Amended in Senate August 19, 2013

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 citybegin insert, as defined,end insert 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 bybegin delete such aend deletebegin insert theend insert 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.

begin insert

This bill would incorporate additional changes to Section 33459 of the Health and Safety Code proposed by SB 470 that would become operative if this bill and SB 470 are enacted and this bill is enacted last.

end insert

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.  

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

4 

5Chapter  2.10. Infrastructure and Revitalization
6Financing Districts
7

7 

8Article 1.  General Provisions
9

 

10

53399.  

It is the intent of the Legislature in enacting this chapter
11to establish a long-term permanent program that provides local
12governments with tools and resources for specified purposes,
13including, but not limited to, public infrastructure, affordable
14housing, economic development and job creation, and
15environmental protection and remediation, in a manner that
16encourages local cooperation and includes appropriate protections
17for state and local taxpayers.

18

53399.1.  

Unless the context otherwise requires, the definitions
19contained in this article shall govern the construction of this
20chapter.

21(a) “Affected taxing entity” means any governmental taxing
22agency that levied or had levied on its behalf a property tax on all
23or a portion of the property located in the proposed district in the
24fiscal year prior to the designation of the district, but not including
25any county office of education, school district, or community
26college district.

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

28(c) “Debt” means any binding obligation to repay a sum of
29 moneys, including obligations in the form of bonds, certificates
30of participation, long-term leases, loans from government agencies,
31or loans from banks, other financial institutions, private businesses,
32or individuals.

33(d) “Designated official” means the city engineer or other
34appropriate official designated pursuant to Section 53399.13.

35(e) (1) “District” means an infrastructure and revitalization
36financing district.

P4    1(2) An infrastructure and revitalization financing district is a
2“district” within the meaning of Section 1 of Article XIII A of the
3California Constitution.

4(f) “Infrastructure and revitalization financing district” means
5a legally constituted governmental entity established pursuant to
6this chapter for the sole purpose of financing facilities authorized
7by this chapter.

8(g) “Landowner” or “owner of land” means any person shown
9as the owner of land on the last equalized assessment roll or
10otherwise known to be the owner of the land by the legislative
11body. The legislative body shall not have any obligation to obtain
12other information as to the ownership of land, and its determination
13of ownership shall be final and conclusive for the purposes of this
14chapter. A public agency is not a landowner or owner of land for
15purposes of this chapter, unless the public agency owns all of the
16land to be included within the proposed district.

17(h) “Legislative body” means the city council or board of
18supervisors.

19(i) “Project area” means a defined area within a district in which
20the activities of the district share a common purpose or goal and
21an overall financing plan.

22(j) “Public works” means public facilities or any other facilities
23described in Section 53399.3 that are to be financed in whole or
24in part by the district.

25(k) “Net available revenue” means periodic distributions to the
26city from the Redevelopment Property Tax Trust Fund, created
27pursuant to Section 34170.5 of the Health and Safety Code, that
28are available to the city after all preexisting legal commitments
29and statutory obligations funded from that revenue are made
30pursuant to Part 1.85 (commencing with Section 34170) of Division
3124 of the Health and Safety Code. Net available revenue shallbegin insert not end insert
32 includebegin delete only revenue remaining after all current distributions,
33including, but not limited to, payment of enforceable obligations,
34all distributions to other taxing entities, and applicable
35administrative fees, have been madeend delete
begin insert any funds deposited by the
36county auditor-controller into the Redevelopment Property Tax
37Trust Fund or funds remaining in the Redevelopment Property
38Tax Trust Fund, prior to distribution. Net available revenues shall
39not include any moneys payable to a school district that maintains
40kindergarten and grades 1 to 12, inclusive, or to the Education
P5    1Revenue Augmentation Fund, pursuant to paragraph (4) of
2subdivision (a) of Section 34183 of the Health and Safety Codeend insert
.

3

53399.2.  

(a) The revenues available pursuant to Article 3
4(commencing with Section 53399.30) may be used directly for
5work allowed pursuant to Section 53399.3, may be accumulated
6for a period not to exceed five years to provide a fund for that
7work, may be pledged to pay the principal of, and interest on,
8bonds issued pursuant to Article 4 (commencing with Section
953399.40), or may be pledged to pay the principal of, and interest
10on, bonds issued pursuant to the Improvement Bond Act of 1915
11(Division 10 (commencing with Section 8500) of the Streets and
12Highways Code) or the Mello-Roos Community Facilities Act of
131982 (Chapter 2.5 (commencing with Section 53311)), the proceeds
14of which have been or will be used entirely for allowable purposes
15of the district. The revenue of the district may also be advanced
16for allowable purposes of the district to an Integrated Financing
17District established pursuant to Chapter 1.5 (commencing with
18Section 53175), in which case the district may be party to a
19reimbursement agreement established pursuant to that chapter.
20The revenues of the district may also be committed to paying for
21any completed facility acquired pursuant to Section 53399.3 over
22a period of time, including the payment of a rate of interest not to
23exceed the bond buyer index rate on the day that the agreement to
24repay is entered into by the city.

