Amended in Assembly April 8, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 229


Introduced by Assembly Member John A. Pérez

(Coauthors: Assembly Members Atkins, Bonilla, Bonta, Cooley, Dickinson,begin delete and Gordonend deletebegin insert Gordon, and Torresend insert)

February 4, 2013


An act to add Chapterbegin delete 2.10end deletebegin insert 2.6end insert (commencing with Sectionbegin delete 53399)end deletebegin insert 53369)end insert 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 amended, 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 23 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 23 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 23 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:

P3    1

SECTION 1.  

Chapterbegin delete 2.10end deletebegin insert 2.6end insert (commencing with Section
2begin delete 53399) end deletebegin insert 53369)end insert is added to Part 1 of Division 2 of Title 5 of the 3Government Code, to read:

4 

5Chapter  begin delete2.10. end deletebegin insert2.6.end insert Infrastructure and Revitalization
6Financing Districts
7

7 

8Article 1.  General Provisions
9

 

10

begin delete53399.end delete
11begin insert53369.end insert  

It is the intent of the Legislature in enacting this chapter
12to establish a long-term permanent program that provides local
13governments with tools and resources for specified purposes,
14including, but not limited to, public infrastructure, affordable
15housing, economic development and job creation, and
16environmental protection and remediation, in a manner that
17encourages local cooperation and includes appropriate protections
18for state and local taxpayers.

19

begin delete53399.1.end delete
20begin insert53369.1.end insert  

Unless the context otherwise requires, the definitions
21contained in this article shall govern the construction of this
22chapter.

23(a) “Affected taxing entity” means any governmental taxing
24agency that levied or had levied on its behalf a property tax on all
25or a portion of the property located in the proposed district in the
26fiscal year prior to the designation of the district, but not including
27any county office of education, school district, or community
28college district.

29(b) “City” means a city, county, city and county, or joint powers
30begin delete authorityend deletebegin insert authority, whereend insert thatbegin insert entityend insert is acting as the military base
31reuse authority established pursuant to Title 7.86 (commencing
32with Section 67800).

33(c) “Debt” means any binding obligation to repay a sum of
34money, including obligations in the form of bonds, certificates of
35participation, long-term leases, loans from government agencies,
36or loans from banks, other financial institutions, private businesses,
37or individuals.

P4    1(d) “Designated official” means the city engineer or other
2appropriate official designated pursuant to Sectionbegin delete 53399.13.end delete
3begin insert 53369.13.end insert

4(e) (1) “District” means an infrastructure and revitalization
5financing district.

6(2) An infrastructure and revitalization financing district is a
7“district” within the meaning of Section 1 of Article XIII A of the
8California Constitution.

9(f) “Infrastructure and revitalization financing district” means
10a legally constituted governmental entity established pursuant to
11this chapter for the sole purpose of financing facilities authorized
12by this chapter.

13(g) “Landowner” or “owner of land” means any person shown
14as the owner of land on the last equalized assessment roll or
15otherwise known to be the owner of the land by the legislative
16body. The legislative body does not have any obligation to obtain
17other information as to the ownership of land, and its determination
18of ownership shall be final and conclusive for the purposes of this
19chapter. A public agency is not a landowner or owner of land for
20purposes of this chapter, unless the public agency owns all of the
21land to be included within the proposed district.

22(h) “Legislative body” means the city council, board of
23supervisors, or joint powers authority that is acting as the military
24base reuse authority established pursuant to Title 7.86
25(commencing with Section 67800).

26(i) “Project area” means a defined area within a district in which
27the activities of the district share a common purpose or goal and
28an overall financing plan.

29(j) “Public works” means public facilities or any other facilities
30described in Sectionbegin delete 53399.3end deletebegin insert 53369.3end insert that are to be financed in
31whole or in part by the district.

32(k) “Net available revenue” means periodic distributions to the
33city from the Redevelopment Property Tax Trust Fund, created
34pursuant to Section 34170.5 of the Health and Safety Code, that
35are available to the city after all preexisting legal commitments
36and statutory obligations funded from that revenue are made
37pursuant to Part 1.85 (commencing with Section 34170) of Division
3824 of the Health and Safety Code. Net available revenue shall only
39include revenue remaining after all current distributions, including,
40but not limited to, payment of enforceable obligations, all
P5    1distributions to other taxing entities, and applicable administrative
2fees, have been made.

