Amended in Senate June 18, 2013

Amended in Senate June 5, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 243


Introduced by Assembly Member Dickinson

(Principal coauthors: Assembly Members Atkins, Bonta, and John A. Pérez)

February 6, 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 243, as amended, Dickinson. 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.

This bill would authorize the creation of an infrastructure and revitalization financing district, as defined, and the issuance of debt with 55% 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 provide that the formation of the district and the issuance of debt by such a district on land of a former military base that is publicly owned is not subject to voter approval, as specified.

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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Chapter 2.10 (commencing with Section 53399)
2is added to Part 1 of Division 2 of Title 5 of the Government Code,
3to read:

 

P3    1Chapter  2.10. Infrastructure and Revitalization
2Financing Districts
3

3 

4Article 1.  General Provisions
5

 

6

53399.  

It is the intent of the Legislature in enacting this chapter
7to establish a long-term permanent program that provides local
8governments with tools and resources for specified purposes,
9including, but not limited to, public infrastructure, affordable
10housing, economic development and job creation, and
11environmental protection and remediation, in a manner that
12encourages local cooperation and includes appropriate protections
13for state and local taxpayers.

14

53399.1.  

Unless the context otherwise requires, the definitions
15contained in this article shall govern the construction of this
16chapter.

17(a) “Affected taxing entity” means any governmental taxing
18agency that levied or had levied on its behalf a property tax on all
19or a portion of the property located in the proposed district in the
20fiscal year prior to the designation of the district, but not including
21any county office of education, school district, or community
22college district.

23(b) “City” means a city, a county, or a city and county.

24(c) “Debt” means any binding obligation to repay a sum of
25 moneys, including obligations in the form of bonds, certificates
26of participation, long-term leases, loans from government agencies,
27or loans from banks, other financial institutions, private businesses,
28or individuals.

29(d) “Designated official” means the city engineer or other
30appropriate official designated pursuant to Section 53399.13.

31(e) (1) “District” means an infrastructure and revitalization
32financing district.

33(2) An infrastructure and revitalization financing district is a
34“district” within the meaning of Section 1 of Article XIII A of the
35California Constitution.

36(f) “Infrastructure and revitalization financing district” means
37a legally constituted governmental entity established pursuant to
38this chapter for the sole purpose of financing facilities authorized
39by this chapter.

P4    1(g) “Landowner” or “owner of land” means any person shown
2as the owner of land on the last equalized assessment roll or
3otherwise known to be the owner of the land by the legislative
4body. The legislative body shall not have any obligation to obtain
5other information as to the ownership of land, and its determination
6of ownership shall be final and conclusive for the purposes of this
7chapter. A public agency is not a landowner or owner of land for
8purposes of this chapter, unless the public agency owns all of the
9land to be included within the proposed district.

10(h) “Legislative body” means the city council or board of
11supervisors.

12(i) “Project area” means a defined area within a district in which
13the activities of the district share a common purpose or goal and
14an overall financing plan.

15(j) “Public works” means public facilities or any other facilities
16described in Section 53399.3 that are to be financed in whole or
17in part by the district.

18(k) “Net available revenue” means periodic distributions to the
19city from the Redevelopment Property Tax Trust Fund, created
20pursuant to Section 34170.5 of the Health and Safety Code, that
21are available to the city after all preexisting legal commitments
22and statutory obligations funded from that revenue are made
23pursuant to Part 1.85 (commencing with Section 34170) of Division
2424 of the Health and Safety Code. Net available revenue shall
25include only revenue remaining after all current distributions,
26including, but not limited to, payment of enforceable obligations,
27all distributions to other taxing entities, and applicable
28administrative fees, have been made.

29

53399.2.  

(a) The revenues available pursuant to Article 3
30(commencing with Section 53399.30) may be used directly for
31work allowed pursuant to Section 53399.3, may be accumulated
32for a period not to exceed five years to provide a fund for that
33work, may be pledged to pay the principal of, and interest on,
34bonds issued pursuant to Article 4 (commencing with Section
3553399.40), or may be pledged to pay the principal of, and interest
36on, bonds issued pursuant to the Improvement Bond Act of 1915
37(Division 10 (commencing with Section 8500) of the Streets and
38Highways Code) or the Mello-Roos Community Facilities Act of
391982 (Chapter 2.5 (commencing with Section 53311)), the proceeds
40of which have been or will be used entirely for allowable purposes
P5    1of the district. The revenue of the district may also be advanced
2for allowable purposes of the district to an Integrated Financing
3District established pursuant to Chapter 1.5 (commencing with
4Section 53175), in which case the district may be party to a
5reimbursement agreement established pursuant to that chapter.
6The revenues of the district may also be committed to paying for
7any completed facility acquired pursuant to Section 53399.3 over
8a period of time, including the payment of a rate of interest not to
9exceed the bond buyer index rate on the day that the agreement to
10repay is entered into by the city.