25(b) The legislative body may enter into an agreement with any
26affected taxing entity providing for the construction of, or
27assistance in, financing facilities.

28

53399.3.  

(a) A district may finance (1) the purchase,
29construction, expansion, improvement, seismic retrofit, or
30rehabilitation of any real or other tangible property with an
31estimated useful life of 15 years or longer which satisfies the
32requirements of subdivision (b), (2) may finance planning and
33design work which is directly related to the purchase, construction,
34expansion, improvement, rehabilitation, or seismic retrofit of that
35property, and (3) the costs described in Sections 53399.6 and
3653399.31. The facilities need not be physically located within the
37boundaries of the district. A district may not finance routine
38maintenance, repair work, or the costs of ongoing operation or
39providing services of any kind.

P6    1(b) The district shall finance only facilities or projects of
2communitywide significance, including, but not limited to, any of
3the following:

4(1) Highways, interchanges, ramps and bridges, arterial streets,
5parking facilities, and transit facilities.

6(2) Sewage treatment and water reclamation plants and
7interceptor pipes.

8(3) Facilities and watershed lands used for the collection and
9treatment of water for urban uses.

10(4) Flood management, including levees, bypasses, dams,
11retention basins, and drainage channels.

12(5) Child care facilities.

13(6) Libraries.

14(7) Parks, recreational facilities, open space, and habitat
15restoration.

16(8) Facilities for the transfer and disposal of solid waste,
17including transfer stations and vehicles.

18(9) Brownfields restoration and other environmental mitigation.

19(10) Purchase of land and property for development purposes
20and related site improvements.

21(11) Acquisition, construction, or repair of housing for rental
22or purchase, including multipurpose facilities.

23(12) Acquisition, construction, or repair of commercial or
24industrial structures for private use.

25(13) The repayment of the transfer of funds to a military base
26reuse authority pursuant to Section 67851.

27(c) Any district that constructs dwelling units shall set aside not
28less than 20 percent of those units to increase and improve the
29community’s supply of low- and moderate-income housing
30available at an affordable housing cost, as defined by Section
3150052.5 of the Health and Safety Code, or at an affordable rent,
32as defined by Section 50053 of the Health and Safety Code, to
33persons and families of low and moderate income, as defined in
34Section 50093 of the Health and Safety Code.

35(d) A district may utilize any powers under the Polanco
36Redevelopment Act (Article 12.5 (commencing with Section
3733459) of Chapter 4 of Part 1 of Division 24 of the Health and
38Safety Code), and finance any action necessary to implement that
39act.

P7    1(e) A district may finance any project that implements a
2sustainable communities strategy prepared pursuant to Section
365080.

4

53399.4.  

(a) A city may form a district to finance a project or
5projects on a former military base pursuant to the requirements set
6forth in this chapter.

7(b) A district formed under this section may finance a project
8pursuant to this section or Section 53399.3 only if the project is
9consistent with the authority reuse plan and is approved by the
10military base reuse authority, if applicable.

11(c) Notwithstanding Sections 53399.20, 53399.21, 53399.22,
1253399.23, and 53399.44, the following actions shall not be subject
13to voter approval in the case of a district formed under this section:

14(1) The formation of the district, provided that, at the time of
15approval of the formation of the district, all of the land within the
16proposed district is owned by one or more public entities, military
17base reuse authorities, or entities controlled by governmental
18agencies.

19(2) The authorization to issue debt and the issuance of debt by
20a district formed under this section to finance facilities described
21in the infrastructure financing plan, provided that, at the time of
22approval of the formation of the district, all of the land within the
23proposed district, or a designated project area within the district
24on which the facilities to be financed with the bonds will be located
25is owned by one or more public entities, military base reuse
26authorities, or entities controlled by governmental agencies. The
27bonds authorized by this paragraph may be issued in one or more
28series upon the adoption by the district of the resolution described
29 in subdivision (b) of Section 53399.44.

30

53399.5.  

(a) A district may finance only the facilities or
31services authorized in this chapter. The additional facilities or
32services may not supplant facilities or services already available
33within that territory when the district was created, except if those
34facilities or services are essentially nonfunctional, obsolete,
35hazardous, or in need of upgrading or rehabilitation. The additional
36facilities or services may supplement those facilities and services
37as needed to serve new developments.

