California Legislature—2013–14 Regular Session

Assembly Bill No. 229

Introduced by Assembly Member John A. Pérez

(Coauthors: Assembly Members Atkins, Bonilla, Bonta, Cooley, Dickinson, and Gordon)

February 4, 2013

An act to add Chapter 2.10 (commencing with Section 53399) to Part 1 of Division 2 of Title 5 of the Government Code, and to amend Section 33459 of the Health and Safety Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 229, as introduced, John A. Pérez. Local government: infrastructure and revitalization financing districts.

Existing law authorizes the creation of infrastructure financing districts, as defined, for the sole purpose of financing public facilities, subject to adoption of a resolution by the legislative body and affected taxing entities proposed to be subject to division of taxes and 2⁄3 voter approval. Existing law authorizes the legislative body to, by majority vote, initiate proceedings to issue bonds for the financing of district projects by adopting a resolution, subject to specified procedures and 2⁄3 voter approval. Existing law requires an infrastructure financing plan to include the date on which an infrastructure financing district will cease to exist, which may not be more than 30 years from the date on which the ordinance forming the district is adopted. Existing law prohibits a district from including any portion of a redevelopment project area. Existing law, the Polanco Redevelopment Act, authorizes a redevelopment agency to take any action that the agency determines is necessary and consistent with state and federal laws to remedy or remove a release of hazardous substances on, under, or from property within a project area, whether the agency owns that property or not, subject to specified conditions. Existing law also declares the intent of the Legislature that the areas of the district created be substantially undeveloped, and that the establishment of a district should not ordinarily lead to the removal of dwelling units.

This bill would authorize the creation of an infrastructure and revitalization financing district, as defined, and the issuance of debt with 2⁄3 voter approval. The bill would authorize the creation of a district for up to 40 years and the issuance of debt with a final maturity date of up to 30 years, as specified. The bill would authorize a district to finance projects in redevelopment project areas and former redevelopment project areas and former military bases. The bill would authorize the legislative body of a city to dedicate any portion of its funds received from the Redevelopment Property Tax Trust Fund to the district, if specified criteria are met. The bill would authorize a city to form a district to finance a project or projects on a former military base, if specified conditions are met.

The bill would authorize a district to fund various projects, including, among others, watershed land used for the collection and treatment of water for urban uses, flood management, levees, bypasses, open space, habitat restoration, brownfields restoration, environmental mitigation, purchase of land and property for development purposes, including commercial property, hazardous cleanup, former military bases, and specified transportation purposes. The bill would authorize a district to implement hazardous cleanup pursuant to the Polanco Redevelopment Act, as specified. The bill would impose a specified reporting requirement on districts. The bill would state that it is the intent of the Legislature that the establishment of a district should not ordinarily lead to the removal of existing functional, habitable, and safe dwelling units, as specified. The bill would define the term “public works” for purposes of these provisions.

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.  

Chapter 2.10 (commencing with Section 53399)
is added to Part 1 of Division 2 of Title 5 of the Government Code,
to read:

 

Chapter  2.10. Infrastructure and Revitalization
Financing Districts

 

Article 1.  General Provisions

 

53399.  

It is the intent of the Legislature in enacting this chapter
to establish a long-term permanent program that provides local
governments with tools and resources for specified purposes,
including, but not limited to, public infrastructure, affordable
housing, economic development and job creation, and
environmental protection and remediation, in a manner that
encourages local cooperation and includes appropriate protections
for state and local taxpayers.

53399.1.  

Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.

(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) “City” means a city, county, city and county, or joint powers
authority that is acting as the military base reuse authority
established pursuant to Title 7.86 (commencing with Section
67800).

(c) “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.

(d) “Designated official” means the city engineer or other
appropriate official designated pursuant to Section 53399.13.

(e) (1) “District” means an infrastructure and revitalization
financing district.

(2) An infrastructure and revitalization financing district is a
“district” within the meaning of Section 1 of Article XIII A of the
California Constitution.

(f) “Infrastructure and revitalization financing district” means
a legally constituted governmental entity established pursuant to
this chapter for the sole purpose of financing facilities authorized
by this chapter.

(g) “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. The legislative body does not have any 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.

(h) “Legislative body” means the city council, board of
supervisors, or joint powers authority that is acting as the military
base reuse authority established pursuant to Title 7.86
(commencing with Section 67800).

(i) “Project area” means a defined area within a district in which
the activities of the district share a common purpose or goal and
an overall financing plan.

(j) “Public works” means public facilities or any other facilities
described in Section 53399.3 that are to be financed in whole or
in part by the district.