3

begin delete53399.2.end delete
4begin insert53369.2.end insert  

(a) The revenues available pursuant to Article 3
5(commencing with Sectionbegin delete 53399.30)end deletebegin insert 53369.30)end insert may be used
6directly for work allowed pursuant to Sectionbegin delete 53399.3,end deletebegin insert 53369.3,end insert
7 may be accumulated for a period not to exceed five years to provide
8a fund for that work, may be pledged to pay the principal of, and
9interest on, bonds issued pursuant to Article 4 (commencing with
10Sectionbegin delete 53399.40),end deletebegin insert 53369.40),end insert or may be pledged to pay the
11principal of, and interest on, bonds issued pursuant to the
12Improvement Bond Act of 1915 (Division 10 (commencing with
13Section 8500) of the Streets and Highways Code) or the
14Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
15(commencing with Section 53311)), the proceeds of which have
16been or will be used entirely for allowable purposes of the district.
17The revenue of the district may also be advanced for allowable
18purposes of the district to an Integrated Financing District
19 established pursuant to Chapter 1.5 (commencing with Section
2053175), in which case the district may be party to a reimbursement
21agreement established pursuant to that chapter. The revenues of
22the district may also be committed to paying for any completed
23facility acquired pursuant to Sectionbegin delete 53399.3end deletebegin insert 53369.3end insert over a period
24of time, including the payment of a rate of interest not to exceed
25the bond buyer index rate on the day that the agreement to repay
26is entered into by the city.

27(b) The legislative body may enter into an agreement with any
28affected taxing entity providing for the construction of, or
29assistance in, financing facilities.

30

begin delete53399.3.end delete
31begin insert53369.3.end insert  

(a) A district may finance (1) the purchase,
32construction, expansion, improvement, seismic retrofit, or
33rehabilitation of any real or other tangible property with an
34estimated useful life of 15 years or longer which satisfies the
35requirements of subdivision (b), (2) planning and design work that
36is directly related to the purchase, construction, expansion,
37improvement, rehabilitation, or seismic retrofit of that property,
38and (3) the costs described in Sectionsbegin delete 53399.6end deletebegin insert 53369.6end insert and
39begin delete 53399.31.end deletebegin insert 53369.31.end insert The facilities need not be physically located
40within the boundaries of the district. A district may not finance
P6    1routine maintenance, repair work, or the costs of ongoing operation
2or providing services of any kind.

3(b) The district shall finance only facilities or projects of
4communitywide significance, including, but not limited to, any of
5the following:

6(1) Highways, interchanges, ramps and bridges, arterial streets,
7parking facilities, and transit facilities.

8(2) Sewage treatment and water reclamation plants and
9interceptor pipes.

10(3) Facilities and watershed lands used for the collection and
11treatment of water for urban uses.

12(4) Flood management, including levees, bypasses, dams,
13retention basins, and drainage channels.

14(5) Child care facilities.

15(6) Libraries.

16(7) Parks, recreational facilities, open space, and habitat
17restoration.

18(8) Facilities for the transfer and disposal of solid waste,
19including transfer stations and vehicles.

20(9) Brownfields restoration and other environmental mitigation.

21(10) Purchase of land and property for development purposes
22and related site improvements.

23(11) Acquisition, construction, or repair of housing for rental
24or purchase, including multipurpose facilities.

25(12) Acquisition, construction, or repair of commercial or
26industrial structures for private use.

27(13) The repayment of the transfer of funds to a military base
28reuse authority pursuant to Section 67851.

29(c) Any district that constructs dwelling units shall set aside not
30less than 20 percent of those units to increase and improve the
31community’s supply of low- and moderate-income housing
32available at an affordable housing cost, as defined by Section
3350052.5 of the Health and Safety Code, or at an affordable rent,
34as defined by Section 50053 of the Health and Safety Code, to
35persons and families of low and moderate income, as defined in
36Section 50093 of the Health and Safety Code.

37(d) A district may utilize any powers under the Polanco
38Redevelopment Act (Article 12.5 (commencing with Section
3933459) of Chapter 4 of Part 1 of Division 24 of the Health and
P7    1Safety Code), and finance any action necessary to implement that
2act.

3(e) A district may finance any project that implements a
4sustainable communities strategy prepared pursuant to Section
565080.

6

begin delete53399.4.end delete
7begin insert53369.4.end insert  

(a) A city may form a district to finance a project or
8projects on a former military base pursuant to the requirements set
9forth in this chapter.

10(b) A district formed under this section may finance a project
11pursuant to this section or Sectionbegin delete 53399.3end deletebegin insert 53369.3end insert only if the
12project is consistent with the authority reuse plan and is approved
13by the military base reuse authority, if applicable.

14

begin delete53399.5.end delete
15begin insert53369.5.end insert  

(a) A district may finance only the facilities or
16services authorized in this chapter. The additional facilities or
17services may not supplant facilities or services already available
18within that territory when the district was created, except if those
19facilities or services are essentially nonfunctional, obsolete,
20hazardous, or in need of upgrading or rehabilitation. The additional
21facilities or services may supplement those facilities and services
22as needed to serve new developments.

23(b) A district may include areas that are not contiguous. A
24district may be divided into project areas, each of which may be
25subject to distinct limitations established under this chapter. The
26legislative body may, at any time, add territory to a district or
27amend the infrastructure financing plan for the district by
28conducting the same procedures for the formation of a district or
29approval of bonds, if applicable, as provided pursuant to this
30chapter.