38(b) A district may include areas that are not contiguous. A
39district may be divided into project areas, each of which may be
40subject to distinct limitations established under this chapter. The
P8    1legislative body may, at any time, add territory to a district or
2amend the infrastructure financing plan for the district by
3conducting the same procedures for the formation of a district or
4approval of bonds, if applicable, as provided pursuant to this
5chapter.

begin delete

6(c) Any district may finance any project or portion of a project
7that is located in, or overlaps with, any redevelopment project area
8or former redevelopment project area or former military base.

end delete
begin insert

9(c) If a district’s boundaries overlap with the boundaries of a
10 former redevelopment agency, a participating city may allocate
11its share of net available revenue, as defined by subdivision (k) of
12Section 53399.1, from within the boundaries of the former
13redevelopment agency to the infrastructure financing district.

end insert
begin insert

14(d) A district shall not finance any project or portion of a project
15within the boundaries of a former redevelopment agency until the
16successor agency to the former redevelopment agency has received
17a finding of completion, as defined by Section 34179.7 of the Health
18and Safety Code, and has no pending litigation against the state
19related to Part 1.8 (commencing with Section 34161) or Part 1.85
20(commencing with Section 34170) of the Health and Safety Code.

end insert
begin delete

33 21(d)

end delete

22begin insert(e)end insert Notwithstanding subdivision (c), any debt or obligation of
23a district shall be subordinate to an enforceable obligation of a
24former redevelopment agency, as defined in Section 34171 of the
25Health and Safety Code.

begin delete

37 26(e)

end delete

27begin insert(f)end insert The legislative body of the city forming the district may
28choose to dedicate any portion of its net available revenue to the
29district through the financing plan described in Section 53399.14.

30

53399.6.  

It is the intent of the Legislature that the establishment
31of a district should not ordinarily lead to the removal of existing
32functional, habitable, and safe dwelling units. If, however, any
33dwelling units are proposed to be removed or destroyed in the
34course of private development or facilities construction within the
35area of the district, the legislative body shall do all of the following:

36(a) Within four years of the removal or destruction, cause or
37require the construction or rehabilitation, for rental or sale to
38persons or families of low or moderate income, of an equal number
39of replacement dwelling units at affordable housing cost, as defined
40in Section 50052.5 of the Health and Safety Code, or affordable
P9    1rent, as defined in Section 50053 of the Health and Safety Code,
2within the territory of the district if the dwelling units removed
3were inhabited by persons or families of low or moderate income,
4as defined in Section 50093 of the Health and Safety Code.

5(b) Within four years of the removal or destruction, cause or
6require the construction or rehabilitation, for rental or sale to
7persons of low or moderate income, a number of dwelling units
8which is at least one unit but not less than 20 percent of the total
9dwelling units removed at affordable housing cost, as defined in
10Section 50052.5 of the Health and Safety Code, or affordable rent,
11as defined in Section 50053 of the Health and Safety Code, within
12the territory of the district if the dwelling units removed or
13destroyed were not inhabited by persons of low or moderate
14income, as defined in Section 50093 of the Health and Safety Code.

15(c) In the case of dwelling units located on a former military
16base that are destroyed or removed in connection with a base reuse
17plan, replacement dwelling units required by subdivision (a) or
18(b) may be located anywhere within the territory of the former
19military base consistent with the base reuse plan, local general
20plan, and infrastructure financing plan, as applicable.

21(d) Provide relocation assistance and make all the payments
22required by Chapter 16 (commencing with Section 7260) of
23Division 7 of Title 1, to persons displaced by any public or private
24development occurring within the territory of the district. This
25displacement shall be deemed to be the result of public action.

26(e) Ensure that removal or destruction of any dwelling units
27occupied by persons or families of low or moderate income not
28take place unless and until there are suitable housing units, at
29 comparable cost to the units from which the persons or families
30were displaced, available and ready for occupancy by the residents
31of the units at the time of their displacement. The housing units
32shall be suitable to the needs of these displaced persons or families
33and shall be decent, safe, sanitary, and otherwise standard
34dwellings.

35

53399.7.  

Any action or proceeding to attack, review, set aside,
36void, or annul the creation of a district, adoption of an infrastructure
37financing plan, including a division of taxes thereunder, or an
38election pursuant to this chapter shall be commenced within 30
39days after the enactment of the ordinance creating the district
40pursuant to Section 53399.23. Consistent with the time limitations
P10   1of this section, such an action or proceeding with respect to a
2division of taxes under this chapter may be brought pursuant to
3Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
4the Code of Civil Procedure, except that Section 869 of the Code
5of Civil Procedure shall not apply.

6

53399.8.  

An action to determine the validity of the issuance
7of bonds pursuant to this chapter may be brought pursuant to
8Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
9the Code of Civil Procedure. However, notwithstanding the time
10limits specified in Section 860 of the Code of Civil Procedure, the
11action shall be commenced within 30 days after adoption of the
12resolution pursuant to Section 53399.44 providing for issuance of
13the bonds if the action is brought by an interested person pursuant
14to Section 863 of the Code of Civil Procedure. Any appeal from
15a judgment in that action or proceeding shall be commenced within
1630 days after entry of judgment.

17 

18Article 2.  Preparation and Adoption of Infrastructure and
19Revitalization Financing District Plans
20

 

21

53399.10.  