(k) “Net available revenue” means periodic distributions to the
city from the Redevelopment Property Tax Trust Fund, created
pursuant to Section 34170.5 of the Health and Safety Code, that
are available to the city after all preexisting legal commitments
and statutory obligations funded from that revenue are made
pursuant to Part 1.85 (commencing with Section 34170) of Division
24 of the Health and Safety Code. Net available revenue shall only
include revenue remaining after all current distributions, including,
but not limited to, payment of enforceable obligations, all
distributions to other taxing entities, and applicable administrative
fees, have been made.

53399.2.  

(a) The revenues available pursuant to Article 3
(commencing with Section 53399.30) may be used directly for
work allowed pursuant to Section 53399.3, may be accumulated
for a period not to exceed five years to provide a fund for that
work, may be pledged to pay the principal of, and interest on,
bonds issued pursuant to Article 4 (commencing with Section
53399.40), or may be pledged to pay the principal of, and interest
on, bonds issued pursuant to the Improvement Bond Act of 1915
(Division 10 (commencing with Section 8500) of the Streets and
Highways Code) or the Mello-Roos Community Facilities Act of
1982 (Chapter 2.5 (commencing with Section 53311)), the proceeds
of which have been or will be used entirely for allowable purposes
of the district. The revenue of the district may also be advanced
for allowable purposes of the district to an Integrated Financing
District established pursuant to Chapter 1.5 (commencing with
Section 53175), in which case the district may be party to a
reimbursement agreement established pursuant to that chapter.
The revenues of the district may also be committed to paying for
any completed facility acquired pursuant to Section 53399.3 over
a period of time, including the payment of a rate of interest not to
exceed the bond buyer index rate on the day that the agreement to
repay is entered into by the city.

(b) The legislative body may enter into an agreement with any
affected taxing entity providing for the construction of, or
assistance in, financing facilities.

53399.3.  

(a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer which satisfies the
requirements of subdivision (b), (2) planning and design work that
is directly related to the purchase, construction, expansion,
improvement, rehabilitation, or seismic retrofit of that property,
and (3) the costs described in Sections 53399.6 and 53399.31. The
facilities need not be physically located within the boundaries of
the district. A district may not finance routine maintenance, repair
work, or the costs of ongoing operation or providing services of
any kind.

(b) The district shall finance only facilities or projects of
communitywide significance, including, but not limited to, any of
the following:

(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.

(2) Sewage treatment and water reclamation plants and
interceptor pipes.

(3) Facilities and watershed lands used for the collection and
treatment of water for urban uses.

(4) Flood management, including levees, bypasses, dams,
retention basins, and drainage channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, open space, and habitat
restoration.

(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.

(9) Brownfields restoration and other environmental mitigation.

(10) Purchase of land and property for development purposes
and related site improvements.

(11) Acquisition, construction, or repair of housing for rental
or purchase, including multipurpose facilities.

(12) Acquisition, construction, or repair of commercial or
industrial structures for private use.

(13) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851.

(c) Any district that constructs dwelling units shall set aside not
less than 20 percent of those units to increase and improve the
community’s supply of low- and moderate-income housing
available at an affordable housing cost, as defined by Section
50052.5 of the Health and Safety Code, or at an affordable rent,
as defined by Section 50053 of the Health and Safety Code, to
persons and families of low and moderate income, as defined in
Section 50093 of the Health and Safety Code.

(d) A district may utilize any powers under the Polanco
Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety Code), and finance any action necessary to implement that
act.

(e) A district may finance any project that implements a
sustainable communities strategy prepared pursuant to Section
65080.

53399.4.  

(a) A city may form a district to finance a project or
projects on a former military base pursuant to the requirements set
forth in this chapter.

(b) A district formed under this section may finance a project
pursuant to this section or Section 53399.3 only if the project is
consistent with the authority reuse plan and is approved by the
military base reuse authority, if applicable.

53399.5.  

(a) A district may finance only the facilities or
services authorized in this chapter. The additional facilities or
services may not supplant facilities or services already available
within that territory when the district was created, except if those
facilities or services are essentially nonfunctional, obsolete,
hazardous, or in need of upgrading or rehabilitation. The additional
facilities or services may supplement those facilities and services
as needed to serve new developments.

(b) A district may include areas that are not contiguous. A
district may be divided into project areas, each of which may be
subject to distinct limitations established under this chapter. The
legislative body may, at any time, add territory to a district or
amend the infrastructure financing plan for the district by
conducting the same procedures for the formation of a district or
approval of bonds, if applicable, as provided pursuant to this
chapter.