31(c) Any district may finance any project or portion of a project
32that is located in, or overlaps with, any redevelopment project area
33or former redevelopment project area or former military base.

34(d) Notwithstanding subdivision (c), any debt or obligation of
35a district shall be subordinate to an enforceable obligation of a
36former redevelopment agency, as defined in Section 34171 of the
37Health and Safety Code.

38(e) The legislative body of the city forming the district may
39choose to dedicate any portion of its net available revenue to the
P8    1district through the financing plan described in Sectionbegin delete 53399.14end delete
2begin insert 53369.14end insert.

3

begin delete53399.6.end delete
4begin insert53369.6.end insert  

It is the intent of the Legislature that the establishment
5of a district should not ordinarily lead to the removal of existing
6functional, habitable, and safe dwelling units. If, however, any
7dwelling units are proposed to be removed or destroyed in the
8course of private development or facilities construction within the
9area of the district, the legislative body shall do all of the following:

10(a) Within four years of the removal or destruction, cause or
11require the construction or rehabilitation, for rental or sale to
12persons or families of low or moderate income, of an equal number
13of replacement dwelling units at affordable housing cost, as defined
14in Section 50052.5 of the Health and Safety Code, or affordable
15rent, as defined in Section 50053 of the Health and Safety Code,
16within the territory of the district if the dwelling units removed
17were inhabited by persons or families of low or moderate income,
18as defined in Section 50093 of the Health and Safety Code.

19(b) Within four years of the removal or destruction, cause or
20require the construction or rehabilitation, for rental or sale to
21persons of low or moderate income, a number of dwelling units
22which is at least one unit but not less than 20 percent of the total
23dwelling units removed at affordable housing cost, as defined in
24Section 50052.5 of the Health and Safety Code, or affordable rent,
25as defined in Section 50053 of the Health and Safety Code, within
26the territory of the district if the dwelling units removed or
27destroyed were not inhabited by persons of low or moderate
28income, as defined in Section 50093 of the Health and Safety Code.

29(c) In the case of dwelling units located on a former military
30base that are destroyed or removed in connection with a base reuse
31plan, replacement dwelling units required by subdivision (a) or
32(b) may be located anywhere within the territory of the former
33military base consistent with the base reuse plan, local general
34plan, and infrastructure financing plan, as applicable.

35(d) Provide relocation assistance and make all the payments
36required by Chapter 16 (commencing with Section 7260) of
37Division 7 of Title 1, to persons displaced by any public or private
38development occurring within the territory of the district. This
39displacement shall be deemed to be the result of public action.

P9    1(e) Ensure that removal or destruction of any dwelling units
2occupied by persons or families of low or moderate income not
3take place unless and until there are suitable housing units, at
4 comparable cost to the units from which the persons or families
5were displaced, available and ready for occupancy by the residents
6of the units at the time of their displacement. The housing units
7shall be suitable to the needs of these displaced persons or families
8and shall be decent, safe, sanitary, and otherwise standard
9dwellings.

10

begin delete53399.7.end delete
11begin insert53369.7.end insert  

Any action or proceeding to attack, review, set aside,
12void, or annul the creation of a district, adoption of an infrastructure
13financing plan, including a division of taxes thereunder, or an
14election pursuant to this chapter shall be commenced within 30
15days after the enactment of the ordinance creating the district
16pursuant to Sectionbegin delete 53399.23.end deletebegin insert 53369.23.end insert Consistent with the time
17limitations of this section, such an action or proceeding with respect
18to a division of taxes under this chapter may be brought pursuant
19to Chapter 9 (commencing with Section 860) of Title 10 of Part 2
20of the Code of Civil Procedure, except that Section 869 of the
21Code of Civil Procedure shall not apply.

22

begin delete53399.8.end delete
23begin insert53369.8.end insert  

An action to determine the validity of the issuance
24of bonds pursuant to this chapter may be brought pursuant to
25Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
26the Code of Civil Procedure. However, notwithstanding the time
27limits specified in Section 860 of the Code of Civil Procedure, the
28action shall be commenced within 30 days after adoption of the
29resolution pursuant to Sectionbegin delete 53399.44end deletebegin insert 53369.44end insert providing for
30issuance of the bonds if the action is brought by an interested
31person pursuant to Section 863 of the Code of Civil Procedure.
32Any appeal from a judgment in that action or proceeding shall be
33commenced within 30 days after entry of judgment.

34 

35Article 2.  Preparation and Adoption of Infrastructure
36Revitalization Financing District Plans
37

 

38

begin delete53399.10.end delete
39begin insert53369.10.end insert  

A legislative body of a city may designate one or
40more proposed infrastructure revitalization financing districts
P10   1pursuant to this chapter. Proceedings for the establishment of a
2district shall be instituted by the adoption of a resolution of
3intention to establish the proposed district and shall do all of the
4following:

5(a) State that an infrastructure revitalization financing district
6is proposed to be established under the terms of this chapter and
7describe the boundaries of the proposed district and any project
8area proposed within the district, which may be accomplished by
9reference to a map on file in the office of the clerk of the city.