A legislative body of a city may designate one or
22more proposed infrastructure and revitalization financing districts
23pursuant to this chapter. Proceedings for the establishment of a
24district shall be instituted by the adoption of a resolution of
25intention to establish the proposed district and shall do all of the
26following:

27(a) State that an infrastructure and revitalization financing
28district is proposed to be established under the terms of this chapter
29and describe the boundaries of the proposed district and any project
30area proposed within the district, which may be accomplished by
31reference to a map on file in the office of the clerk of the city.

32(b) State the type of facilities proposed to be financed by the
33district. The district may only finance facilities authorized by
34Section 53399.3.

35(c) State that incremental property tax revenue from the city
36and some or all affected taxing entities within the district may be
37used to finance these facilities.

38(d) State that net available revenue from the city may be used
39to finance these facilities and state the maximum portion of the
P11   1net available revenue to be committed to the district for each year
2during which the district will receive these revenues.

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

4

53399.11.  

The legislative body shall cause a copy of the
5resolution of intention to create the district to be mailed to each
6owner of land within the district.

7

53399.12.  

The legislative body shall cause a copy of the
8resolution to be mailed to each affected taxing entity.

9

53399.13.  

After adopting the resolution pursuant to Section
1053399.10, the legislative body shall designate and direct the city
11engineer or other appropriate official to prepare an infrastructure
12plan pursuant to Section 53399.14.

13

53399.14.  

After receipt of a copy of the resolution of intention
14to establish a district, the official designated pursuant to Section
1553399.13 shall prepare a proposed infrastructure financing plan.
16The infrastructure financing plan shall be consistent with the
17general plan of the city within which the district is located and
18shall include all of the following:

19(a) A map and legal description of the proposed district, which
20may include all or a portion of the district designated by the
21legislative body in its resolution of intention.

22(b) A description of the facilities required to serve the
23development proposed in the area of the district including those
24to be provided by the private sector, those to be provided by
25governmental entities without assistance under this chapter, those
26improvements and facilities to be financed with assistance from
27the proposed district, and those to be provided jointly. The
28description shall include the proposed location, timing, and costs
29of the improvements and facilities.

30(c) A finding that the facilities are of communitywide
31significance.

32(d) A financing section, which shall contain all of the following
33information:

34(1) A specification of the maximum portion of the incremental
35tax revenue of the city and of each affected taxing entity proposed
36to be committed to the district for each year during which the
37district will receive incremental tax revenue. The portion need not
38be the same for all affected taxing entities. The portion may change
39 over time.

P12   1(2) A projection of the amount of tax revenues expected to be
2received by the district in each year during which the district will
3receive tax revenues, including an estimate of the amount of tax
4revenues attributable to each affected taxing entity proposed to be
5committed to the district for each year. If applicable, the plan shall
6also include a specification of the maximum portion of the net
7available revenue of the city proposed to be committed to the
8district for each year during which the district will receive revenue.
9The portion may vary over time.

10(3) A plan for financing the facilities to be assisted by the
11district, including a detailed description of any intention to incur
12debt.

13(4) A limit on the total number of dollars of taxes that may be
14allocated to the district pursuant to the plan.

15(5) A date on which the district shall cease to exist, by which
16time all tax allocation, including any allocation of net available
17revenue, to the district will end. The date shall not be more than
1840 years from the date on which the ordinance forming the district
19is adopted pursuant to Section 53399.23, or a later date, if specified
20by the ordinance, on which the allocation of tax increment will
21begin. The district may issue debt with a final maturity date of up
22to 30 years from the date of issuance of each debt issue, subject
23to the time limit on tax allocation to the district.

24(6) An analysis of the costs to the city of providing facilities
25and services to the area of the district while the area is being
26developed and after the area is developed. The plan shall also
27include an analysis of the tax, fee, charge, and other revenues
28expected to be received by the city as a result of expected
29development in the area of the district.

30(7) An analysis of the projected fiscal impact of the district and
31the associated development upon each affected taxing entity that
32is proposed to participate in financing the district.

33(8) A plan for financing any potential costs that may be incurred
34by reimbursing a developer of a project that is both located entirely
35within the boundaries of that district and qualifies for the Transit
36Priority Project Program, pursuant to Section 65470, including
37any permit and affordable housing expenses related to the project.

38(e) If any dwelling units occupied by persons or families of low
39or moderate income are proposed to be removed or destroyed in
40the course of private development or facilities construction within
P13   1the area of the district, a plan providing for replacement of those
2units and relocation of those persons or families consistent with
3the requirements of Section 53399.6.

4

53399.15.  

The infrastructure financing plan shall be sent to
5each owner of land within the proposed district and to each affected
6taxing entity together with any report required by the California
7Environmental Quality Act (Division 13 (commencing with Section
821000) of the Public Resources Code) that pertains to the proposed
9facilities or the proposed development project for which the
10facilities are needed, and shall be made available for public
11inspection. The report shall also be sent to the planning commission
12and the legislative body.

