under
this chapter to form one or more TI districts. The City and County of
San Francisco and the authority may take any actions relating to TI
property that would otherwise be vested in the Port of San Francisco
under this chapter.
   (e) (1) The special waterfront district ERAF share produced in a
special waterfront district with a special waterfront district
enhanced financing plan shall be used only to finance the following:
   (A) With respect to a Port America's Cup district:
   (i) Construction of the port's maritime facilities at Pier 27.
   (ii) Planning and design work that is directly related to the port'
s maritime facilities at Pier 27.
   (iii) Planning, design, and construction of improvements to
publicly owned waterfront lands held by trustee agencies, such as the
National Park Service and the California State Parks, and used as
public spectator viewing sites for America's Cup-related events 
, including the San Francisco Bay Trail along the Marina Green 
. 
   (iv) Future installations of shoreside power facilities on port
maritime facilities. 
   (B) With respect to a TI district, any purpose authorized by
subdivision (c).
   (2) A special waterfront district enhanced financing plan for a
Port America's Cup district shall provide that the proceeds of
special waterfront district ERAF-secured debt are restricted for use
to finance directly, reimburse the port for its costs related to, or
refinance other debt incurred in, the construction of the port's
maritime facilities at Pier 27, including public access and public
open-space improvements. A special waterfront district enhanced
financing plan for a TI district shall provide that the proceeds of
the special waterfront district ERAF share and special waterfront
district ERAF-secured debt are restricted to finance authorized
improvements required for the development of TI property.
   (3) Twenty percent in the aggregate of the special waterfront
district ERAF share allocated to a Port America's Cup district under
this section shall be set aside to finance costs of improvements to
federally- or state-owned waterfront lands approved by trustee
agencies such as the National Park Service or the California State
Parks as provided in clause (iii) of subparagraph (A) of paragraph
(1). The foregoing 20 percent set aside shall not apply to the
special waterfront district ERAF share allocated to a TI district.
   (4) A special waterfront district enhanced financing plan for a TI
district shall comply with both of the following:
   (A) San Francisco shall use at least 20 percent of the incremental
tax revenue allocated to the TI district for the purposes of
increasing, improving, and preserving the supply of affordable
housing on TI property. That incremental tax revenue may be used to
finance the costs described in Section 53395.5, provided financed
dwelling units may be located anywhere on TI property.
   (B) (i) San Francisco shall require that affordable housing
described in subparagraph (A) remain affordable housing for the
useful life of the dwellings, which may not be less than 55 years for
rental units and 45 years for owner-occupied units.
   (ii) Notwithstanding clause (i), the authority may permit sales of
owner-occupied units prior to the expiration of the 45-year period
for a price in excess of the affordable housing price as determined
pursuant to Section 50052.5 of the Health and Safety Code under a
program adopted by the authority that protects the authority's
investment of funds in the unit, including, but not limited to, a
program that establishes a schedule of equity sharing that permits
retention by the seller of a portion of those excess sales proceeds.
The remainder of the excess sales proceeds shall be used solely for
affordable housing.
   (iii) The City of San Francisco shall establish and record
covenants or restrictions implementing these requirements.
   (5) The 20 percent set-aside requirements applicable to a special
waterfront district set forth in paragraphs (3) and (4), as
applicable, are in lieu of the set-aside requirement set forth in
clause (ii) of subparagraph (C) of paragraph (3) of subdivision (g)
of Section 53395.8.
   (f) (1) Before adopting the resolution authorizing the first debt
issuance by a Port America's Cup district with a special waterfront
district enhanced financing plan authorized by this section, the
board of supervisors shall submit a fiscal analysis to the California
Infrastructure and Economic Development Bank for review and
approval.
   (2) The bank may circulate the fiscal analysis to other state
agencies, including, but not limited to, the Department of Finance,
the Department of Housing and Community Development,
                          and the Office of Planning and Research,
and solicit their comments and recommendations. After considering the
comments and recommendations of other state agencies, if any, the
bank shall take one of the following actions:
   (A) Approve the fiscal analysis if the bank makes the finding
required pursuant to paragraph (4).
   (B) Return the fiscal analysis to the board of supervisors with
specific recommendations for changes that would allow the bank to
approve the fiscal analysis.