10(b) State the type of facilities proposed to be financed by the
11district. The district may only finance facilities authorized by
12Sectionbegin delete 53399.3.end deletebegin insert 53369.3.end insert

13(c) State that incremental property tax revenue from the city
14and some or all affected taxing entities within the district may be
15used to finance these facilities.

16(d) State that net available revenue from the city may be used
17 to finance these facilities and state the maximum portion of the
18net available revenue to be committed to the district for each year
19during which the district will receive these revenues.

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

21

begin delete53399.11.end delete
22begin insert53369.11.end insert  

The legislative body shallbegin delete direct the clerk to mailend delete
23begin insert causeend insert a copy of the resolution of intention to create the district to
24begin insert be mailed toend insert each owner of land within the district.

25

begin delete53399.12.end delete
26begin insert53369.12.end insert  

The legislative body shallbegin delete direct the clerk to mailend delete
27begin insert causeend insert a copy of the resolution tobegin insert be mailed toend insert each affected taxing
28entity.

29

begin delete53399.13.end delete
30begin insert53369.13.end insert  

After adopting the resolution pursuant to Section
31begin delete 53399.10,end deletebegin insert 53369.10,end insert the legislative body shall designate and direct
32the city engineer or other appropriate official to prepare an
33infrastructure plan pursuant to Sectionbegin delete 53399.14.end deletebegin insert 53369.14.end insert

34

begin delete53399.14.end delete
35begin insert53369.14.end insert  

After receipt of a copy of the resolution of intention
36to establish a district, the official designated pursuant to Section
37begin delete 53399.13end deletebegin insert 53369.13end insert shall prepare a proposed infrastructure
38financing plan. The infrastructure financing plan shall be consistent
39with the general plan of the city within which the district is located
40and shall include all of the following:

P11   1(a) A map and legal description of the proposed district, which
2may include all or a portion of the district designated by the
3legislative body in its resolution of intention.

4(b) A description of the facilities required to serve the
5development proposed in the area of the district including those
6to be provided by the private sector, those to be provided by
7governmental entities without assistance under this chapter, those
8improvements and facilities to be financed with assistance from
9the proposed district, and those to be provided jointly. The
10description shall include the proposed location, timing, and costs
11of the improvements and facilities.

12(c) A finding that the facilities are of communitywide
13significance.

14(d) A financing section, which shall contain all of the following
15information:

16(1) A specification of the maximum portion of the incremental
17tax revenue of the city and of each affected taxing entity proposed
18to be committed to the district for each year during which the
19district will receive incremental tax revenue. The portion need not
20be the same for all affected taxing entities. The portion may change
21 over time.

22(2) A projection of the amount of tax revenues expected to be
23received by the district in each year during which the district will
24receive tax revenues, including an estimate of the amount of tax
25revenues attributable to each affected taxing entity proposed to be
26committed to the district for each year. If applicable, the plan shall
27also include a specification of the maximum portion of the net
28available revenue of the city proposed to be committed to the
29district for each year during which the district will receive revenue.
30The portion may vary over time.

31(3) A plan for financing the facilities to be assisted by the
32district, including a detailed description of any intention to incur
33debt.

34(4) A limit on the total number of dollars of taxes that may be
35allocated to the district pursuant to the plan.

36(5) A date on which the district shall cease to exist, by which
37time all tax allocation, including any allocation of net available
38revenue, to the district will end. The date shall not be more than
3940 years from the date on which the ordinance forming the district
40is adopted pursuant to Sectionbegin delete 53399.23,end deletebegin insert 53369.23,end insert or a later date,
P12   1if specified by the ordinance, on which the allocation of tax
2increment will begin. The district may issue debt with a final
3maturity date of up to 30 years from the date of issuance of each
4debt issue, subject to the time limit on tax allocation to the district.

5(6) An analysis of the costs to the city of providing facilities
6and services to the area of the district while the area is being
7developed and after the area is developed. The plan shall also
8include an analysis of the tax, fee, charge, and other revenues
9expected to be received by the city as a result of expected
10development in the area of the district.

11(7) An analysis of the projected fiscal impact of the district and
12the associated development upon each affected taxing entity that
13is proposed to participate in financing the district.

14(8) A plan for financing any potential costs that may be incurred
15by reimbursing a developer of a project that is both located entirely
16within the boundaries of that district and qualifies for the Transit
17Priority Project Program, pursuant to Section 65470, including
18any permit and affordable housing expenses related to the project.