13

53399.16.  

The designated official shall consult with each
14affected taxing entity, and, at the request of any affected taxing
15entity, shall meet with representatives of an affected taxing entity.
16Any affected taxing entity may suggest revisions to the plan.

17

53399.17.  

The legislative body shall conduct a public hearing
18prior to adopting the proposed infrastructure financing plan. The
19public hearing shall be called no sooner than 60 days after the plan
20has been sent to each affected taxing entity. In addition to the
21notice given to landowners and affected taxing entities pursuant
22to Sections 53399.11 and 53399.12, notice of the public hearing
23shall be given by publication not less than once a week for four
24successive weeks in a newspaper of general circulation published
25in the city in which the proposed district is located. The notice
26shall state that the district will be used to finance public works,
27briefly describe the public works, briefly describe the proposed
28financial arrangements, including the proposed commitment of
29incremental tax revenue, describe the boundaries of the proposed
30district and state the day, hour, and place when and where any
31persons having any objections to the proposed infrastructure
32financing plan, or the regularity of any of the prior proceedings,
33may appear before the legislative body and object to the adoption
34of the proposed plan by the legislative body.

35

53399.18.  

At the hour set in the required notices, the legislative
36body shall proceed to hear and pass upon all written and oral
37objections. The hearing may be continued from time to time. The
38legislative body shall consider the recommendations, if any, of
39affected taxing entities, and all evidence and testimony for and
40against the adoption of the plan. The legislative body may modify
P14   1the plan by eliminating or reducing the size and cost of proposed
2public works, by reducing the amount of proposed debt, or by
3reducing the portion, amount, or duration of incremental tax
4revenues to be committed to the district.

5

53399.19.  

(a) The legislative body shall not enact a resolution
6proposing formation of a district and providing for the division of
7taxes of any affected taxing entity pursuant to Article 3
8(commencing with Section 53399.30) unless a resolution approving
9the plan has been adopted by the governing body of each affected
10taxing entity which is proposed to be subject to division of taxes
11pursuant to Article 3 (commencing with Section 53399.30) has
12been filed with the legislative body at or prior to the time of the
13hearing.

14(b) In the case of an affected taxing entity that is a special district
15that provides fire protection services and where the county board
16of supervisors is the governing authority or has appointed itself as
17the governing board of the district, the plan shall be adopted by a
18separate resolution approved by the district’s governing authority
19or governing board.

20(c) This section shall not be construed to prevent the legislative
21body from amending its infrastructure financing plan and adopting
22a resolution proposing formation of the infrastructure and
23revitalization financing district without allocation of the tax
24revenues of any affected taxing entity which has not approved the
25infrastructure financing plan by resolution of the governing body
26of the affected taxing entity.

27

53399.20.  

(a) At the conclusion of the hearing, the legislative
28body may adopt a resolution proposing adoption of the
29infrastructure financing plan, as modified, and formation of the
30infrastructure and revitalization financing district in a manner
31consistent with Section 53399.19, or it may abandon the
32proceedings. If the legislative body adopts a resolution proposing
33formation of the district, it shall then submit the proposal to create
34the district to the qualified electors of the proposed district in the
35next general election or in a special election to be held,
36notwithstanding any other requirement, including any requirement
37that elections be held on specified dates, contained in the Elections
38Code, at least 90 days, but not more than 180 days, following the
39adoption of the resolution of formation. The legislative body shall
40provide the resolution of formation, a certified map of sufficient
P15   1scale and clarity to show the boundaries of the district, and a
2sufficient description to allow the elections official to determine
3the boundaries of the district to the official conducting the election
4within three business days after the adoption of the resolution of
5formation. The assessor’s parcel numbers for the land within the
6district shall be included if it is a landowner election or the district
7does not conform to an existing district’s boundaries and if
8requested by the official conducting the election. If the election is
9to be held less than 125 days following the adoption of the
10resolution of formation, the concurrence of the elections official
11conducting the election shall be required. However, any time limit
12specified by this section or requirement pertaining to the conduct
13of the election may be waived with the unanimous consent of the
14qualified electors of the proposed district and the concurrence of
15the elections official conducting the election.

16(b) If at least 12 persons have been registered to vote within the
17territory of the proposed district for each of the 90 days preceding
18the close of the hearing, the vote shall be by the registered voters
19of the proposed district, who need not necessarily be the same
20persons, with each voter having one vote. Otherwise, the vote shall
21be by the landowners of the proposed district and each landowner
22who is the owner of record at the close of the protest hearing, or
23the authorized representative thereof, shall have one vote for each
24 acre or portion of an acre of land that he or she owns within the
25proposed district. The number of votes to be voted by a particular
26landowner shall be specified on the ballot provided to that
27landowner.