11(b) The legislative body may enter into an agreement with any
12affected taxing entity providing for the construction of, or
13assistance in, financing facilities.

14

53399.3.  

(a) A district may finance (1) the purchase,
15construction, expansion, improvement, seismic retrofit, or
16rehabilitation of any real or other tangible property with an
17estimated useful life of 15 years or longer which satisfies the
18requirements of subdivision (b), (2) may finance planning and
19design work which is directly related to the purchase, construction,
20expansion, improvement, rehabilitation, or seismic retrofit of that
21property, and (3) the costs described in Sections 53399.6 and
2253399.31. The facilities need not be physically located within the
23boundaries of the district. A district may not finance routine
24maintenance, repair work, or the costs of ongoing operation or
25providing services of any kind.

26(b) The district shall finance only facilities or projects of
27communitywide significance, including, but not limited to, any of
28the following:

29(1) Highways, interchanges, ramps and bridges, arterial streets,
30parking facilities, and transit facilities.

31(2) Sewage treatment and water reclamation plants and
32interceptor pipes.

33(3) Facilities and watershed lands used for the collection and
34treatment of water for urban uses.

35(4) Flood management, including levees, bypasses, dams,
36retention basins, and drainage channels.

37(5) Child care facilities.

38(6) Libraries.

39(7) Parks, recreational facilities, open space, and habitat
40restoration.

P6    1(8) Facilities for the transfer and disposal of solid waste,
2including transfer stations and vehicles.

3(9) Brownfields restoration and other environmental mitigation.

4(10) Purchase of land and property for development purposes
5and related site improvements.

6(11) Acquisition, construction, or repair of housing for rental
7or purchase, including multipurpose facilities.

8(12) Acquisition, construction, or repair of commercial or
9industrial structures for private use.

10(13) The repayment of the transfer of funds to a military base
11reuse authority pursuant to Section 67851.

12(c) Any district that constructs dwelling units shall set aside not
13less than 20 percent of those units to increase and improve the
14community’s supply of low- and moderate-income housing
15available at an affordable housing cost, as defined by Section
1650052.5 of the Health and Safety Code, or at an affordable rent,
17as defined by Section 50053 of the Health and Safety Code, to
18persons and families of low and moderate income, as defined in
19Section 50093 of the Health and Safety Code.

20(d) A district may utilize any powers under the Polanco
21Redevelopment Act (Article 12.5 (commencing with Section
2233459) of Chapter 4 of Part 1 of Division 24 of the Health and
23Safety Code), and finance any action necessary to implement that
24act.

25(e) A district may finance any project that implements a
26sustainable communities strategy prepared pursuant to Section
2765080.

28

53399.4.  

(a) A city may form a district to finance a project or
29projects on a former military base pursuant to the requirements set
30forth in this chapter.

31(b) A district formed under this section may finance a project
32pursuant to this section or Section 53399.3 only if the project is
33consistent with the authority reuse plan and is approved by the
34military base reuse authority, if applicable.

35(c) Notwithstanding Sections 53399.20, 53399.21, 53399.22,
3653399.23, and 53399.44, the following actions shall not be subject
37to voter approval in the case of a district formed under this section:

38(1) The formation of the district, provided that, at the time of
39approval of the formation of the district, all of the land within the
40proposed district is owned by one or more public entities, military
P7    1base reuse authorities, or entities controlled by governmental
2agencies.

3(2) The authorization to issue debt and the issuance of debt by
4a district formed under this section to finance facilities described
5in the infrastructure financing plan, provided that, at the time of
6approval of the formation of the district, all of the land within the
7proposed district, or a designated project area within the district
8on which the facilities to be financed with the bonds will be located
9is owned by one or more public entities, military base reuse
10authorities, or entities controlled by governmental agencies. The
11bonds authorized by this paragraph may be issued in one or more
12series upon the adoption by the district of the resolution described
13 in subdivision (b) of Section 53399.44.