19(e) If any dwelling units occupied by persons or families of low
20or moderate income are proposed to be removed or destroyed in
21the course of private development or facilities construction within
22the area of the district, a plan providing for replacement of those
23units and relocation of those persons or families consistent with
24the requirements of Sectionbegin delete 53399.6.end deletebegin insert 53369.6.end insert

25

begin delete53399.15.end delete
26begin insert53369.15.end insert  

The infrastructure financing plan shall be sent to
27each owner of land within the proposed district and to each affected
28taxing entity together with any report required by the California
29Environmental Quality Act (Division 13 (commencing with Section
3021000) of the Public Resources Code) that pertains to the proposed
31facilities or the proposed development project for which the
32facilities are needed, and shall be made available for public
33inspection. The report shall also be sent to the planning commission
34and the legislative body.

35

begin delete53399.16.end delete
36begin insert53369.16.end insert  

The designated official shall consult with each
37affected taxing entity, and, at the request of any affected taxing
38entity, shall meet with representatives of an affected taxing entity.
39Any affected taxing entity may suggest revisions to the plan.

P13   1

begin delete53399.17.end delete
2begin insert53369.17.end insert  

The legislative body shall conduct a public hearing
3prior to adopting the proposed infrastructure financing plan. The
4public hearing shall be called no sooner than 60 days after the plan
5has been sent to each affected taxing entity. In addition to the
6notice given to landowners and affected taxing entities pursuant
7to Sectionsbegin delete 53399.11end deletebegin insert 53369.11end insert andbegin delete 53399.12,end deletebegin insert 53369.12,end insert notice of
8the public hearing shall be given by publication not less than once
9a week for four successive weeks in a newspaper of general
10circulation published in the city in which the proposed district is
11located. The notice shall state that the district will be used to
12finance public works, briefly describe the public works, briefly
13describe the proposed financial arrangements, including the
14proposed commitment of incremental tax revenue, describe the
15boundaries of the proposed district and state the day, hour, and
16place when and where any persons having any objections to the
17proposed infrastructure financing plan, or the regularity of any of
18the prior proceedings, may appear before the legislative body and
19object to the adoption of the proposed plan by the legislative body.

20

begin delete53399.18.end delete
21begin insert53369.18.end insert  

At the hour set in the required notices, the legislative
22body shall proceed to hear and pass upon all written and oral
23objections. The hearing may be continued from time to time. The
24legislative body shall consider the recommendations, if any, of
25affected taxing entities, and all evidence and testimony for and
26against the adoption of the plan. The legislative body may modify
27the plan by eliminating or reducing the size and cost of proposed
28public works, by reducing the amount of proposed debt, or by
29reducing the portion, amount, or duration of incremental tax
30revenues to be committed to the district.

31

begin delete53399.19.end delete
32begin insert53369.19.end insert  

(a) The legislative body shall not enact a resolution
33proposing formation of a district and providing for the division of
34taxes of any affected taxing entity pursuant to Article 3
35(commencing with Sectionbegin delete 53399.30)end deletebegin insert 53369.30),end insert unless a
36resolution approving the plan has been adopted by the governing
37body of each affected taxing entity which is proposed to be subject
38to division of taxes pursuant to Article 3 (commencing with Section
39begin delete 53399.30)end deletebegin insert 53369.30)end insert has been filed with the legislative body at or
40prior to the time of the hearing.

P14   1(b) In the case of an affected taxing entity that is a special district
2that provides fire protection services and where the county board
3of supervisors is the governing authority or has appointed itself as
4the governing board of the district, the plan shall be adopted by a
5separate resolution approved by the district’s governing authority
6or governing board.

7(c) This section shallbegin insert notend insert be construed to prevent the legislative
8body from amending its infrastructure financing plan and adopting
9a resolution proposing formation of the infrastructure revitalization
10financing district without allocation of the tax revenues of any
11affected taxing entity which has not approved the infrastructure
12financing plan by resolution of the governing body of the affected
13taxing entity.

14

begin delete53399.20.end delete
15begin insert53369.20.end insert  

(a) At the conclusion of the hearing, the legislative
16body may adopt a resolution proposing adoption of the
17infrastructure financing plan, as modified, and formation of the
18infrastructure revitalization financing district in a manner consistent
19with Sectionbegin delete 53399.19,end deletebegin insert 53369.19,end insert or it may abandon the
20proceedings. If the legislative body adopts a resolution proposing
21formation of the district, it shall then submit the proposal to create
22the district to the qualified electors of the proposed district in the
23next general election or in a special election to be held,
24notwithstanding any other requirement, including any requirement
25that elections be held on specified dates, contained in the Elections
26Code, at least 90 days, but not more than 180 days, following the
27adoption of the resolution of formation. The legislative body shall
28provide the resolution of formation, a certified map of sufficient
29scale and clarity to show the boundaries of the district, and a
30sufficient description to allow the election official to determine
31the boundaries of the district to the official conducting the election
32within three business days after the adoption of the resolution of
33formation. The assessor’s parcel numbers for the land within the
34district shall be included if it is a landowner election or the district
35does not conform to an existing district’s boundaries and if
36requested by the official conducting the election. If the election is
37to be held less than 125 days following the adoption of the
38resolution of formation, the concurrence of the election official
39conducting the election shall be required. However, any time limit
40specified by this section or requirement pertaining to the conduct
P15   1of the election may be waived with the unanimous consent of the
2qualified electors of the proposed district and the concurrence of
3the election official conducting the election.