28(c) Ballots for the special election authorized by subdivision (a)
29may be distributed to qualified electors by mail with return postage
30prepaid or by personal service by the elections official. The official
31conducting the election may certify the proper mailing of ballots
32by an affidavit, which shall be exclusive proof of mailing in the
33absence of fraud. The voted ballots shall be returned to the elections
34official conducting the election not later than the hour specified
35in the resolution calling the election. However, if all the qualified
36voters have voted, the election shall be closed.

37

53399.21.  

(a) Except as otherwise provided in this chapter,
38the provisions of law regulating elections of the local agency that
39calls an election pursuant to this chapter, insofar as they may be
40applicable, shall govern all elections conducted pursuant to this
P16   1chapter. Except as provided in subdivision (b), there shall be
2prepared and included in the ballot material provided to each voter,
3an impartial analysis pursuant to Section 9160 or 9280 of the
4Elections Code, arguments and rebuttals, if any, pursuant to
5Sections 9162 to 9167, inclusive, and 9190 of the Elections Code
6or pursuant to Sections 9281 to 9287, inclusive, and 9295 of the
7Elections Code.

8(b) If the vote is to be by the landowners of the proposed district,
9analysis and arguments may be waived with the unanimous consent
10of all the landowners and shall be so stated in the order for the
11election.

12

53399.22.  

(a) If the election is to be conducted by mail ballot,
13the elections official conducting the election shall provide ballots
14and election materials pursuant to subdivision (d) of Section 53326
15and Section 53327, together with all supplies and instructions
16necessary for the use and return of the ballot.

17(b) The identification envelope for return of mail ballots used
18in landowner elections shall contain the following:

19(1) The name of the landowner.

20(2) The address of the landowner.

21(3) A declaration, under penalty of perjury, stating that the voter
22is the owner of record or the authorized representative of the
23landowner entitled to vote and is the person whose name appears
24on the identification envelope.

25(4) The printed name and signature of the voter.

26(5) The address of the voter.

27(6) The date of signing and place of execution of the declaration
28pursuant to paragraph (3).

29(7) A notice that the envelope contains an official ballot and is
30to be opened only by the canvassing board.

31

53399.23.  

After the canvass of returns of any election pursuant
32to Section 53399.20, the legislative body may, by ordinance, adopt
33the infrastructure financing plan and create the district with full
34force and effect of law, if 55 percent of the votes upon the question
35of creating the district are in favor of creating the district.

36

53399.24.  

After the canvass of returns of any election
37conducted pursuant to Section 53399.20, the legislative body shall
38take no further action with respect to the proposed infrastructure
39and revitalization financing district for one year from the date of
P17   1the election if the question of creating the district fails to receive
2approval of 55 percent of the votes cast upon the question.

3

53399.25.  

The legislative body may submit a proposition to
4establish or change the appropriations limit, as defined by
5subdivision (h) of Section 8 of Article XIII   B of the California
6Constitution, of a district to the qualified electors of a proposed
7or established district. The proposition establishing or changing
8the appropriations limit shall become effective if approved by the
9qualified electors voting on the proposition and shall be adjusted
10for changes in the cost of living and changes in populations, as
11defined by subdivisions (b) and (c) of Section 7901, except that
12the change in population may be estimated by the legislative body
13in the absence of an estimate by the Department of Finance, and
14in accordance with Section 1 of Article XIII   B of the California
15Constitution. For purposes of adjusting for changes in population,
16the population of the district shall be deemed to be at least one
17person during each calendar year. Any election held pursuant to
18this section may be combined with any election held pursuant to
19Section 53395.20 in any convenient manner.

20

53399.26.  

No later than June 30 of each year after the adoption
21of an infrastructure financing plan, the legislative body shall post
22an annual report in an easily identifiable and accessible location
23on the legislative body’s Internet Web site. The annual report shall
24contain all of the following:

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

26(b) A description of the progress made toward the district’s
27adopted goals.

28(c) An assessment of the status regarding completion of the
29district’s projects.

30 

31Article 3.  Division of Taxes
32

 

33

53399.30.  

Any infrastructure financing plan may contain a
34provision that taxes, if any, levied upon taxable property in the
35area included within the infrastructure and revitalization financing
36district each year by or for the benefit of the State of California,
37or any affected taxing entity after the effective date of the ordinance
38adopted pursuant to Section 53399.23 to create the district, shall
39be divided as follows:

P18   1(a) That portion of the taxes which would be produced by the
2rate upon which the tax is levied each year by or for each of the
3affected taxing entities upon the total sum of the assessed value
4 of the taxable property in the district as shown upon the assessment
5roll used in connection with the taxation of the property by the
6affected taxing entity, last equalized prior to the effective date of
7the ordinance adopted pursuant to Section 53399.23 to create the
8district, shall be allocated to, and when collected shall be paid to,
9the respective affected taxing entities as taxes by or for the affected
10taxing entities on all other property are paid.