14

53399.5.  

(a) A district may finance only the facilities or
15services authorized in this chapter. The additional facilities or
16services may not supplant facilities or services already available
17within that territory when the district was created, except if those
18facilities or services are essentially nonfunctional, obsolete,
19hazardous, or in need of upgrading or rehabilitation. The additional
20facilities or services may supplement those facilities and services
21as needed to serve new developments.

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

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

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

37(e) The legislative body of the city forming the district may
38choose to dedicate any portion of its net available revenue to the
39district through the financing plan described in Section 53399.14.

P8    1

53399.6.  

It is the intent of the Legislature that the establishment
2of a district should not ordinarily lead to the removal of existing
3functional, habitable, and safe dwelling units. If, however, any
4dwelling units are proposed to be removed or destroyed in the
5course of private development or facilities construction within the
6area of the district, the legislative body shall do all of the following:

7(a) Within four years of the removal or destruction, cause or
8require the construction or rehabilitation, for rental or sale to
9persons or families of low or moderate income, of an equal number
10of replacement dwelling units at affordable housing cost, as defined
11in Section 50052.5 of the Health and Safety Code, or affordable
12rent, as defined in Section 50053 of the Health and Safety Code,
13within the territory of the district if the dwelling units removed
14were inhabited by persons or families of low or moderate income,
15as defined in Section 50093 of the Health and Safety Code.

16(b) Within four years of the removal or destruction, cause or
17require the construction or rehabilitation, for rental or sale to
18persons of low or moderate income, a number of dwelling units
19which is at least one unit but not less than 20 percent of the total
20dwelling units removed at affordable housing cost, as defined in
21Section 50052.5 of the Health and Safety Code, or affordable rent,
22as defined in Section 50053 of the Health and Safety Code, within
23the territory of the district if the dwelling units removed or
24destroyed were not inhabited by persons of low or moderate
25income, as defined in Section 50093 of the Health and Safety Code.

26(c) In the case of dwelling units located on a former military
27base that are destroyed or removed in connection with a base reuse
28plan, replacement dwelling units required by subdivision (a) or
29(b) may be located anywhere within the territory of the former
30military base consistent with the base reuse plan, local general
31plan, and infrastructure financing plan, as applicable.

32(d) Provide relocation assistance and make all the payments
33required by Chapter 16 (commencing with Section 7260) of
34Division 7 of Title 1, to persons displaced by any public or private
35development occurring within the territory of the district. This
36displacement shall be deemed to be the result of public action.

37(e) Ensure that removal or destruction of any dwelling units
38occupied by persons or families of low or moderate income not
39take place unless and until there are suitable housing units, at
40 comparable cost to the units from which the persons or families
P9    1were displaced, available and ready for occupancy by the residents
2of the units at the time of their displacement. The housing units
3shall be suitable to the needs of these displaced persons or families
4and shall be decent, safe, sanitary, and otherwise standard
5dwellings.

6

53399.7.  

Any action or proceeding to attack, review, set aside,
7void, or annul the creation of a district, adoption of an infrastructure
8financing plan, including a division of taxes thereunder, or an
9election pursuant to this chapter shall be commenced within 30
10days after the enactment of the ordinance creating the district
11pursuant to Section 53399.23. Consistent with the time limitations
12of this section, such an action or proceeding with respect to a
13division of taxes under this chapter may be brought pursuant to
14Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
15the Code of Civil Procedure, except that Section 869 of the Code
16of Civil Procedure shall not apply.

17

53399.8.  

An action to determine the validity of the issuance
18of bonds pursuant to this chapter may be brought pursuant to
19Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
20the Code of Civil Procedure. However, notwithstanding the time
21limits specified in Section 860 of the Code of Civil Procedure, the
22action shall be commenced within 30 days after adoption of the
23resolution pursuant to Section 53399.44 providing for issuance of
24the bonds if the action is brought by an interested person pursuant
25to Section 863 of the Code of Civil Procedure. Any appeal from
26a judgment in that action or proceeding shall be commenced within
2730 days after entry of judgment.

28 

29Article 2.  Preparation and Adoption of Infrastructure
30begin delete andRevitalizationend deletebegin insert and Revitalizationend insert Financing District Plans
31

 

32

53399.10.  