(c) Any district may finance any project or portion of a project
that is located in, or overlaps with, any redevelopment project area
or former redevelopment project area or former military base.

(d) Notwithstanding subdivision (c), any debt or obligation of
a district shall be subordinate to an enforceable obligation of a
former redevelopment agency, as defined in Section 34171 of the
Health and Safety Code.

(e) The legislative body of the city forming the district may
choose to dedicate any portion of its net available revenue to the
district through the financing plan described in Section 53399.14.

53399.6.  

It is the intent of the Legislature that the establishment
of a district should not ordinarily lead to the removal of existing
functional, habitable, and safe dwelling units. If, however, any
dwelling units are proposed to be removed or destroyed in the
course of private development or facilities construction within the
area of the district, the legislative body shall do all of the following:

(a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number
of replacement dwelling units 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,
within the territory of the district if the dwelling units removed
were inhabited by persons or families of low or moderate income,
as defined in Section 50093 of the Health and Safety Code.

(b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units
which is at least one unit but not less than 20 percent of the total
dwelling units removed 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, within
the territory of the district if the dwelling units removed or
destroyed were not inhabited by persons of low or moderate
income, as defined in Section 50093 of the Health and Safety Code.

(c) In the case of dwelling units located on a former military
base that are destroyed or removed in connection with a base reuse
plan, replacement dwelling units required by subdivision (a) or
(b) may be located anywhere within the territory of the former
military base consistent with the base reuse plan, local general
plan, and infrastructure financing plan, as applicable.

(d) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of
Division 7 of Title 1, to persons displaced by any public or private
development occurring within the territory of the district. This
displacement shall be deemed to be the result of public action.

(e) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not
take place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families
were displaced, available and ready for occupancy by the residents
of the units at the time of their displacement. The housing units
shall be suitable to the needs of these displaced persons or families
and shall be decent, safe, sanitary, and otherwise standard
dwellings.

53399.7.  

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 53399.23. 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.

53399.8.  

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 53399.44 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
Revitalization Financing District Plans

 

53399.10.  

A legislative body of a city may designate one or
more proposed infrastructure revitalization 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 revitalization financing district
is proposed to be established under the terms of this chapter and
describe the boundaries of the proposed district and any project
area proposed within the district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.

(b) State the type of facilities proposed to be financed by the
district. The district may only finance facilities authorized by
Section 53399.3.

(c) State that incremental property tax revenue from the city
and some or all affected taxing entities within the district may be
used to finance these facilities.

(d) State that net available revenue from the city may be used
to finance these facilities and state the maximum portion of the
net available revenue to be committed to the district for each year
during which the district will receive these revenues.

(e) Fix a time and place for a public hearing on the proposal.

53399.11.  

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.

53399.12.  

The legislative body shall direct the clerk to mail a
copy of the resolution to each affected taxing entity.

53399.13.  

After adopting the resolution pursuant to Section
53399.10, the legislative body shall designate and direct the city
engineer or other appropriate official to prepare an infrastructure
plan pursuant to Section 53399.14.

53399.14.  

After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53399.13 shall prepare a proposed infrastructure financing plan.
The infrastructure financing plan shall be consistent with the
general plan of the city 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 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
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 improvements and facilities.

(c) A finding that the facilities are of communitywide
significance.

(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 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 which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity proposed to be
committed to the district for each year. If applicable, the plan shall
also include a specification of the maximum portion of the net
available revenue of the city proposed to be committed to the
district for each year during which the district will receive revenue.
The portion may vary over time.

(3) A plan for financing the 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 shall cease to exist, by which
time all tax allocation, including any allocation of net available
revenue, to the district will end. The date shall not be more than
40 years from the date on which the ordinance forming the district
is adopted pursuant to Section 53399.23, or a later date, if specified
by the ordinance, on which the allocation of tax increment will
begin. The district may issue debt with a final maturity date of up
to 30 years from the date of issuance of each debt issue, subject
to the time limit on tax allocation to the district.

(6) An analysis of the costs to the city 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 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 that
is proposed to participate in financing the district.

(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including
any permit and affordable housing expenses related to the project.

(e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in
the course of private development or facilities construction within
the area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with
the requirements of Section 53399.6.

53399.15.  

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
facilities or the proposed development project for which the
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.

53399.16.  

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.

53399.17.  

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 53399.11 and 53399.12, 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 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.

53399.18.  

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.

53399.19.  

(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 53399.30) 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 division of taxes
pursuant to Article 3 (commencing with Section 53399.30) has
been filed with the legislative body at or prior to the time of the
hearing.

