BILL NUMBER: AB 690 INTRODUCED
INTRODUCED BY Assembly Member Campos
FEBRUARY 21, 2013
An act to amend Sections 53395, 53395.1, 53395.3, 53395.4,
53395.5, 53395.10, 53395.13, 53395.14, 53395.19, 53395.23, and
53395.24 of the Government Code, and to amend Section 33459 of the
Health and Safety Code, relating to jobs and infrastructure financing
LEGISLATIVE COUNSEL'S DIGEST
AB 690, as introduced, Campos. Jobs and infrastructure financing
districts: voter approval.
Existing law authorizes a legislative body, as defined, to create
an infrastructure financing district, adopt an infrastructure
financing plan, and issue bonds, for which only the district is
liable, to finance specified public facilities, upon approval by 2/3
of the voters. Existing law authorizes an infrastructure financing
district to fund infrastructure projects through tax increment
financing, pursuant to the infrastructure financing plan and
agreement of affected taxing entities, as defined.
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 revise and recast the provisions governing
infrastructure financing districts and instead provide for the
creation of jobs and infrastructure financing districts (JIDs) with
55% voter approval. The bill would authorize a public financing
authority to enter into joint powers agreements with affected taxing
entities with regard to nontaxing authority or powers only. The bill
would authorize a district to implement hazardous cleanup pursuant to
the Polanco Redevelopment Act, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to do all of the
(a) Establish a program that will enable local cities and counties
to form tax exempt financing authorities known as Job and
Infrastructure Districts (JIDs).
(b) To authorize JIDs to prepare comprehensive job creation plans
(JCP), the objective of which shall be to identify the targeted
industries that would be provided assistance in the form of property
tax increment financing to locate or expand within the JID.
SEC. 2. Section 53395 of the Government Code is amended to read:
Legislature finds and declares that the The
Legislature finds and declares all of the following:
(a) The state and federal
governments have withdrawn in whole or in part from their former role
in financing major, regional, or communitywide infrastructure,
including highways and interchanges, sewage treatment and water
reclamation works, water supply and treatment works, flood control
and drainage works, schools, libraries, parks, parking facilities,
open space, and seismic retrofit and rehabilitation of public
(b) The Legislature further finds and declares that the
methods available to local agencies to finance public works
often place an undue and unfair burden on buyers of new homes,
especially for public works that benefit the broader community.
(c) The Legislature further finds and declares that the
absence of practical and equitable methods for financing
both regional and local public works leads to a declining standard of
public works, a reduced quality of life and decreased safety for
affected citizens, increased objection to otherwise desirable
development, and excessive costs for homebuyers.
(d) The Legislature further finds and declares that it
It is equitable and in the public interest to
provide alternative procedures for financing public works and
services needed to meet the needs of new housing and other
(e) Approximately 85 percent of the state's general fund budget is
generated by income tax and sales tax, which are derived from, or
are directly linked to, employment. Therefore, the state's structural
budget deficit will not be resolved unless private sector investment
(f) Tax increment financing is recognized as a compelling and
flexible financing tool for inducing private sector investment that
creates jobs and tax revenue for the state and for local communities.
(g) Local prevailing wage job creating projects that use tax
increment financing based on property tax have the potential to
return new income tax and sales tax revenue to the state on an annual
basis that would exceed to the incremental property tax invested in
SEC. 3. Section 53395.1 of the Government Code is amended to read:
53395.1. Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
(a) "Affected taxing entity" means any governmental taxing agency
which that levied or had levied on its
behalf a property tax on all or a portion of the property located in
the proposed district in the fiscal year prior to the designation of
the district, but not including any county office of education,
school district, or community college district.
(b) "City" means a city, a county, or a city and county.
(c) "Debt" means any binding obligation to repay a sum of money,
including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
(d) "Designated official" means the city engineer or other
appropriate official designated pursuant to Section 53395.13.
(e) (1) "District" means an a job and
infrastructure financing district.
(2) An A jobs and infrastructure
financing district is a "district" within the meaning of Section 1 of
Article XIII A of the California Constitution.
(f) "Infrastructure "Jobs and
infrastructure financing district" means a legally constituted
governmental entity established pursuant to this chapter for the sole
purpose of financing public facilities.
(g) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body. The
legislative body has no obligation to obtain other information as to
the ownership of land, and its determination of ownership shall be
final and conclusive for the purposes of this chapter. A public
agency is not a landowner or owner of land for purposes of this
chapter, unless the public agency owns all of the land to be included
within the proposed district.