A legislative body of a city may designate one or
33more proposed infrastructure and revitalization financing districts
34pursuant to this chapter. Proceedings for the establishment of a
35district shall be instituted by the adoption of a resolution of
36intention to establish the proposed district and shall do all of the
37following:

38(a) State that an infrastructure and revitalization financing
39district is proposed to be established under the terms of this chapter
40and describe the boundaries of the proposed district and any project
P10   1area proposed within the district, which may be accomplished by
2reference to a map on file in the office of the clerk of the city.

3(b) State the type of facilities proposed to be financed by the
4district. The district may only finance facilities authorized by
5Section 53399.3.

6(c) State that incremental property tax revenue from the city
7and some or all affected taxing entities within the district may be
8used to finance these facilities.

9(d) State that net available revenue from the city may be used
10to finance these facilities and state the maximum portion of the
11net available revenue to be committed to the district for each year
12during which the district will receive these revenues.

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

14

53399.11.  

The legislative body shall cause a copy of the
15resolution of intention to create the district to be mailed to each
16owner of land within the district.

17

53399.12.  

The legislative body shall cause a copy of the
18resolution to be mailed to each affected taxing entity.

19

53399.13.  

After adopting the resolution pursuant to Section
2053399.10, the legislative body shall designate and direct the city
21engineer or other appropriate official to prepare an infrastructure
22plan pursuant to Section 53399.14.

23

53399.14.  

After receipt of a copy of the resolution of intention
24to establish a district, the official designated pursuant to Section
2553399.13 shall prepare a proposed infrastructure financing plan.
26The infrastructure financing plan shall be consistent with the
27general plan of the city within which the district is located and
28shall include all of the following:

29(a) A map and legal description of the proposed district, which
30may include all or a portion of the district designated by the
31legislative body in its resolution of intention.

32(b) A description of the facilities required to serve the
33development proposed in the area of the district including those
34to be provided by the private sector, those to be provided by
35governmental entities without assistance under this chapter, those
36improvements and facilities to be financed with assistance from
37the proposed district, and those to be provided jointly. The
38description shall include the proposed location, timing, and costs
39of the improvements and facilities.

P11   1(c) A finding that the facilities are of communitywide
2significance.

3(d) A financing section, which shall contain all of the following
4information:

5(1) A specification of the maximum portion of the incremental
6tax revenue of the city and of each affected taxing entity proposed
7to be committed to the district for each year during which the
8district will receive incremental tax revenue. The portion need not
9be the same for all affected taxing entities. The portion may change
10 over time.

11(2) A projection of the amount of tax revenues expected to be
12received by the district in each year during which the district will
13receive tax revenues, including an estimate of the amount of tax
14revenues attributable to each affected taxing entity proposed to be
15committed to the district for each year. If applicable, the plan shall
16also include a specification of the maximum portion of the net
17available revenue of the city proposed to be committed to the
18district for each year during which the district will receive revenue.
19The portion may vary over time.

20(3) A plan for financing the facilities to be assisted by the
21district, including a detailed description of any intention to incur
22debt.

23(4) A limit on the total number of dollars of taxes that may be
24allocated to the district pursuant to the plan.

25(5) A date on which the district shall cease to exist, by which
26time all tax allocation, including any allocation of net available
27revenue, to the district will end. The date shall not be more than
2840 years from the date on which the ordinance forming the district
29is adopted pursuant to Section 53399.23, or a later date, if specified
30by the ordinance, on which the allocation of tax increment will
31begin. The district may issue debt with a final maturity date of up
32to 30 years from the date of issuance of each debt issue, subject
33to the time limit on tax allocation to the district.

34(6) An analysis of the costs to the city of providing facilities
35and services to the area of the district while the area is being
36developed and after the area is developed. The plan shall also
37include an analysis of the tax, fee, charge, and other revenues
38expected to be received by the city as a result of expected
39development in the area of the district.

P12   1(7) An analysis of the projected fiscal impact of the district and
2the associated development upon each affected taxing entity that
3is proposed to participate in financing the district.

4(8) A plan for financing any potential costs that may be incurred
5by reimbursing a developer of a project that is both located entirely
6within the boundaries of that district and qualifies for the Transit
7Priority Project Program, pursuant to Section 65470, including
8any permit and affordable housing expenses related to the project.

9(e) If any dwelling units occupied by persons or families of low
10or moderate income are proposed to be removed or destroyed in
11the course of private development or facilities construction within
12the area of the district, a plan providing for replacement of those
13units and relocation of those persons or families consistent with
14the requirements of Section 53399.6.

15

53399.15.  