(b) In the case of an affected taxing entity that is a special district
that provides fire protection services and where the county board
of supervisors is the governing authority or has appointed itself as
the governing board of the district, the plan shall be adopted by a
separate resolution approved by the district’s governing authority
or governing board.

(c) 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 revitalization
financing district without allocation of the tax revenues of any
affected taxing entity which has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.

53399.20.  

(a) At the conclusion of the hearing, the legislative
body may adopt a resolution proposing adoption of the
infrastructure financing plan, as modified, and formation of the
infrastructure revitalization financing district in a manner consistent
with Section 53399.19, 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.

53399.21.  

(a) Except as otherwise provided in this chapter,
laws 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.

53399.22.  

(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.

53399.23.  

After the canvass of returns of any election pursuant
to Section 53399.20, 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.

53399.24.  

After the canvass of returns of any election
conducted pursuant to Section 53399.20, the legislative body shall
take no further action with respect to the proposed infrastructure
revitalization financing district for one year from the date of the
election if the question of creating the district fails to receive
approval of two-thirds of the votes cast upon the question.

53399.25.  

The legislative body may submit a proposition to
establish or change the appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIII   B 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 XIII   B 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 53395.20 in any convenient manner.

53399.26.  

No later than June 30 of each year after the adoption
of an infrastructure financing plan, the legislative body shall post
an annual report in an easily identifiable and accessible location
on the legislative body’s Internet Web site. The annual report shall
contain all of the following:

(a) A summary of the district’s expenditures.

(b) A description of the progress made toward the district’s
adopted goals.

(c) An assessment of the status regarding completion of the
district’s projects.

 

Article 3.  Division of Taxes

 

53399.30.  

Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure revitalization 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 53399.23 to create the district, shall
be divided as follows:

(a) That portion of the taxes which 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 53399.23 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 and each affected
taxing entity which has agreed to participate pursuant to Section
53399.19 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.

53399.31.  

All costs incurred by a county in connection with
the division of taxes pursuant to Section 53399.30 for a district
shall be paid by that district.

 

Article 4.  Tax Increment Bonds

 

53399.40.  

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.

53399.41.  

The resolution adopted pursuant to Section 53399.40
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).

53399.42.  

The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53399.40 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.

53399.43.  

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 53399.20 and the two
elections may be consolidated.

53399.44.  

(a) Bonds may be issued only if two-thirds of the
voters voting on the proposition vote in favor of authorizing the
issuance of the bonds.

(b) If the voters authorize the issuance of the bonds as provided
by subdivision (a), the legislative body may subsequently proceed
with the issuance of the bonds by adopting a resolution which 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 53399.41.

(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.

53399.45.  

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.

53399.46.  

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.

53399.47.  

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.

53399.48.  

(a) The bonds may be sold at discount not to exceed
5 percent of par at a negotiated or public sale. At least five days
prior to a public 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.

(b) Any negotiated sale of bonds pursuant to this section shall
be limited to bond issuances of an infrastructure and revitalization
financing district that do not exceed five million dollars
($5,000,000).

53399.49.  

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.

SEC. 2.  

Section 33459 of the Health and Safety Code is
amended to read:

33459.  

For purposes of this article, the following terms shall
have the following meanings:

(a) “Department” means the Department of Toxic Substances
Control.

(b) “Director” means the Director of Toxic Substances Control.

(c) “Hazardous substance” means any hazardous substance as
defined in subdivision (h) of Section 25281, and any reference to
hazardous substance in the definitions referenced in this section
shall be deemed to refer to hazardous substance, as defined in this
subdivision.

(d) “Local agency” means a single local agency that is one of
the following:

(1) A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and
Chapter 6.75 (commencing with Section 25299.10) of, Division
20.

(2) A local officer who is authorized pursuant to Section 101087
to supervise a remedial action.

begin insert

(3) An infrastructure and revitalization financing district.

end insert

(e) “Qualified independent contractor” means an independent
contractor who is any of the following:

(1) An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.

(2) A geologist who is registered pursuant to Section 7850 of
the Business and Professions Code.

(3) A civil engineer who is registered pursuant to Section 6762
of the Business and Professions Code.

(f) “Release” means any release, as defined in Section 25320.

(g) “Remedy” or “remove” means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
“Remedy” includes any action set forth in Section 25322 and
“remove” includes any action set forth in Section 25323.

(h) “Responsible party” means any person described in
subdivision (a) of Section 25323.5 of this code or subdivision (a)
of Section 13304 of the Water Code.