(h) "Legislative body" means the city council or board of
SEC. 4. Section 53395.3 of the Government Code is amended to read:
53395.3. (a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer which
that satisfies the requirements of subdivision (b), (2)
may finance planning and design work which
that is directly related to the purchase, construction,
expansion, or rehabilitation of that property , and (3) the
costs described in Sections 53395.5, 53395.5
and 53396.5. A district may only finance the purchase of
facilities for which construction has been completed, as determined
by the legislative body. The facilities need not be physically
located within the boundaries of the district. A district
may shall not finance routine maintenance,
repair work, or the costs of ongoing operation or providing services
of any kind.
(b) The district shall finance only public capital facilities of
communitywide significance, which provide significant benefits to an
area larger than the area of the district, including, but not limited
to, all of the following:
(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
(3) Facilities for the collection and treatment of water for urban
(4) Flood control levees and dams, retention basins, and drainage
(5) Child care facilities.
(7) Parks, recreational facilities, and open space.
(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(c) The district shall be a local agency within the meaning of
subdivision (d) of Section 33459 of the Health and Safety Code and
may finance any actions necessary to implement the Polanco
Redevelopment Act (Article 12.5 (commencing with Section 33459) of
Chapter 4 of Part 1 of Division 24 of the Health and Safety Code).
(d) Any district which that
constructs dwelling units shall set aside not less than 20
percent of those units to increase and improve the community's supply
of low- and moderate-income housing available at an affordable
housing cost, as defined by Section 50052.5 of the Health and Safety
Code, to persons and families of low- and moderate-income, as defined
in Section 50093 of the Health and Safety Code.
SEC. 5. Section 53395.4 of the Government Code is amended to read:
53395.4. (a) A district may not include any portion of a
redevelopment project area which is or has been previously created
pursuant to Part 1 (commencing with Section 33000) of Division 24 of
the Health and Safety Code, whether the creation is or was proper or
improper. A redevelopment project area may not include any portion of
a district created pursuant to this chapter.
(a) A district may finance only the facilities or
services authorized in this chapter to the extent that the facilities
or services are in addition to those provided in the territory of
the district before the district was created. The additional
facilities or services may not supplant facilities or services
already available within that territory when the district was created
but may supplement those facilities and services as needed to serve
(b) A district may include areas which
that are not contiguous.
SEC. 6. Section 53395.5 of the Government Code is amended to read:
53395.5. It is the intent of the Legislature that the
area of the districts created be substantially undeveloped, and the
establishment of a district should not ordinarily lead to
the removal of existing dwelling units. If, however, any dwelling
units are proposed to be removed or destroyed in the course of
private development or public works construction within the area of
the district, the legislative body shall do all of the following:
(a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed were inhabited by
persons or families of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
(b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units which
is at least one unit but not less than 20 percent of the total
dwelling units removed at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
(c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of Division 7
of Title 1, to persons displaced by any public or private development
occurring within the territory of the district. This displacement
shall be deemed to be the result of public action.
(d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not take
place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families were
displaced, available and ready for occupancy by the residents of the
units at the time of their displacement. The housing units shall be
suitable to the needs of these displaced persons or families and
shall be decent, safe, sanitary, and otherwise standard dwellings.
SEC. 7. Section 53395.10 of the Government Code is amended to
53395.10. A legislative body of a city may designate one or more
proposed job and infrastructure financing districts
pursuant to this chapter in an area of high unemployment .
Proceedings for the establishment of a district shall be instituted
by the adoption of a resolution of intention to establish the
proposed district and shall do all of the following:
(a) State that an a job and
infrastructure financing district is proposed to be established
under the terms of this chapter and describe the boundaries of the
proposed district, which may be accomplished by reference to a map on
file in the office of the clerk of the city.
(b) State the type of public facilities and development
proposed to be financed or assisted by the
district. The district may only finance public facilities authorized
by district in accordance with Section 53395.3.
(c) State the need for the district based upon the area
unemployment rate and the goals the district proposes to achieve.
(d) State that incremental property tax revenue from
the city and some or all affected taxing entities within the district
may be used to finance these public facilities
implement the job creation plan adopted pursuant to Section
(e) Fix a time and place for a public hearing on the
SEC. 8. Section 53395.13 of the Government Code is amended to
53395.13. After adopting the resolution pursuant to Section
53395.10, the legislative body shall designate and direct the
city engineer or other appropriate official to
prepare an infrastructure a job creation
plan (JCP) pursuant to Section 53395.14.