The infrastructure financing plan shall be sent to
16each owner of land within the proposed district and to each affected
17taxing entity together with any report required by the California
18Environmental Quality Act (Division 13 (commencing with Section
1921000) of the Public Resources Code) that pertains to the proposed
20facilities or the proposed development project for which the
21facilities are needed, and shall be made available for public
22inspection. The report shall also be sent to the planning commission
23and the legislative body.

24

53399.16.  

The designated official shall consult with each
25affected taxing entity, and, at the request of any affected taxing
26entity, shall meet with representatives of an affected taxing entity.
27Any affected taxing entity may suggest revisions to the plan.

28

53399.17.  

The legislative body shall conduct a public hearing
29prior to adopting the proposed infrastructure financing plan. The
30public hearing shall be called no sooner than 60 days after the plan
31has been sent to each affected taxing entity. In addition to the
32notice given to landowners and affected taxing entities pursuant
33to Sections 53399.11 and 53399.12, notice of the public hearing
34shall be given by publication not less than once a week for four
35successive weeks in a newspaper of general circulation published
36in the city in which the proposed district is located. The notice
37shall state that the district will be used to finance public works,
38briefly describe the public works, briefly describe the proposed
39financial arrangements, including the proposed commitment of
40incremental tax revenue, describe the boundaries of the proposed
P13   1district and state the day, hour, and place when and where any
2persons having any objections to the proposed infrastructure
3financing plan, or the regularity of any of the prior proceedings,
4may appear before the legislative body and object to the adoption
5of the proposed plan by the legislative body.

6

53399.18.  

At the hour set in the required notices, the legislative
7body shall proceed to hear and pass upon all written and oral
8objections. The hearing may be continued from time to time. The
9legislative body shall consider the recommendations, if any, of
10affected taxing entities, and all evidence and testimony for and
11against the adoption of the plan. The legislative body may modify
12the plan by eliminating or reducing the size and cost of proposed
13public works, by reducing the amount of proposed debt, or by
14reducing the portion, amount, or duration of incremental tax
15revenues to be committed to the district.

16

53399.19.  

(a) The legislative body shall not enact a resolution
17proposing formation of a district and providing for the division of
18taxes of any affected taxing entity pursuant to Article 3
19(commencing with Section 53399.30) unless a resolution approving
20the plan has been adopted by the governing body of each affected
21taxing entity which is proposed to be subject to division of taxes
22pursuant to Article 3 (commencing with Section 53399.30) has
23been filed with the legislative body at or prior to the time of the
24hearing.

25(b) In the case of an affected taxing entity that is a special district
26that provides fire protection services and where the county board
27of supervisors is the governing authority or has appointed itself as
28the governing board of the district, the plan shall be adopted by a
29separate resolution approved by the district’s governing authority
30or governing board.

31(c) This section shall not be construed to prevent the legislative
32body from amending its infrastructure financing plan and adopting
33a resolution proposing formation of the infrastructure and
34revitalization financing district without allocation of the tax
35revenues of any affected taxing entity which has not approved the
36infrastructure financing plan by resolution of the governing body
37of the affected taxing entity.

38

53399.20.  

(a) At the conclusion of the hearing, the legislative
39body may adopt a resolution proposing adoption of the
40infrastructure financing plan, as modified, and formation of the
P14   1infrastructure and revitalization financing district in a manner
2consistent with Section 53399.19, or it may abandon the
3proceedings. If the legislative body adopts a resolution proposing
4formation of the district, it shall then submit the proposal to create
5the district to the qualified electors of the proposed district in the
6next general election or in a special election to be held,
7notwithstanding any other requirement, including any requirement
8that elections be held on specified dates, contained in the Elections
9Code, at least 90 days, but not more than 180 days, following the
10adoption of the resolution of formation. The legislative body shall
11provide the resolution of formation, a certified map of sufficient
12scale and clarity to show the boundaries of the district, and a
13sufficient description to allow the elections official to determine
14the boundaries of the district to the official conducting the election
15within three business days after the adoption of the resolution of
16formation. The assessor’s parcel numbers for the land within the
17district shall be included if it is a landowner election or the district
18does not conform to an existing district’s boundaries and if
19requested by the official conducting the election. If the election is
20to be held less than 125 days following the adoption of the
21resolution of formation, the concurrence of the elections official
22conducting the election shall be required. However, any time limit
23specified by this section or requirement pertaining to the conduct
24of the election may be waived with the unanimous consent of the
25qualified electors of the proposed district and the concurrence of
26the elections official conducting the election.