   (3) The bank shall have  30   90  days
from the receipt of the fiscal analysis to act pursuant to this
subdivision. If the bank does not act within  30 
 90  days, the fiscal analysis shall be deemed approved.
   (4) For bank approval, the fiscal analysis shall demonstrate to
the bank's reasonable satisfaction a reasonable probability that the
economic activity proposed to occur as a result of hosting the
America's Cup event in California would result in an amount of
revenue to the General Fund with a net present value that is greater
than the net present value of the amount of property tax increment
revenues that would be diverted from ERAF over the term of the Port
America's Cup district, taking into consideration all pertinent data.
In reviewing the board's fiscal analysis, the bank shall consider
only those General Fund revenues that would occur because of economic
activity proposed to occur as a result of hosting the America's Cup
event in California. The bank shall not consider those General Fund
revenues that would have occurred if the America's Cup event were not
held in California. 
   (5) The legislative body shall reimburse the bank for the
reasonable cost of the review and approval of the fiscal analysis.

   (g) (1) Before adopting the resolution authorizing the first debt
issuance by a TI district authorized by this section with a special
waterfront district enhanced financing plan, the legislative body of
the TI district shall submit a fiscal analysis to the California
Infrastructure and Economic Development Bank for review and approval.

   (2) The bank may circulate the fiscal analysis to other state
agencies, including, but not limited to, the Department of Finance,
the Department of Housing and Community Development, and the Office
of Planning and Research, and solicit their comments and
recommendations. After considering the comments and recommendations
of other state agencies, if any, the bank shall take one of the
following actions:
   (A) Approve the fiscal analysis if the bank makes the finding
required pursuant to paragraph (4).
   (B) Return the fiscal analysis to the legislative body of the TI
district with specific recommendations for changes that would allow
the bank to approve the fiscal analysis.
   (3) The bank shall have  45   90  days
from the receipt of the fiscal analysis to act pursuant to this
subdivision. If the bank does not act within  45 
 90  days, the fiscal analysis shall be deemed approved.
   (4) For bank approval, the fiscal analysis shall demonstrate to
the bank's reasonable satisfaction a reasonable probability that the
economic activity proposed to occur as a result of development of the
TI property would result in an amount of revenue to the General Fund
with a net present value that is greater than the net present value
of the amount of property tax increment revenues that would be
diverted from ERAF over the term of the TI district, taking into
consideration all pertinent data. In reviewing the board's fiscal
analysis, the bank shall consider only those General Fund revenues
that would occur because of economic activity proposed to occur as a
result of developing the TI property. The bank shall not consider
those General Fund revenues that would have occurred if the TI
property is not developed.
   (5) The legislative body shall reimburse the bank for the 
reasonable  cost of the review and approval  of the fiscal
analysis  .
   (h) The county auditor or officer responsible for the payment of
taxes into the funds of the respective taxing entities shall allocate
and pay to a special waterfront district the portion of taxes
required to be allocated pursuant to an approved special waterfront
district enhanced financing plan. If the plan allocates 100 percent
of the incremental tax revenue of San Francisco that is available
under applicable law to be allocated to the special waterfront
district, then the special waterfront district shall not make a
payment to ERAF, but if the plan allocates less than 100 percent of
the incremental tax revenue of San Francisco that is available under
applicable law to be allocated to a special waterfront district then
the special waterfront district shall pay a proportionate share of
incremental tax revenue into ERAF. The special waterfront district
shall file a statement of indebtedness and a reconciliation statement
annually in the same manner as described in subdivision (i) of
Section 53395.8. It is the intent of this subdivision that any
special waterfront district shall be deemed to be a district formed
pursuant to subparagraph (D) of paragraph (3) of subdivision (g) of
Section 53395.8 for purposes of allocation and payment of taxes by
the county auditor as set forth in subdivision (i) of Section
53395.8.
   (i)  With respect to a TI district, the reference in subparagraph
(D) of paragraph (1) of subdivision (g) of Section 53395.8 to the
executive director of the port shall be deemed to be a reference to
the controller of the City and County of San Francisco, or an
appropriate official designated by the controller.
