BILL ANALYSIS Ó
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: AB 715 HEARING: 6/25/14
AUTHOR: Dickinson FISCAL: No
VERSION: 6/16/14 TAX LEVY: No
CONSULTANT: Weinberger
SACRAMENTO AREA FLOOD CONTROL AGENCY'S ASSESSMENTS
Specifies how the Sacramento Area Flood Control Agency can
make changes to assessment amounts, district boundaries,
and other aspects of its benefit assessments.
Background and Existing Law
The California Constitution defines a benefit assessment as
"any levy or charge upon real property by an agency for a
special benefit conferred upon the real property"
(Proposition 218, 1996). Several state laws allow local
officials to levy benefit assessments to pay for public
works and public services, like flood control, street
improvement, streetlights, and public landscaping. The
Constitution requires owners of real property to approve
benefit assessments in a weighted-ballot election.
Property owners vote in proportion to their proposed
assessments, which reflect how much their property benefits
from the proposed public works or public services.
The Sacramento Flood Control Agency (SAFCA) is a joint
powers agency, formed in 1990, with a membership that is
comprised of Sacramento County, Sutter County, the City of
Sacramento, Sacramento County Water Agency, Sutter County
Water Agency, Reclamation District No. 1000, and the
American River Flood Control District. SAFCA is
responsible for coordinating a regional effort to finance,
provide, and maintain facilities and works necessary to
ensure a reasonable and prudent level of flood protection
in designated residential, commercial, or industrial areas
within its boundaries and for providing local assurances
and participating in cost sharing for federal flood control
projects. The agency is governed by the provisions of a
special act enacted by the Legislature in 1990, the
Sacramento Area Flood Control Agency Act (SB 46, Garamendi,
1990).
AB 715 -- 6/16/14 -- Page 2
SAFCA's special act allows it to levy assessments,
reassessments, or special taxes and issue bonds to finance
the acquisition, construction, maintenance, or operation of
authorized flood control facilities. SAFCA may levy
assessments, reassessments, or special taxes, and issue
bonds in accordance with, and pursuant to: the Improvement
Act of 1911, the Improvement Bond Act of 1915, the
Municipal Improvement Act of 1913, the Benefit Assessment
Act of 1982, the Integrated Financing District Act, the
Mello-Roos Community Facilities Act of 1982, and the
Marks-Roos Local Bond Pooling Act of 1985. The Agency's
special act also establishes another process that the
Agency may use, as an alternative or in addition to its
other powers, to levy assessments and issue bonds.
Unlike some other state laws authorizing local governments
to levy benefit assessments, the Sacramento Area Flood
Control Agency Act does not explicitly authorize SAFCA to
make changes to an existing assessment district. SAFCA
officials want the Agency's special act to grant it the
same authority that some statutes grant to other local
governments to increase the amount of an assessment, expand
district boundaries, and make other changes to an existing
assessment district.
Proposed Law
Assembly Bill 715 allows the Sacramento Area Flood Control
Agency to, at any time, change any of the following:
The boundaries of any assessment district
established by the agency.
Any projects identified in the report prepared by
the agency when it formed an assessment district.
Any assessments levied by the agency.
Any act, determination, or provision by the agency
or the board with respect to any assessment district
established by the agency.
AB 715 requires SAFCA to initiate, conduct, and complete
proceedings for any change consistent with:
Article XIIID of the California Constitution,
The Proposition 218 Omnibus Implementation Act, and
The procedures provided by state law for the agency
AB 715 -- 6/16/14 -- Page 3
to form an assessment district.
The bill requires that, in proceedings to annex territory
to an existing assessment district, the resolutions,
report, notices of hearing, right of majority protest, and
any election must be limited to the territory proposed to
be annexed. In proceedings to detach an area from an
existing assessment district or dissolve an existing
assessment district, SAFCA may dispense with the
preparation and approval of the report that is required as
part of the process to establish a district.
AB 715 prohibits SAFCA from making a change to any
assessment district while the bond secured by the
assessments levied in that assessment district are
outstanding, unless SAFCA's board determines in the
resolution of intention with respect to the change that it
will not interfere with the bonds' timely retirement.
The bill defines the term "change" to include correct,
alter, modify, add, omit, increase, decrease, extend, or
any other change.
State Revenue Impact
No estimate.
Comment
1. Purpose of the bill . SAFCA finances its program for
improving the Sacramento area's flood control system by
creating assessment districts and levying annual
assessments on properties which benefit from the
improvements. Although the state laws governing SAFCA
provide legal authority for the formation of assessment
districts, they do not provide explicit authority for SAFCA
to make any changes to an existing assessment district. To
allow SAFCA to change an existing assessment district, AB
715 adds language to SAFCA's special act that replicates
provisions in the Municipal Improvement Act of 1913 and the
Landscape and Lighting Act of 1972.
2. Gut-and-amend . As introduced, AB 715 contained
provisions relating to the appellate standard of review for
AB 715 -- 6/16/14 -- Page 4
evidence. On June 25, 2013, AB 715 was amended to delete
that language and insert language updating an obsolete
cross-reference in the Evidence Code relating to the fee
waivers. The Senate Governance & Finance Committee never
heard any of those versions of the bill. The June 16
amendments deleted AB 715's contents and inserted the
current language relating to SAFCA's assessments. Those
amendments prompted Senate Rules Committee to refer the
bill to the Senate Governance & Finance Committee pursuant
to Senate Rule 29.10(c).
Assembly Actions
Not relevant to the June 16, 2014 version of the bill.
Support and Opposition (6/19/14)
Support : Sacramento Area Flood Control Agency.
Opposition : Unknown.