27(b) If at least 12 persons have been registered to vote within the
28territory of the proposed district for each of the 90 days preceding
29the close of the hearing, the vote shall be by the registered voters
30of the proposed district, who need not necessarily be the same
31persons, with each voter having one vote. Otherwise, the vote shall
32be by the landowners of the proposed district and each landowner
33who is the owner of record at the close of the protest hearing, or
34the authorized representative thereof, shall have one vote for each
35 acre or portion of an acre of land that he or she owns within the
36proposed district. The number of votes to be voted by a particular
37landowner shall be specified on the ballot provided to that
38landowner.

39(c) Ballots for the special election authorized by subdivision (a)
40may be distributed to qualified electors by mail with return postage
P15   1prepaid or by personal service by the elections official. The official
2conducting the election may certify the proper mailing of ballots
3by an affidavit, which shall be exclusive proof of mailing in the
4absence of fraud. The voted ballots shall be returned to the elections
5official conducting the election not later than the hour specified
6in the resolution calling the election. However, if all the qualified
7voters have voted, the election shall be closed.

8

53399.21.  

(a) Except as otherwise provided in this chapter,
9the provisions of law regulating elections of the local agency that
10calls an election pursuant to this chapter, insofar as they may be
11applicable, shall govern all elections conducted pursuant to this
12chapter. Except as provided in subdivision (b), there shall be
13prepared and included in the ballot material provided to each voter,
14an impartial analysis pursuant to Section 9160 or 9280 of the
15Elections Code, arguments and rebuttals, if any, pursuant to
16Sections 9162 to 9167, inclusive, and 9190 of the Elections Code
17or pursuant to Sections 9281 to 9287, inclusive, and 9295 of the
18Elections Code.

19(b) If the vote is to be by the landowners of the proposed district,
20analysis and arguments may be waived with the unanimous consent
21of all the landowners and shall be so stated in the order for the
22election.

23

53399.22.  

(a) If the election is to be conducted by mail ballot,
24the elections official conducting the election shall provide ballots
25and election materials pursuant to subdivision (d) of Section 53326
26and Section 53327, together with all supplies and instructions
27necessary for the use and return of the ballot.

28(b) The identification envelope for return of mail ballots used
29in landowner elections shall contain the following:

30(1) The name of the landowner.

31(2) The address of the landowner.

32(3) A declaration, under penalty of perjury, stating that the voter
33is the owner of record or the authorized representative of the
34landowner entitled to vote and is the person whose name appears
35on the identification envelope.

36(4) The printed name and signature of the voter.

37(5) The address of the voter.

38(6) The date of signing and place of execution of the declaration
39pursuant to paragraph (3).

P16   1(7) A notice that the envelope contains an official ballot and is
2to be opened only by the canvassing board.

3

53399.23.  

After the canvass of returns of any election pursuant
4to Section 53399.20, the legislative body may, by ordinance, adopt
5the infrastructure financing plan and create the district with full
6force and effect of law, if 55 percent of the votes upon the question
7of creating the district are in favor of creating the district.

8

53399.24.  

After the canvass of returns of any election
9conducted pursuant to Section 53399.20, the legislative body shall
10take no further action with respect to the proposed infrastructure
11and revitalization financing district for one year from the date of
12the election if the question of creating the district fails to receive
13approval of 55 percent of the votes cast upon the question.

14

53399.25.  

The legislative body may submit a proposition to
15establish or change the appropriations limit, as defined by
16subdivision (h) of Section 8 of Article XIII   B of the California
17Constitution, of a district to the qualified electors of a proposed
18or established district. The proposition establishing or changing
19the appropriations limit shall become effective if approved by the
20qualified electors voting on the proposition and shall be adjusted
21for changes in the cost of living and changes in populations, as
22defined by subdivisions (b) and (c) of Section 7901, except that
23the change in population may be estimated by the legislative body
24in the absence of an estimate by the Department of Finance, and
25in accordance with Section 1 of Article XIII   B of the California
26Constitution. For purposes of adjusting for changes in population,
27the population of the district shall be deemed to be at least one
28person during each calendar year. Any election held pursuant to
29this section may be combined with any election held pursuant to
30Section 53395.20 in any convenient manner.

31

53399.26.  

