BILL NUMBER: AB 2146	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Mansoor

                        FEBRUARY 23, 2012

   An act to  amend Section 97.401 of the Revenue and
Taxation Code    add Chapter 2.95 (commencing with
Section 53399) to Part 1 of Division 2 of Title 5 of the Government
Code  , relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2146, as amended, Mansoor.  County auditor: former
redevelopment agencies: deposits: Educational Revenue Augmentation
Fund.   Former federal military bases: reuse:
infrastructure financing districts.  
   Existing law authorizes the legislative body of a city or county
to create an infrastructure financing district, adopt an
infrastructure financing plan, and issue financing bonds, to finance
specified public facilities, upon voter approval. Existing law
requires that an infrastructure financing plan created by a
legislative body include a date on which the district will cease to
exist, not to exceed 30 years from the date on which the ordinance
forming the district is adopted.  
   This bill would authorize the legislative body of a city or county
to establish an infrastructure financing district for the area of a
military base that has been closed by the federal government, as
specified. If the legislative body chooses to establish an
infrastructure financing district, the bill would require the
legislative body of the city or county to prepare an infrastructure
financing plan, subject to voter approval, as specified, and to
include a date on which the district will cease to exist, not to
exceed 30 years from the date on which the ordinance forming the
district is adopted. The bill would additionally authorize the
district to issue bonds, upon voter approval, to finance specified
improvements in the area of a military base that has been closed by
the federal government.  
   Existing law requires, commencing February 1, 2012, the county
auditor to make specified calculations based on the amount deposited
on behalf of each former redevelopment agency into the Redevelopment
Property Tax Trust Fund, and requires these calculations to result in
cities, counties, and special districts annually remitting to the
Educational Revenue Augmentation Fund the same amounts they would
have remitted but for the operation of a specified law. 

   This bill would make technical, nonsubstantive changes to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Chapter 2.95 (commencing with Section
53399) is added to Part 1 of Division 2 of Title 5 of the  
Government Code   , to read:  
      CHAPTER 2.95.  INFRASTRUCTURE FINANCING DISTRICTS REUSE OF
MILITARY BASES



      Article 1.  General Provisions


   53399.  The Legislature finds and declares all of the following:
   (a) Military bases that have been closed by the federal government
were not included as development in the general plans prepared by
cities and counties.
   (b) Cities and counties have not planned or provided for the
infrastructure necessary to reuse military bases that have been
closed by the federal government.
   (c) Military bases that have been closed by the federal government
typically have unusable aged infrastructure and inadequate or
nonexistent classroom space not capable of supporting future
development.
   (d) Several of these bases that would be best used as public
spaces, such as open space and parks, require environmental cleanup,
which will require funding.
   (e) If additional tax sources, based on the reuse of a military
base that has been closed by the federal government, are not directed
back to that former military base, the former military base is not
likely to be redeveloped, or it will take a considerably longer
amount of time to redevelop the former military base.
   (f) Allowing tax increment financing will allow the tax base to
increase more rapidly, thereby allowing these former military bases
to be developed.
   53399.1.  For purposes of this chapter, the following terms have
the following meanings:
   (a) "Affected taxing entity" means any governmental taxing agency
that levied or had levied on its behalf a property tax on all or a
portion of the property located in the proposed district in the
fiscal year prior to the designation of the district, but not
including any county office of education, school district, or
community college district.
   (b) "Debt" means any binding obligation to repay a sum of money,
including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals.
   (c) (1) "District" means an infrastructure financing district
established on a military base that has been closed by the federal
government.
   (2) An infrastructure financing district is a "district" within
the meaning of Section 1 of Article XIII A of the California
Constitution.
   (d) "Infrastructure financing district" means a legally
constituted governmental entity established pursuant to this chapter
for the sole purpose of financing public facilities on military bases
that have been closed by the federal government.
   (e) (1) "Landowner" or "owner of land" means any person shown as
the owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body.
   (2) The legislative body has no obligation to obtain other
information as to the ownership of land, and its determination of
ownership shall be final and conclusive for the purposes of this
chapter. A public agency is not a landowner or owner of land for
purposes of this chapter, unless the public agency owns all of the
land to be included within the proposed district.
   (f) "Legislative body" means the city council or board of
supervisors.
   53399.3.  (a) A district may finance any of the following:
   (1) Construction of any of the following forms of infrastructure:
   (A) Utilities.
   (B) Roads.
   (C) Architecture and engineering.
   (2) Project management related to the types of infrastructure
specified in paragraph (1).
   (3) Construction of school facilities, including architecture and
engineering, and outside project management.
   (b) A district shall not finance the compensation of government
officers or employees, routine or ongoing maintenance, repair work,
or the costs of ongoing operation.
   53399.5.  Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder, or an election pursuant to this chapter shall be
commenced within 30 days after the enactment of the ordinance
creating the district pursuant to Section 53399.36. Consistent with
the time limitations of this section, such an action or proceeding
with respect to a division of taxes under this chapter may be brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
Part 2 of the Code of Civil Procedure, except that Section 869 of the
Code of Civil Procedure shall not apply.
   53399.7.  An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after adoption of the resolution pursuant to
Section 53399.68 providing for issuance of the bonds if the action
is brought by an interested person pursuant to Section 863 of the
Code of Civil Procedure. Any appeal from a judgment in that action or
proceeding shall be commenced within 30 days after entry of
judgment.