   (j) This section implements and fulfills the intent of Article 2
(commencing with Section 53395.10) and of Article XIII B and is
consistent with the conclusion of California courts that tax
increment revenues are not "proceeds of taxes" for purposes of the
latter. The allocation and payment to a special waterfront district
of the special waterfront district ERAF share for the purpose of
paying principal of, or interest on, loans, advances, or indebtedness
incurred for facilities or the cost of acquisition and construction
of facilities under this section shall not be deemed the receipt by
the special waterfront district of proceeds of taxes levied by or on
behalf of the special waterfront district within the meaning or for
the purposes of Article XIII B of the California Constitution, nor
shall this portion of taxes be deemed the receipt of proceeds of
taxes by, or an appropriation subject to limitation of, any other
public body within the meaning or for purposes of Article XIII B of
the California Constitution or any statutory provision enacted in
implementation of Article XIII B. The allocation and payment to a
special waterfront district of this portion of taxes shall not be
deemed the appropriation by a special waterfront district of proceeds
of taxes levied by or on behalf of a district within the meaning or
for purposes of Article XIII B of the California Constitution.
   (k) Notwithstanding any provision to the contrary in Chapter 898
of the Statutes of 1997, as amended, or Chapter 543 of the Statutes
of 2004, as amended, in the event the port succeeds the authority as
trustee of some or all of the public trust lands within the TI
property, the port shall hold the lands subject to the public trust
for commerce, navigation, and fisheries and the requirements
applicable to the authority under Chapter 898 of the Statutes of
1997, as amended, and the lands shall not be subject to the Burton
Act trust. The port shall deposit all revenues from those lands into
the Treasure Island trust fund, which shall be maintained separately
from the harbor fund.
   (l) For purposes of this section, the meanings set forth in
subdivision (c) of Section 53395.8 shall apply as appropriate, and
the following terms have the following meanings, except as otherwise
provided:
   (1) "Affordable housing" means housing, whether publicly or
privately owned, available at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, or affordable rent, as
defined in Section 50053 of the Health and Safety Code, to persons
and families of low or moderate income, as defined in Section 50093
of the Health and Safety Code, lower income households, as defined in
Section 50079.5 of the Health and Safety Code, very low income
households, as defined in Section 50105 of the Health and Safety
Code, and extremely low income households, as defined in Section
50106 of the Health and Safety Code, that is occupied by those
persons and families.
   (2) "Authority" means the Treasure Island Development Authority or
any other local agency, public agency, city commission, or city
department that the board of supervisors, by resolution, designates
as having jurisdiction over TI property or authority under this
chapter to form one or more TI districts.
   (3) "Burton Act" means Chapter  133   1333
 of the Statutes of 1968, as amended.
   (4) "Harbor fund" means the separate fund in the treasury of the
City and County of San Francisco established and maintained in
accordance with Section B6.406 of Appendix B of the charter of the
City and County of San Francisco and Section 4 of the Burton Act.
   (5) "Job Corps parcel" means that property lying within the City
and County of San Francisco comprising that portion of the Tidelands
and Submerged Lands in San Francisco Bay known as Treasure Island
(Case 22164-G), commonly referred to as the Job Corps Center,
Treasure Island, which was transferred to the United States
Department of Labor by that certain document entitled "Transfer and
Acceptance of Military Real Property," dated March 3, 1998.
   (6) "Port America's Cup district" means a special waterfront
district that is not a TI district.
   (7) "Special waterfront district" means a waterfront district in
San Francisco that may comprise some or all of the America's Cup
venues or potential venues, including TI property.
   (8) "Special waterfront district enhanced financing plan" means an
infrastructure financing plan for a special waterfront district that
contains a provision substantially similar to that authorized for a
Pier 70 district under subparagraph (D) of paragraph (3) of
subdivision (g) of Section 55395.8, with only those changes deemed
necessary by the legislative body of the special waterfront district
to implement the financing of the improvements described in paragraph
(1) of subdivision (e).
   (9) "Special waterfront district ERAF-secured debt" means debt
incurred in accordance with a special waterfront district enhanced
financing plan that is secured by and will be repaid from the special
waterfront district ERAF share. For a Port America's Cup district,
special waterfront district ERAF-secured debt includes the portion of
any debt that is payable from the special waterfront district ERAF
share as long as the same percentage of debt proceeds will be used
for the purposes authorized by paragraph (2) of subdivision (e). For
a TI district, special waterfront district ERAF-secured debt may be
combined with any other debt of the TI district.