No later than June 30 of each year after the adoption
32of an infrastructure financing plan, the legislative body shall post
33an annual report in an easily identifiable and accessible location
34on the legislative body’s Internet Web site. The annual report shall
35contain all of the following:

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

37(b) A description of the progress made toward the district’s
38adopted goals.

39(c) An assessment of the status regarding completion of the
40district’s projects.

 

P17   1Article 3.  Division of Taxes
2

 

3

53399.30.  

Any infrastructure financing plan may contain a
4provision that taxes, if any, levied upon taxable property in the
5area included within the infrastructure and revitalization financing
6district each year by or for the benefit of the State of California,
7or any affected taxing entity after the effective date of the ordinance
8adopted pursuant to Section 53399.23 to create the district, shall
9be divided as follows:

10(a) That portion of the taxes which would be produced by the
11rate upon which the tax is levied each year by or for each of the
12affected taxing entities upon the total sum of the assessed value
13of the taxable property in the district as shown upon the assessment
14roll used in connection with the taxation of the property by the
15affected taxing entity, last equalized prior to the effective date of
16the ordinance adopted pursuant to Section 53399.23 to create the
17district, shall be allocated to, and when collected shall be paid to,
18the respective affected taxing entities as taxes by or for the affected
19taxing entities on all other property are paid.

20(b) That portion of the levied taxes each year specified in the
21adopted infrastructure financing plan for the city and each affected
22taxing entity which has agreed to participate pursuant to Section
2353399.19 in excess of the amount specified in subdivision (a) shall
24be allocated to, and when collected shall be paid into a special
25fund of, the district for all lawful purposes of the district. Unless
26and until the total assessed valuation of the taxable property in a
27district exceeds the total assessed value of the taxable property in
28the district as shown by the last equalized assessment roll referred
29to in subdivision (a), all of the taxes levied and collected upon the
30taxable property in the district shall be paid to the respective
31affected taxing entities. When the district ceases to exist pursuant
32to the adopted infrastructure financing plan, all moneys thereafter
33received from taxes upon the taxable property in the district shall
34be paid to the respective affected taxing entities as taxes on all
35other property are paid.

36

53399.31.  

All costs incurred by a county in connection with
37the division of taxes pursuant to Section 53399.30 for a district
38shall be paid by that district.

 

P17   1Article 4.  Tax Increment Bonds
2

 

3

53399.40.  

The legislative body may, by majority vote, initiate
4proceedings to issue bonds pursuant to this chapter by adopting a
5resolution stating its intent to issue the bonds.

6

53399.41.  

The resolution adopted pursuant to Section 53399.40
7shall contain all of the following information:

8(a) A description of the facilities to be financed with the
9proceeds of the proposed bond issue.

10(b) The estimated cost of the facilities, the estimated cost of
11preparing and issuing the bonds, and the principal amount of the
12proposed bond issuance.

13(c) The maximum interest rate and discount on the proposed
14bond issuance.

15(d) The date of the election on the proposed bond issuance and
16the manner of holding the election.

17(e) A determination of the amount of tax revenue available or
18estimated to be available, for the payment of the principal of, and
19interest on, the bonds.

20(f) A finding that the amount necessary to pay the principal of,
21and interest on, the proposed bond issuance will be less than, or
22equal to, the amount determined pursuant to subdivision (e).

23

53399.42.  

The clerk of the legislative body shall publish the
24resolution adopted pursuant to Section 53399.40 once a day for at
25least seven successive days in a newspaper published in the city
26or county at least six days a week, or at least once a week for two
27successive weeks in a newspaper published in the city or county
28less than six days a week.

29If there are no newspapers meeting these criteria, the resolution
30shall be posted in three public places within the territory of the
31district for two succeeding weeks.

32

53399.43.  

The legislative body shall submit the proposal to
33issue the bonds to the voters who reside within the district. The
34election shall be conducted in the same manner as the election to
35create the district pursuant to Section 53399.20 and the two
36elections may be consolidated.

37

53399.44.  

(a) Except as provided in Section 53399.4, bonds
38may be issued if 55 percent of the voters voting on the proposition
39vote in favor of authorizing the issuance of the bonds.

P19   1(b) If the voters authorize the issuance of the bonds as provided
2by subdivision (a), the legislative body may subsequently proceed
3with the issuance of the bonds by adopting a resolution which shall
4provide for all of the following:

5(1) The issuance of the bonds in one or more series.

6(2) The principal amount of the bonds, which shall be consistent
7with the amount specified in subdivision (b) of Section 53399.41.