      Article 2.  Preparation and Adoption of Infrastructure
Financing Plans


   53399.10.  A legislative body of a city or county may designate
one or more proposed infrastructure financing districts pursuant to
this chapter. Proceedings for the establishment of a district shall
be instituted by the adoption of a resolution of intention to
establish the proposed district and shall do all of the following:
   (a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city or
county.
   (b) State the type of public facilities proposed to be financed by
the district. The district may only finance public facilities
authorized by Section 53399.3.
   (c) State that incremental property tax revenue from the city or
county and some or all affected taxing entities within the district
may be used to finance these public facilities.
   (d) Fix a time and place for a public hearing on the proposal.
   53399.12.  The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district.
   53399.14.  The legislative body shall direct the clerk to mail a
copy of the resolution to each affected taxing entity.
   53399.16.  After adopting the resolution pursuant to Section
53399.10, the legislative body shall designate an appropriate
official to prepare an infrastructure plan pursuant to Section
53399.18.
   53399.18.  After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53399.16 shall prepare a proposed infrastructure financing plan. The
proposed infrastructure financing plan shall be consistent with the
general plan of the city or county within which the district is
located 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
legislative body in its resolution of intention.
   (b) A description of the public facilities required to serve the
development proposed in the area of 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 improvements and 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 costs of
the public improvements and facilities.
   (c) A finding that the public facilities are of communitywide
significance and provide significant benefits to an area larger than
the area of the district.
   (d) A financing section, which shall contain all of the following
information:
   (1) A specification of the maximum portion of the incremental tax
revenue of the city or county and of each affected taxing entity
proposed to be committed to the district for each year during which
the district will receive incremental tax revenue. The portion need
not be the same for all affected taxing entities. The portion may
change over time.
   (2) A projection of the amount of tax revenues expected to be
received by the district in each year during that the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.
   (3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
   (4) A limit on the total number of dollars of taxes that may be
allocated to the district pursuant to the plan.
   (5) A date on which the district will cease to exist, by which
time all tax allocations to the district will end. The date shall not
be more than 30 years from the date on which the ordinance forming
the district is adopted pursuant to Section 53399.36.
   (6) An analysis of the costs to the city or county of providing
facilities and services to the area of the district while the area is
being developed and after the area is developed. The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city or county as a result of expected
development in the area of the district.
   (7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
   53399.20.  The infrastructure financing plan shall be sent to each
owner of land within the proposed district and to each affected
taxing entity 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 or the proposed development project for which the
public facilities are needed, and shall be made available for public
inspection. The report shall also be sent to the planning commission
and the legislative body.
   53399.22.  The designated official shall consult with each
affected taxing entity, and, at the request of any affected taxing
entity, shall meet with representatives of an affected taxing entity.
Any affected taxing entity may suggest revisions to the plan.
   53399.24.  (a) The legislative body shall conduct a public hearing
prior to adopting the proposed infrastructure financing plan. The
public hearing shall be called no sooner than 60 days after the plan
has been sent to each affected taxing entity. In addition to the
notice given to landowners and affected taxing entities pursuant to
Sections 53399.14 and 53399.16, notice of the public hearing shall be
given by publication not less than once a week for four successive
weeks in a newspaper of general circulation published in the city or
county in which the proposed district is located. The notice shall
state that the district will be used to finance public works, briefly
describe the public works, briefly describe 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 prior proceedings, may appear before the
legislative body and object to the adoption of the proposed plan by
the legislative body.
   (b) At the hour set in the required notices, the legislative body
shall proceed to hear and pass upon all written and oral objections.
The hearing may be continued from time to time. The legislative body
shall consider the recommendations, if any, of affected taxing
entities, and all evidence and testimony for and against the adoption
of the plan. The legislative body may modify the plan by eliminating
or reducing the size and cost of proposed public works, by reducing
the amount of proposed debt, or by reducing the portion, amount, or
duration of incremental tax revenues to be committed to the district.