4(b) If at least 12 persons have been registered to vote within the
5territory of the proposed district for each of the 90 days preceding
6the close of the hearing, the vote shall be by the registered voters
7of the proposed district, who need not necessarily be the same
8persons, with each voter having one vote. Otherwise, the vote shall
9be by the landowners of the proposed district and each landowner
10who is the owner of record at the close of the protest hearing, or
11the authorized representative thereof, shall have one vote for each
12acre or portion of an acre of land that he or she owns within the
13proposed district. The number of votes to be voted by a particular
14landowner shall be specified on the ballot provided to that
15landowner.

16(c) Ballots for the special election authorized by subdivision (a)
17may be distributed to qualified electors by mail with return postage
18prepaid or by personal service by the election official. The official
19conducting the election may certify the proper mailing of ballots
20by an affidavit, which shall be exclusive proof of mailing in the
21absence of fraud. The voted ballots shall be returned to the election
22officer conducting the election not later than the hour specified in
23the resolution calling the election. However, if all the qualified
24voters have voted, the election shall be closed.

25

begin delete53399.21.end delete
26begin insert53369.21.end insert  

(a) Except as otherwise provided in this chapter,
27laws regulating elections of the local agency that calls an election
28pursuant to this chapter, insofar as they may be applicable, shall
29govern all elections conducted pursuant to this chapter. Except as
30provided in subdivision (b), there shall be prepared and included
31in the ballot material provided to each voter, an impartial analysis
32pursuant to Section 9160 or 9280 of the Elections Code, arguments
33and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive,
34and 9190 of the Elections Code or pursuant to Sections 9281 to
359287, inclusive, and 9295 of the Elections Code.

36(b) If the vote is to be by the landowners of the proposed district,
37analysis and arguments may be waived with the unanimous consent
38of all the landowners and shall be so stated in the order for the
39election.

P16   1

begin delete53399.22.end delete
2begin insert53369.22.end insert  

(a) If the election is to be conducted by mail ballot,
3the election official conducting the election shall provide ballots
4and election materials pursuant to subdivision (d) of Section 53326
5and Section 53327, together with all supplies and instructions
6necessary for the use and return of the ballot.

7(b) The identification envelope for return of mail ballots used
8in landowner elections shall contain the following:

9(1) The name of the landowner.

10(2) The address of the landowner.

11(3) A declaration, under penalty of perjury, stating that the voter
12is the owner of record or the authorized representative of the
13landowner entitled to vote and is the person whose name appears
14on the identification envelope.

15(4) The printed name and signature of the voter.

16(5) The address of the voter.

17(6) The date of signing and place of execution of the declaration
18pursuant to paragraph (3).

19(7) A notice that the envelope contains an official ballot and is
20to be opened only by the canvassing board.

21

begin delete53399.23.end delete
22begin insert53369.23.end insert  

After the canvass of returns of any election pursuant
23to Sectionbegin delete 53399.20,end deletebegin insert 53369.20,end insert the legislative body may, by
24ordinance, adopt the infrastructure financing plan and create the
25district with full force and effect of law, if two-thirds of the votes
26upon the question of creating the district are in favor of creating
27the district.

28

begin delete53399.24.end delete
29begin insert53369.24.end insert  

After the canvass of returns of any election
30conducted pursuant to Sectionbegin delete 53399.20,end deletebegin insert 53369.20,end insert the legislative
31body shall take no further action with respect to the proposed
32infrastructure revitalization financing district for one year from
33the date of the election if the question of creating the district fails
34to receive approval of two-thirds of the votes cast upon the
35question.

36

begin delete53399.25.end delete
37begin insert53369.25.end insert  

The legislative body may submit a proposition to
38establish or change the appropriations limit, as defined by
39subdivision (h) of Section 8 of Article XIII   B of the California
40Constitution, of a district to the qualified electors of a proposed
P17   1or established district. The proposition establishing or changing
2the appropriations limit shall become effective if approved by the
3qualified electors voting on the proposition and shall be adjusted
4for changes in the cost of living and changes in populations, as
5defined by subdivisions (b) and (c) of Section 7901, except that
6the change in population may be estimated by the legislative body
7in the absence of an estimate by the Department of Finance, and
8in accordance with Section 1 of Article XIII   B of the California
9Constitution. For purposes of adjusting for changes in population,
10the population of the district shall be deemed to be at least one
11person during each calendar year. Any election held pursuant to
12this section may be combined with any election held pursuant to
13Sectionbegin delete 53395.20end deletebegin insert 53369.20end insert in any convenient manner.