   (10) "Special waterfront ERAF share" means the county ERAF portion
of incremental tax revenue committed, as applicable, to a special
waterfront district under a special waterfront district enhanced
financing plan.
   (11) "TI district" means a special waterfront district formed on
land constituting all or a portion of the TI property.
   (12) "TI property" means all those lands comprised of portions of
the lands commonly known as Treasure Island and Yerba Buena Island
lying within the City and County of San Francisco, State of
California, described as follows, and the Job Corps Parcel if and to
the extent it is transferred to the authority from the United States
of America:
   All those lands comprised of portions of the lands commonly known
as Treasure Island and Yerba Buena Island lying within the City and
County of San Francisco, State of California, described as follows:
That portion of the lands described in that certain Presidential
Reservation of Goat Island (now Yerba Buena Island), dated November
6, 1850, lying northwesterly of Parcel 57935-1 as described in that
certain Quitclaim Deed, recorded October 26, 2000, as Document Number
2000G855531, in the office of the Recorder of the said City and
County of San Francisco (hereinafter referred to as Doc.
2000G855531); together with all of the underlying fee to Parcel
57935-5 as described in said Quitclaim Deed (Doc. 2000G855531) and
all of the underlying fee to Parcel 57935-6 as described in said
Quitclaim Deed (Doc. 2000G855531), also together with that portion of
the tide and submerged lands in San Francisco Bay, relinquished to
the United States of America by that certain act of the Legislature
of the State of California by Statutes of the State of California of
1897, Chapter 81 (hereinafter referred to as Stat. 1897, Ch. 81);
also together with all of the Tidelands and Submerged Lands in San
Francisco Bay known as Treasure Island as described in that certain
Final Judgment of Condemnation, filed April 3, 1944, in the District
Court of the United States in and for the Northern District of
California, Southern Division, Case Number 22164-G (hereinafter
referred to as Case 22164-G), also together with all of that portion
of the lands described in that certain Presidential Reservation of
Goat Island (now Yerba Buena Island), dated November 6, 1850, lying
southeasterly of Parcel 57935-1 as described in that certain
Quitclaim Deed, recorded October 26, 2000, as Document Number
2000G855531, in the office of the Recorder of the said City and
County of San Francisco (hereinafter referred to as Doc.
2000G855531); excepting therefrom those lands shown as the Lands of
the United States Coast Guard on that certain Record of Survey,
entitled "Record of Survey #5923" recorded in Book DD of Maps at
Pages 24-28 on April 28, 2010; also excepting therefrom, that portion
of the said Tide and Submerged Lands in San Francisco Bay,
relinquished to the United States of America (Stat. 1897, Ch. 81),
within the "Army Reservation, Occupied by U.S. Light House Service
under Permit from Secretary of War dated May 27, 1872" as shown and
described upon that certain map entitled "Plat of Army and Navy
reservations on Yerba Buena (Goat) Island, San Francisco Bay,
California"; and further excepting therefrom, that portion of the
Tide and Submerged Lands in San Francisco Bay, relinquished to the
United States of America (Stat. 1897, Ch. 81) which were transferred
to the United States Coast Guard by that certain document entitled
"Transfer and Acceptance of Military Real Property," dated November
26, 2002. As portions of said land are shown on those certain Records
of Survey filed for record: July 15, 2003, in Book M of maps at
pages 85 through 95, inclusive, and as shown on the map entitled "Map
and Metes and Bounds Description of United States Military and Naval
Reservations, Yerba Buena (Goat) Island, California" including land
ceded by the State of California by Act of Legislature of the State
of California, approved March 9,1897, (Stat. Cal., 1897, p. 74) filed
April 12, 1934, in Book N of Map at Page 14; and on April 28, 2010,
in Book DD of Maps at Pages 24-28, entitled "Record of Survey #5923";
recorded in the Office of the Recorder of the City and County of San
Francisco.
   (13) "Treasure Island trust fund" means the special fund
established and maintained in accordance with Section 10 of Chapter
898 of the Statutes of 1997.