   53399.26.  (a) The legislative body shall not enact a resolution
proposing formation of a district and providing for the division of
taxes of any affected taxing entity pursuant to Article 3 (commencing
with Section 53399.50) unless a resolution approving the plan has
been adopted by the governing body of each affected taxing entity
which is proposed to be subject to the division of taxes pursuant to
Article 3 (commencing with Section 53399.50) has been filed with the
legislative body at or prior to the time of the hearing.
   (b) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting a resolution proposing formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity that has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
   53399.28.  (a) At the conclusion of the hearing in Section
53399.24, the legislative body may adopt a resolution proposing
adoption of the infrastructure financing plan, as modified, and
formation of the infrastructure financing district in a manner
consistent with Section 53399.26, or it may abandon the proceedings.
If the legislative body adopts a resolution proposing formation of
the district, it shall then submit the proposal to create the
district to the qualified electors of the proposed district in the
next general election or in a special election to be held,
notwithstanding any other requirement, including any requirement that
elections be held on specified dates, contained in the Elections
Code, at least 90 days, but not more than 180 days, following the
adoption of the resolution of formation. The legislative body shall
provide the resolution of formation, a certified map of sufficient
scale and clarity to show the boundaries of the district, and a
sufficient description to allow the election official to determine
the boundaries of the district to the official conducting the
election within three business days after the adoption of the
resolution of formation. The assessor's parcel numbers for the land
within the district shall be included if it is a landowner election
or the district does not conform to an existing district's boundaries
and if requested by the official conducting the election. If the
election is to be held less than 125 days following the adoption of
the resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct of
the election may be waived with the unanimous consent of the
qualified electors of the proposed district and the concurrence of
the election official conducting the election.
   (b) If at least 12 persons have been registered to vote within the
territory of the proposed district for each of the 90 days preceding
the close of the hearing, the vote shall be by the registered voters
of the proposed district, who need not necessarily be the same
persons, with each voter having one vote. Otherwise, the vote shall
be by the landowners of the proposed district and each landowner who
is the owner of record at the close of the protest hearing, or the
authorized representative thereof, shall have one vote for each acre
or portion of an acre of land that he or she owns within the proposed
district. The number of votes to be voted by a particular landowner
shall be specified on the ballot provided to that landowner.
   (c) Ballots for the special election authorized by subdivision (a)
may be distributed to qualified electors by mail with return postage
prepaid or by personal service by the election official. The
official conducting the election may certify the proper mailing of
ballots by an affidavit, which shall be exclusive proof of mailing in
the absence of fraud. The voted ballots shall be returned to the
election officer conducting the election not later than the hour
specified in the resolution calling the election. However, if all the
qualified voters have voted, the election shall be closed.