11(b) That portion of the levied taxes each year specified in the
12adopted infrastructure financing plan for the city and each affected
13taxing entity which has agreed to participate pursuant to Section
1453399.19 in excess of the amount specified in subdivision (a) shall
15be allocated to, and when collected shall be paid into a special
16fund of, the district for all lawful purposes of the district. Unless
17and until the total assessed valuation of the taxable property in a
18district exceeds the total assessed value of the taxable property in
19the district as shown by the last equalized assessment roll referred
20to in subdivision (a), all of the taxes levied and collected upon the
21taxable property in the district shall be paid to the respective
22affected taxing entities. When the district ceases to exist pursuant
23to the adopted infrastructure financing plan, all moneys thereafter
24received from taxes upon the taxable property in the district shall
25be paid to the respective affected taxing entities as taxes on all
26other property are paid.

27

53399.31.  

All costs incurred by a county in connection with
28the division of taxes pursuant to Section 53399.30 for a district
29shall be paid by that district.

30 

31Article 4.  Tax Increment Bonds
32

 

33

53399.40.  

The legislative body may, by majority vote, initiate
34proceedings to issue bonds pursuant to this chapter by adopting a
35resolution stating its intent to issue the bonds.

36

53399.41.  

The resolution adopted pursuant to Section 53399.40
37shall contain all of the following information:

38(a) A description of the facilities to be financed with the
39proceeds of the proposed bond issue.

P19   1(b) The estimated cost of the facilities, the estimated cost of
2preparing and issuing the bonds, and the principal amount of the
3proposed bond issuance.

4(c) The maximum interest rate and discount on the proposed
5bond issuance.

6(d) The date of the election on the proposed bond issuance and
7the manner of holding the election.

8(e) A determination of the amount of tax revenue available or
9estimated to be available, for the payment of the principal of, and
10interest on, the bonds.

11(f) A finding that the amount necessary to pay the principal of,
12and interest on, the proposed bond issuance will be less than, or
13equal to, the amount determined pursuant to subdivision (e).

14

53399.42.  

The clerk of the legislative body shall publish the
15resolution adopted pursuant to Section 53399.40 once a day for at
16least seven successive days in a newspaper published in the city
17or county at least six days a week, or at least once a week for two
18successive weeks in a newspaper published in the city or county
19less than six days a week.

20If there are no newspapers meeting these criteria, the resolution
21shall be posted in three public places within the territory of the
22district for two succeeding weeks.

23

53399.43.  

The legislative body shall submit the proposal to
24issue the bonds to the voters who reside within the district. The
25election shall be conducted in the same manner as the election to
26create the district pursuant to Section 53399.20 and the two
27elections may be consolidated.

28

53399.44.  

(a) Except as provided in Section 53399.4, bonds
29may be issued if 55 percent of the voters voting on the proposition
30vote in favor of authorizing the issuance 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 Section 53399.41.

38(3) The date the bonds will bear.

39(4) The date of maturity of the bonds.

40(5) The denomination of the bonds.

P20   1(6) The form of the bonds.

2(7) The manner of execution of the bonds.

3(8) The medium of payment in which the bonds are payable.

4(9) The place or manner of payment and any requirements for
5registration of the bonds.

6(10) The terms of call or redemption, with or without premium.

7

53399.45.  

If any proposition submitted to the voters pursuant
8to this chapter is defeated by the voters, the legislative body shall
9not submit, or cause to be submitted, a similar proposition to the
10voters for at least one year after the first election.

11

53399.46.  

The legislative body may, by majority vote, provide
12for refunding of bonds issued pursuant to this chapter. However,
13refunding bonds shall not be issued if the total net interest cost to
14maturity on the refunding bonds plus the principal amount of the
15refunding bonds exceeds the total net interest cost to maturity on
16the bonds to be refunded. The legislative body may not extend the
17time to maturity of the bonds.

18

53399.47.  

The legislative body or any person executing the
19bonds shall not be personally liable on the bonds by reason of their
20issuance. The bonds and other obligations of a district issued
21pursuant to this chapter are not a debt of the city, county, or state
22or of any of its political subdivisions, other than the district, and
23none of those entities, other than the district, shall be liable on the
24bonds and the bonds or obligations shall be payable exclusively
25from funds or properties of the district. The bonds shall contain a
26statement to this effect on their face. The bonds do not constitute
27an indebtedness within the meaning of any constitutional or
28statutory debt limitation.

29

53399.48.  

(a) The bonds may be sold at discount not to exceed
305 percent of par at a negotiated or public sale. At least five days
31prior to a public sale, notice shall be published, pursuant to Section
326061, in a newspaper of general circulation and in a financial
33newspaper published in the City and County of San Francisco and
34in the City of Los Angeles. The bonds may be sold at not less than
35par to the federal government at private sale without any public
36advertisement.