  SEC. 4.  Section 53397.71 is added to the Government Code, to read:

   53397.71.  Notwithstanding the provisions of this article, the
legislative body of a waterfront district established pursuant to
Section 53395.8 may, by resolution, authorize the issuance of bonds
without holding an election of the voters residing in the waterfront
district.  The bonds of a waterfront district may be sold at a
negotiated sale subject to the notice requirements of Section
53397.10. 
  SEC. 5.  Section 3 of Chapter 898 of the Statutes of 1997 is
amended to read:
  Sec. 3.  (a) The Legislature finds and declares all of the
following:
   (b) It is the intent of the Legislature with the enactment of this
act to provide a means for mitigating the serious economic effects
of the closure of Naval Station Treasure Island on the City and
County of San Francisco, its surrounding communities, and the State
of California by granting the state's right, title, and interest in
the former naval station to the entity with primary responsibility
for the development and reuse of the property, and vesting in that
entity the power to administer the public trust.
   (1) That property known as Naval Station Treasure Island, which
includes Treasure Island and Yerba Buena Island, was selected for
closure and disposition by the Base Realignment and Closure
Commission in 1993, acting under Public Law 101-510 and its
subsequent amendments, and is scheduled for operational closure on
October 1, 1997. The conversion of Naval Station Treasure Island to
productive civilian reuse presents unique development issues which
would be best addressed by a public agency created specifically for
that purpose.
   (2) All former and existing tide and submerged lands on the Naval
Station, including all of Treasure Island and portions of Yerba Buena
Island, will be subject to the public trust for navigation,
commerce, and fisheries upon their release from federal ownership. In
the absence of legislative action, this property would automatically
be brought under the jurisdiction of the Port of San Francisco
pursuant to, and subject to the terms and requirements of, the Burton
Act (Chapter 1333 of the Statutes of 1968).
   (3) Certain buildings and other structures constructed on Treasure
Island during the period of federal ownership were built for
nontrust purposes and are not adaptable for trust-related uses. These
buildings and structures are in various stages of their useful
lives, some having been constructed only a few years prior to the
scheduled closure. The conversion of the lands underlying these
buildings and structures to trust uses in the future should proceed
in a manner that will enable the people of this state to benefit from
the substantial investments made in these structures without
hindering the overall goal of preserving the public trust.
   (4) Treasure Island also contains hangars that were built for
maritime aviation purposes. These structures may be utilized for
trust uses in the future, but no trust related use has been
identified for them in the near term.
   (5) Vesting the power to administer the trust in the designated
local reuse authority will facilitate the conversion of Naval Station
Treasure Island to productive civilian reuse and is in the best
interests of the people of this state.
  SEC. 6.  Section 5 of Chapter 898 of the Statutes of 1997, as
amended by Section 218 of Chapter 140 of the Statutes of 2009, is
amended to read:
  Sec. 5.  (a) Notwithstanding any state or local law, the board of
directors of the authority may include individuals who are officers
or employees of the City and County of San Francisco or of the San
Francisco Redevelopment Agency and those individuals are not
precluded, solely by virtue of their status as officers or employees
of the City and County of San Francisco or the San Francisco
Redevelopment Agency, from participating in decisions as members of
the board of directors.
   (b) Notwithstanding Section 1090 of the Government Code and
Section C8.105 of Appendix C of the San Francisco Charter, officers
and employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency are not precluded, solely by virtue of
their services as members of the board of directors, from
participating in any decisions in their capacities as officers or
employees of the City and County of San Francisco or the San
Francisco Redevelopment Agency.
   (c) Notwithstanding any other provision of law, the authority's
employees are subject to the same civil service provisions as the
employees of the City and County of San Francisco.
   (d) Amendments made to this section by the act adding this
subdivision shall take effect only after the Board of Supervisors of
the City and County of San Francisco adopts a resolution authorizing
the first debt issuance for a TI district with a special waterfront
district enhanced financing plan authorized by Section 53395.81 of
the Government Code.
  SEC. 7.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances of the City and County of San
Francisco. The facts constituting the special circumstances are:
   Areas of San Francisco, including the portions of the San
Francisco waterfront, are characterized by deteriorating conditions
that cannot be remedied by private investment alone, and require the
use of public financing mechanisms to finance the rectification of
the deteriorating conditions. In order to adapt the provisions of law
governing infrastructure financing districts to these unique
circumstances, this special act is necessary.