   53399.30.  (a) Except as otherwise provided in this chapter, the
provisions of law regulating elections of the local agency that calls
an election pursuant to this chapter, insofar as they may be
applicable, shall govern all elections conducted pursuant to this
chapter. Except as provided in subdivision (b), there shall be
prepared and included in the ballot material provided to each voter,
an impartial analysis pursuant to Section 9160 or 9280 of the
Elections Code, arguments and rebuttals, if any, pursuant to Sections
9162 to 9167, inclusive, and 9190 of the Elections Code or pursuant
to Sections 9281 to 9287, inclusive, and 9295 of the Elections Code.
   (b) If the vote is to be by the landowners of the proposed
district, analysis and arguments may be waived with the unanimous
consent of all the landowners and shall be so stated in the order for
the election.
   53399.32.  (a) If the election is to be conducted by mail ballot,
the election official conducting the election shall provide ballots
and election materials pursuant to subdivision (d) of Section 53326
and Section 53327, together with all supplies and instructions
necessary for the use and return of the ballot.
   (b) The identification envelope for return of mail ballots used in
landowner elections shall contain the following:
   (1) The name of the landowner.
   (2) The address of the landowner.
   (3) A declaration, under penalty of perjury, stating that the
voter is the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears on
the identification envelope.
   (4) The printed name and signature of the voter.
   (5) The address of the voter.
   (6) The date of signing and place of execution of the declaration
pursuant to paragraph (3).
   (7) A notice that the envelope contains an official ballot and is
to be opened only by the canvassing board.
   53399.34.  After the canvass of returns of any election pursuant
to Section 53399.28, the legislative body may, by ordinance, adopt
the infrastructure financing plan and create the district with full
force and effect of law, if two-thirds of the votes upon the question
of creating the district are in favor of creating the district.
   53399.36.  After the canvass of returns of any election conducted
pursuant to Section 53399.58, the legislative body shall take no
further action with respect to the proposed infrastructure financing
district for one year from the date of the election if the question
of creating the district fails to receive approval by two-thirds of
the votes cast upon the question.
   53399.38.  The legislative body may submit a proposition to
establish or change the appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIIIB of the California
Constitution, of a district to the qualified electors of a proposed
or established district. The proposition establishing or changing the
appropriations limit shall become effective if approved by the
qualified electors voting on the proposition and shall be adjusted
for changes in the cost of living and changes in populations, as
defined by subdivisions (b) and (c) of Section 7901, except that the
change in population may be estimated by the legislative body in the
absence of an estimate by the Department of Finance, and in
accordance with Section 1 of Article XIIIB of the California
Constitution. For purposes of adjusting for changes in population,
the population of the district shall be deemed to be at least one
person during each calendar year. Any election held pursuant to this
section may be combined with any election held pursuant to Section
53399.28 in any convenient manner.
   The legislative body may, by majority vote, initiate proceedings
to issue bonds pursuant to this chapter by adopting a resolution
stating its intent to issue the bonds, subject to voter approval.