14

begin delete53399.26.end delete
15begin insert53369.26.end insert  

No later than June 30 of each year after the adoption
16of an infrastructure financing plan, the legislative body shall post
17an annual report in an easily identifiable and accessible location
18on the legislative body’s Internet Web site. The annual report shall
19contain all of the following:

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

21(b) A description of the progress made toward the district’s
22adopted goals.

23(c) An assessment of the status regarding completion of the
24district’s projects.

25 

26Article 3.  Division of Taxes
27

 

28

begin delete53399.30.end delete
29begin insert53369.30.end insert  

Any infrastructure financing plan may contain a
30provision that taxes, if any, levied upon taxable property in the
31area included within the infrastructure revitalization financing
32district each year by or for the benefit of the State of California,
33or any affected taxing entity after the effective date of the ordinance
34adopted pursuant to Sectionbegin delete 53399.23end deletebegin insert 53369.23end insert to create the
35district, shall be divided as follows:

36(a) That portion of the taxes which would be produced by the
37rate upon which the tax is levied each year by or for each of the
38affected taxing entities upon the total sum of the assessed value
39of the taxable property in the district as shown upon the assessment
40roll used in connection with the taxation of the property by the
P18   1affected taxing entity, last equalized prior to the effective date of
2the ordinance adopted pursuant to Sectionbegin delete 53399.23end deletebegin insert 53369.23end insert to
3create the district, shall be allocated to, and when collected shall
4be paid to, the respective affected taxing entities as taxes by or for
5the affected taxing entities on all other property are paid.

6(b) That portion of the levied taxes each year specified in the
7adopted infrastructure financing plan for the city and each affected
8taxing entity which has agreed to participate pursuant to Section
9begin delete 53399.19end deletebegin insert 53369.19end insert in excess of the amount specified in subdivision
10(a) shall be allocated to, and when collected shall be paid into a
11special fund of, the district for all lawful purposes of the district.
12Unless and until the total assessed valuation of the taxable property
13in a district exceeds the total assessed value of the taxable property
14in the district as shown by the last equalized assessment roll
15referred to in subdivision (a), all of the taxes levied and collected
16upon the taxable property in the district shall be paid to the
17respective affected taxing entities. When the district ceases to exist
18pursuant to the adopted infrastructure financing plan, all moneys
19thereafter received from taxes upon the taxable property in the
20district shall be paid to the respective affected taxing entities as
21taxes on all other property are paid.

22

begin delete53399.31.end delete
23begin insert53369.31.end insert  

All costs incurred by a county in connection with
24the division of taxes pursuant to Sectionbegin delete 53399.30end deletebegin insert 53369.30end insert for a
25district shall be paid by that district.

26 

27Article 4.  Tax Increment Bonds
28

 

29

begin delete53399.40.end delete
30begin insert53369.40.end insert  

The legislative body may, by majority vote, initiate
31proceedings to issue bonds pursuant to this chapter by adopting a
32resolution stating its intent to issue the bonds.

33

begin delete53399.41.end delete
34begin insert53369.41.end insert  

The resolution adopted pursuant to Sectionbegin delete 53399.40end delete
35begin insert 53369.40end insert shall contain all of the following information:

36(a) A description of the facilities to be financed with the
37proceeds of the proposed bond issue.

38(b) The estimated cost of the facilities, the estimated cost of
39preparing and issuing the bonds, and the principal amount of the
40proposed bond issuance.

P19   1(c) The maximum interest rate and discount on the proposed
2bond issuance.

3(d) The date of the election on the proposed bond issuance and
4the manner of holding the election.

5(e) A determination of the amount of tax revenue available or
6estimated to be available, for the payment of the principal of, and
7interest on, the bonds.

8(f) A finding that the amount necessary to pay the principal of,
9and interest on, the proposed bond issuance will be less than, or
10equal to, the amount determined pursuant to subdivision (e).

11

begin delete53399.42.end delete
12begin insert53369.42.end insert  

The clerk of the legislative body shall publish the
13resolution adopted pursuant to Sectionbegin delete 53399.40end deletebegin insert 53369.40end insert once a
14day for at least seven successive days in a newspaper published
15in the city or county at least six days a week, or at least once a
16week for two successive weeks in a newspaper published in the
17city or county less than six days a week.

18If there are no newspapers meeting these criteria, the resolution
19shall be posted in three public places within the territory of the
20district for two succeeding weeks.

21

begin delete53399.43.end delete
22begin insert53369.43.end insert  

The legislative body shall submit the proposal to
23issue the bonds to the voters who reside within the district. The
24election shall be conducted in the same manner as the election to
25create the district pursuant to Sectionbegin delete 53399.20end deletebegin insert 53369.20end insert and the
26two elections may be consolidated.

27

begin delete53399.44.end delete
28begin insert53369.44.end insert  

(a) Bonds may be issued only if two-thirds of the
29voters voting on the proposition vote in favor of authorizing the
30issuance of the bonds.