8(3) The date the bonds will bear.

9(4) The date of maturity of the bonds.

10(5) The denomination of the bonds.

11(6) The form of the bonds.

12(7) The manner of execution of the bonds.

13(8) The medium of payment in which the bonds are payable.

14(9) The place or manner of payment and any requirements for
15registration of the bonds.

16(10) The terms of call or redemption, with or without premium.

17

53399.45.  

If any proposition submitted to the voters pursuant
18to this chapter is defeated by the voters, the legislative body shall
19not submit, or cause to be submitted, a similar proposition to the
20voters for at least one year after the first election.

21

53399.46.  

The legislative body may, by majority vote, provide
22for refunding of bonds issued pursuant to this chapter. However,
23refunding bonds shall not be issued if the total net interest cost to
24maturity on the refunding bonds plus the principal amount of the
25refunding bonds exceeds the total net interest cost to maturity on
26the bonds to be refunded. The legislative body may not extend the
27time to maturity of the bonds.

28

53399.47.  

The legislative body or any person executing the
29bonds shall not be personally liable on the bonds by reason of their
30issuance. The bonds and other obligations of a district issued
31pursuant to this chapter are not a debt of the city, county, or state
32or of any of its political subdivisions, other than the district, and
33none of those entities, other than the district, shall be liable on the
34bonds and the bonds or obligations shall be payable exclusively
35from funds or properties of the district. The bonds shall contain a
36statement to this effect on their face. The bonds do not constitute
37an indebtedness within the meaning of any constitutional or
38statutory debt limitation.

39

53399.48.  

(a) The bonds may be sold at discount not to exceed
405 percent of par at a negotiated or public sale. At least five days
P20   1prior to a public sale, notice shall be published, pursuant to Section
26061, in a newspaper of general circulation and in a financial
3newspaper published in the City and County of San Francisco and
4in the City of Los Angeles. The bonds may be sold at not less than
5par to the federal government at private sale without any public
6advertisement.

7(b) Any negotiated sale of bonds pursuant to this section shall
8be limited to bond issuances of an infrastructure and revitalization
9financing district that do not exceed five million dollars
10 ($5,000,000).

11

53399.49.  

If any member of the legislative body whose
12signature appears on bonds ceases to be a member of the legislative
13body before delivery of the bonds, his or her signature is as
14effective as if he or she had remained in office. Bonds issued
15pursuant to this chapter are fully negotiable.

16

SEC. 2.  

Section 33459 of the Health and Safety Code is
17amended to read:

18

33459.  

For purposes of this article, the following terms shall
19have the following meanings:

20(a) “Department” means the Department of Toxic Substances
21Control.

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

23(c) “Hazardous substance” means any hazardous substance as
24defined in subdivision (h) of Section 25281, and any reference to
25hazardous substance in the definitions referenced in this section
26shall be deemed to refer to hazardous substance, as defined in this
27subdivision.

28(d) “Local agency” means a single local agency that is one of
29the following:

30(1) A local agency authorized pursuant to Section 25283 to
31implement Chapter 6.7 (commencing with Section 25280) of, and
32Chapter 6.75 (commencing with Section 25299.10) of, Division
3320.

34(2) A local officer who is authorized pursuant to Section 101087
35to supervise a remedial action.

36(3) An infrastructure and revitalization financing district created
37pursuant to Chapter 2.6 (commencing with Section 53369) or
38Chapter 2.10 (commencing with Sectionbegin delete 52299end deletebegin insert 53399end insert), of Part 1
39of Division 2 of Title 5 of the Government Code.

P21   1(e) “Qualified independent contractor” means an independent
2contractor who is any of the following:

3(1) An engineering geologist who is certified pursuant to Section
47842 of the Business and Professions Code.

5(2) A geologist who is registered pursuant to Section 7850 of
6the Business and Professions Code.

7(3) A civil engineer who is registered pursuant to Section 6762
8of the Business and Professions Code.

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

10(g) “Remedy” or “remove” means any action to assess, evaluate,
11investigate, monitor, remove, correct, clean up, or abate a release
12of a hazardous substance or to develop plans for those actions.
13“Remedy” includes any action set forth in Section 25322 and
14“remove” includes any action set forth in Section 25323.

15(h) “Responsible party” means any person described in
16subdivision (a) of Section 25323.5 of this code or subdivision (a)
17of Section 13304 of the Water Code.



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