      Article 3.  Division of Taxes


   53399.50.  Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure financing district each year
by or for the benefit of the State of California, or any affected
taxing entity after the effective date of the ordinance adopted
pursuant to Section 53399.34 to create the district, shall be divided
as follows:
   (a) 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 affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53399.26 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
   (b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and each
affected taxing entity that has agreed to participate pursuant to
Section 53399.26 in excess of the amount specified in subdivision (a)
shall be allocated to, and when collected shall be paid into a
special fund of, the district for all lawful purposes of the
district. Unless and until the total assessed valuation of the
taxable property in a district exceeds the total assessed value of
the taxable property in the district 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 district shall
be paid to the respective affected taxing entities. When the district
ceases to exist pursuant to the adopted infrastructure financing
plan, all moneys thereafter received from taxes upon the taxable
property in the district shall be paid to the respective affected
taxing entities as taxes on all other property are paid.
   53399.52.  All costs incurred by a city or county in connection
with the division of taxes pursuant to Section 53399.50 for a
district shall be paid by that district.

      Article 4.  Tax Increment Bonds


   53399.60.  The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
resolution stating its intent to issue the bonds, subject to water
approval.
   53399.62.  The resolution adopted pursuant to Section 53399.60
shall contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the proposed bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
proposed bond issuance.
   (c) The maximum interest rate and discount on the proposed bond
issuance.
   (d) The date of the election on the proposed bond issuance and the
manner of holding the election.
   (e) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
   (f) A finding that the amount necessary to pay the principal of,
and interest on, the proposed bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision (e).
   53399.64.  The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53399.60 once a day for at
least seven successive days in a newspaper published in the city or
county at least six days a week, or at least once a week for two
successive weeks in a newspaper published in the city or county less
than six days a week.
   If there are no newspapers meeting these criteria, the resolution
shall be posted in three public places within the territory of the
district for two succeeding weeks.
   53399.66.  The legislative body shall submit the proposal to issue
the bonds to the voters who reside within the district. The election
shall be conducted in the same manner as the election to create the
district pursuant to Section 53399.28 and the two elections may be
consolidated.
   53399.68.  (a) The bonds may be issued if two-thirds of the voters
voting on the proposition vote in favor of issuing the bonds.
   (b) If the voters approve the issuance of the bonds as provided by
subdivision (a), the legislative body shall proceed with the
issuance of the bonds by adopting a resolution that shall provide for
all of the following:
   (1) The issuance of the bonds in one or more series.
   (2) The principal amount of the bonds, which shall be consistent
with the amount specified in subdivision (b) of Section 53399.62.
   (3) The date the bonds will bear.
   (4) The date of maturity of the bonds.
   (5) The denomination of the bonds.
   (6) The form of the bonds.
   (7) The manner of execution of the bonds.
   (8) The medium of payment in which the bonds are payable.
   (9) The place or manner of payment and any requirements for
registration of the bonds.
   (10) The terms of call or redemption, with or without premium.
   53399.70.  If any proposition submitted to the voters pursuant to
this chapter is defeated by the voters, the legislative body shall
not submit, or cause to be submitted, a similar proposition to the
voters for at least one year after the first election.
   53399.72.  The legislative body may, by majority vote, provide for
refunding of bonds issued pursuant to this chapter. However,
refunding bonds shall not be issued if the total net interest cost to
maturity on the refunding bonds plus the principal amount of the
refunding bonds exceeds the total net interest cost to maturity on
the bonds to be refunded. The legislative body may not extend the
time to maturity of the bonds.
   53399.74.  The legislative body or any person executing the bonds
shall not be personally liable on the bonds by reason of their
issuance. The bonds and other obligations of a district issued
pursuant to this chapter are not a debt of the city, county, or state
or of any of its political subdivisions, other than the district,
and none of those entities, other than the district, shall be liable
on the bonds and the bonds or obligations shall be payable
exclusively from funds or properties of the district. The bonds shall
contain a statement to this effect on their face. The bonds do not
constitute an indebtedness within the meaning of any constitutional
or statutory debt limitation.
   53399.76.  The bonds may be sold at discount not to exceed 5
percent of par at public sale. At least five days prior to the sale,
notice shall be published, pursuant to Section 6061, in a newspaper
of general circulation and in a financial newspaper published in the
City and County of San Francisco and in the City of Los Angeles. The
bonds may be sold at not less than par to the federal government at
private sale without any public advertisement.
   53399.78.  If any member of the legislative body whose signature
appears on bonds ceases to be a member of the legislative body before
delivery of the bonds, his or her signature is as effective as if he
or she had remained in office. Bonds issued pursuant to this chapter
are fully negotiable.  
  SECTION 1.    Section 97.401 of the Revenue and
Taxation Code is amended to read:
   97.401.  Commencing February 1, 2012, the county auditor shall
make the calculations required pursuant to Section 97.4 based on the
amount deposited on behalf of each former redevelopment agency into
the Redevelopment Property Tax Trust Fund pursuant to paragraph (1)
of subdivision (c) of Section 34182 of the Health and Safety Code.
The calculations required pursuant to Section 97.4 shall result in
cities, counties, and special districts annually remitting to the
Educational Revenue Augmentation Fund the same amounts they would
have remitted but for the operation of Part 1.8 (commencing with
Section 34161) and Part 1.85 (commencing with Section 34170) of
Division 24 of the Health and Safety Code.