SEC. 9. Section 53395.14 of the Government Code is amended to
53395.14. After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing
plan JCP . The infrastructure financing
plan JCP shall be consistent with the general
plan of the city within which the district is located and shall
include all of the following:
(a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.
(b) A description of the public facilities required to serve the
development proposed in the area of the district including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
(c) A finding that the public facilities are of communitywide
significance and provide significant benefits to an area larger than
the area of the district.
(d) A financing section, which shall contain all of the following
(1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity proposed to be
committed to the district for each year during which the district
will receive incremental tax revenue. The portion need not be the
same for all affected taxing entities. The portion may change over
(2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.
(3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
(4) A limit on the total number of dollars of taxes which
that may be allocated to the district pursuant
to the plan JCP .
(5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than 30 years from the date on which the ordinance forming
the district is adopted pursuant to Section 53395.23.
(6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed. The plan
JCP shall also include an analysis of the tax,
fee, charge, and other revenues expected to be received by the city
as a result of expected development in the area of the district.
(7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including any
permit and affordable housing expenses related to the project.
(e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53395.5.
(f) A formula that dictates that for every one million dollars
($1,000,000) invested, the JID shall create 10 prevailing wage jobs.
(g) A plan to encourage public-private partnerships with employers
and developers for property acquisitions, building and tenant
improvements, and equipment purchases.
SEC. 10. Section 53395.19 of the Government Code is amended to
53395.19. (a) The legislative body shall not enact a resolution
proposing formation of a district and providing for the division of
taxes of any affected taxing entity pursuant to Article 3 (commencing
with Section 53396) unless a resolution approving the plan has been
adopted by the governing body of each affected taxing entity which is
proposed to be subject to division of taxes pursuant to Article 3
(commencing with Section 53396) has been filed with the legislative
body at or prior to the time of the hearing.
(b) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting a resolution proposing formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity which has not approved the infrastructure
financing plan by resolution of the governing body of the affected
(c) A public financing authority may enter into a joint powers
agreement pursuant to Section 6500 with an affected taxing entity to
carry out the purposes of this chapter with regard to nontaxing
authority or powers only.
SEC. 11. Section 53395.23 of the Government Code is amended to
53395.23. After the canvass of returns of any election pursuant
to Section 53395.20, the legislative body may, by ordinance, adopt
the infrastructure financing plan JCP
and create the district with full force and effect of law, if
two-thirds 55 percent of the votes upon
the question of creating the district are in favor of creating the
SEC. 12. Section 53395.24 of the Government Code is amended to
53395.24. After the canvass of returns of any election conducted
pursuant to Section 53395.20, the legislative body shall take no
further action with respect to the proposed infrastructure financing
district for one year from the date of the election if the question
of creating the district fails to receive approval by
two-thirds 55 percent of the votes cast upon the
SEC. 13. Section 33459 of the Health and Safety Code is amended to
33459. For purposes of this article, the following terms shall
have the following meanings:
(a) "Department" means the Department of Toxic Substances
(b) "Director" means the Director of Toxic Substances Control.
(c) "Hazardous substance" means any hazardous substance as
defined in subdivision (h) of Section 25281, and any reference to
hazardous substance in the definitions referenced in this section
shall be deemed to refer to hazardous substance, as defined in this
(d) "Local agency" means a single local agency that is one of the
(1) A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and Chapter
6.75 (commencing with Section 25299.10) of, Division 20.
(2) A local officer who is authorized pursuant to Section 101087
to supervise a remedial action.
(3) A job and infrastructure district.
(e) "Qualified independent contractor" means an independent
contractor who is any of the following:
(1) An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.
(2) A geologist who is registered pursuant to Section 7850 of the
Business and Professions Code.
(3) A civil engineer who is registered pursuant to Section 6762
of the Business and Professions Code.
(f) "Release" means any release, as defined in Section 25320.
(g) "Remedy" or "remove" means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
"Remedy" includes any action set forth in Section 25322 and "remove"
includes any action set forth in Section 25323.
(h) "Responsible party" means any person described in subdivision
(a) of Section 25323.5 of this code or subdivision (a) of Section
13304 of the Water Code.