31(b) If the voters authorize the issuance of the bonds as provided
32by subdivision (a), the legislative body may subsequently proceed
33with the issuance of the bonds by adopting a resolution which shall
34provide for all of the following:

35(1) The issuance of the bonds in one or more series.

36(2) The principal amount of the bonds, which shall be consistent
37with the amount specified in subdivision (b) of Sectionbegin delete 53399.41.end delete
38begin insert 53369.41.end insert

39(3) The date the bonds will bear.

40(4) The date of maturity of the bonds.

P20   1(5) The denomination of the bonds.

2(6) The form of the bonds.

3(7) The manner of execution of the bonds.

4(8) The medium of payment in which the bonds are payable.

5(9) The place or manner of payment and any requirements for
6registration of the bonds.

7(10) The terms of call or redemption, with or without premium.

8

begin delete53399.45.end delete
9begin insert53369.45.end insert  

If any proposition submitted to the voters pursuant
10to this chapter is defeated by the voters, the legislative body shall
11not submit, or cause to be submitted, a similar proposition to the
12voters for at least one year after the first election.

13

begin delete53399.46.end delete
14begin insert53369.46.end insert  

The legislative body may, by majority vote, provide
15for refunding of bonds issued pursuant to this chapter. However,
16refunding bonds shall not be issued if the total net interest cost to
17maturity on the refunding bonds plus the principal amount of the
18refunding bonds exceeds the total net interest cost to maturity on
19the bonds to be refunded. The legislative body may not extend the
20time to maturity of the bonds.

21

begin delete53399.47.end delete
22begin insert53369.47.end insert  

The legislative body or any person executing the
23bonds shall not be personally liable on the bonds by reason of their
24issuance. The bonds and other obligations of a district issued
25pursuant to this chapter are not a debt of the city, county, or state
26or of any of its political subdivisions, other than the district, and
27none of those entities, other than the district, shall be liable on the
28bonds and the bonds or obligations shall be payable exclusively
29from funds or properties of the district. The bonds shall contain a
30statement to this effect on their face. The bonds do not constitute
31an indebtedness within the meaning of any constitutional or
32statutory debt limitation.

33

begin delete53399.48.end delete
34begin insert53369.48.end insert  

(a) The bonds may be sold at discount not to exceed
355 percent of par at a negotiated or public sale. At least five days
36prior to a public sale, notice shall be published, pursuant to Section
376061, in a newspaper of general circulation and in a financial
38newspaper published in the City and County of San Francisco and
39in the City of Los Angeles. The bonds may be sold at not less than
P21   1par to the federal government at private sale without any public
2advertisement.

3(b) Any negotiated sale of bonds pursuant to this section shall
4be limited to bond issuances of an infrastructure and revitalization
5financing district that do not exceed five million dollars
6 ($5,000,000).

7

begin delete53399.49.end delete
8begin insert53369.49.end insert  

If any member of the legislative body whose
9signature appears on bonds ceases to be a member of the legislative
10body before delivery of the bonds, his or her signature is as
11effective as if he or she had remained in office. Bonds issued
12pursuant to this chapter are fully negotiable.

13

SEC. 2.  

Section 33459 of the Health and Safety Code is
14amended to read:

15

33459.  

For purposes of this article, the following terms shall
16have the following meanings:

17(a) “Department” means the Department of Toxic Substances
18Control.

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

20(c) “Hazardous substance” means any hazardous substance as
21defined in subdivision (h) of Section 25281, and any reference to
22hazardous substance in the definitions referenced in this section
23shall be deemed to refer to hazardous substance, as defined in this
24subdivision.

25(d) “Local agency” means a single local agency that is one of
26the following:

27(1) A local agency authorized pursuant to Section 25283 to
28implement Chapter 6.7 (commencing with Section 25280) of, and
29Chapter 6.75 (commencing with Section 25299.10) of, Division
3020.

31(2) A local officer who is authorized pursuant to Section 101087
32to supervise a remedial action.

33(3) An infrastructure and revitalization financing district.

34(e) “Qualified independent contractor” means an independent
35contractor who is any of the following:

36(1) An engineering geologist who is certified pursuant to Section
377842 of the Business and Professions Code.

38(2) A geologist who is registered pursuant to Section 7850 of
39the Business and Professions Code.

P22   1(3) A civil engineer who is registered pursuant to Section 6762
2of the Business and Professions Code.

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

4(g) “Remedy” or “remove” means any action to assess, evaluate,
5investigate, monitor, remove, correct, clean up, or abate a release
6of a hazardous substance or to develop plans for those actions.
7“Remedy” includes any action set forth in Section 25322 and
8“remove” includes any action set forth in Section 25323.

9(h) “Responsible party” means any person described in
10subdivision (a) of Section 25323.5 of this code or subdivision (a)
11of Section 13304 of the Water Code.



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