37(b) Any negotiated sale of bonds pursuant to this section shall
38be limited to bond issuances of an infrastructure and revitalization
39financing district that do not exceed five million dollars
40 ($5,000,000).

P21   1

53399.49.  

If any member of the legislative body whose
2signature appears on bonds ceases to be a member of the legislative
3body before delivery of the bonds, his or her signature is as
4effective as if he or she had remained in office. Bonds issued
5pursuant to this chapter are fully negotiable.

6

SEC. 2.  

Section 33459 of the Health and Safety Code is
7amended to read:

8

33459.  

For purposes of this article, the following terms shall
9have the following meanings:

10(a) “Department” means the Department of Toxic Substances
11Control.

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

13(c) “Hazardous substance” means any hazardous substance as
14defined in subdivision (h) of Section 25281, and any reference to
15hazardous substance in the definitions referenced in this section
16shall be deemed to refer to hazardous substance, as defined in this
17subdivision.

18(d) “Local agency” means a single local agency that is one of
19the following:

20(1) A local agency authorized pursuant to Section 25283 to
21implement Chapter 6.7 (commencing with Section 25280) of, and
22Chapter 6.75 (commencing with Section 25299.10) of, Division
2320.

24(2) A local officer who is authorized pursuant to Section 101087
25to supervise a remedial action.

26(3) An infrastructure and revitalization financing district created
27pursuant to Chapter 2.6 (commencing with Section 53369) or
28Chapter 2.10 (commencing with Section 53399)begin delete,end delete of Part 1 of
29Division 2 of Title 5 of the Government Code.

30(e) “Qualified independent contractor” means an independent
31contractor who is any of the following:

32(1) An engineering geologist who is certified pursuant to Section
337842 of the Business and Professions Code.

34(2) A geologist who is registered pursuant to Section 7850 of
35the Business and Professions Code.

36(3) A civil engineer who is registered pursuant to Section 6762
37of the Business and Professions Code.

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

39(g) “Remedy” or “remove” means any action to assess, evaluate,
40investigate, monitor, remove, correct, clean up, or abate a release
P22   1of a hazardous substance or to develop plans for those actions.
2“Remedy” includes any action set forth in Section 25322 and
3“remove” includes any action set forth in Section 25323.

4(h) “Responsible party” means any person described in
5subdivision (a) of Section 25323.5 of this code or subdivision (a)
6of Section 13304 of the Water Code.

7begin insert

begin insertSEC. 2.5.end insert  

end insert

begin insertSection 33459 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
8amended to read:end insert

9

33459.  

For purposes of this article, the following terms shall
10have the following meanings:

begin insert

11(a) “Agency” includes a former redevelopment agency as
12defined in Section 33003 and a city, county, or city and county.

end insert
begin delete

13(a)

end delete

14begin insert(b)end insert “Department” means the Department of Toxic Substances
15Control.

begin delete

16(b)

end delete

17begin insert(c)end insert “Director” means the Director of Toxic Substances Control.

begin delete

18(c)

end delete

19begin insert(d)end insert “Hazardous substance” means any hazardous substance as
20defined in subdivision (h) of Section 25281, and any reference to
21hazardous substance in the definitions referenced in this section
22shall be deemed to refer to hazardous substance, as defined in this
23subdivision.

begin delete

24(d)

end delete

25begin insert(e)end insert “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.

begin insert

33(3) An infrastructure and revitalization financing district created
34pursuant to Chapter 2.6 (commencing with Section 53369) or
35Chapter 2.10 (commencing with Section 53399) of Part 1 of
36Division 2 of Title 5 of the Government Code.

end insert
begin delete

37(e)

end delete

38begin insert(f)end insert “Qualified independent contractor” means an independent
39contractor who is any of the following:

P23   1(1)  An engineering geologist who is certified pursuant to
2Section 7842 of the Business and Professions Code.

3(2)  A geologist who is registered pursuant to Section 7850 of
4the Business and Professions Code.

5(3)  A civil engineer who is registered pursuant to Section 6762
6of the Business and Professions Code.

begin delete

7(f)

end delete

8begin insert(g)end insert “Release” means any release, as defined in Section 25320.

begin delete

9(g)

end delete

10begin insert(h)end insert “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.

begin delete

15(h)

end delete

16begin insert(i)end insert “Responsible party” means any person described in
17subdivision (a) of Section 25323.5 of this code or subdivision (a)
18of Section 13304 of the Water Code.

19begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

Section 2.5 of this bill incorporates amendments to
20Section 33459 of the Health and Safety Code proposed by both
21this bill and Senate Bill 470. It shall become operative only if (1)
22both bills are enacted and become effective on or before January
231, 2014, (2) each bill amends Section 33459 of the Health and
24Safety Code, and (3) this bill is enacted after Senate Bill 470, in
25which case Section 2 of this bill shall not become operative.

end insert


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