Senate Bill No. 33

Introduced by Senator Wolk

December 3, 2012

An act to amend Sections 53395, 53395.1, 53395.2, 53395.3, 53395.4, 53395.5, 53395.6, 53395.7, 53395.10, 53395.11, 53395.12, 53395.13, 53395.14, 53395.16, 53395.17, 53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, to repeal Sections 53395.22, 53395.23, 53395.24, 53395.25, 53397.4, 53397.5, 53397.6, and 53397.7 of, and to repeal and add Section 53395.21 of, the Government Code, relating to infrastructure financing districts.

LEGISLATIVE COUNSEL’S DIGEST

SB 33, as introduced, Wolk. Infrastructure financing districts: voter approval: repeal.

(1) 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 voter approval. 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.

This bill would revise and recast the provisions governing infrastructure financing districts. The bill would eliminate the requirement of voter approval for creation of the district and for bond issuance, and would authorize the legislative body to create the district subject to specified procedures. The bill would instead authorize a newly created public financing authority, consisting of 5 members, 3 of whom are members of the city council or board of supervisors that established the district, and 2 of whom are members of the public, to adopt the infrastructure financing plan, subject to approval by the legislative body, and issue bonds by majority vote of the authority by resolution. 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 finance specified actions and projects, and prohibit the district from providing financial assistance to a vehicle dealer or big box retailer, as defined. The bill would create a public accountability committee, as specified, to review the actions of the public financing authority.

(2) Existing law requires that an infrastructure financing plan created by a legislative body include a date on which the district will cease to exist, which shall not be more than 30 years from the date on which the ordinance forming the district is adopted.

This bill instead would specify that the date on which the district would cease to exist would not be more than 40 years from the date on which the public financing authority adopted the resolution adopting the infrastructure financing plan. The bill would also impose additional reporting requirements after the adoption of an infrastructure financing plan.

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.  

Section 53395 of the Government Code is
amended to read:

53395.  

(a) The Legislature finds and declares that the state
and federal governments have withdrawn in whole or in part from
their former role in financing begin delete major, regional, or communitywide end delete
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 facilities.

(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 begin delete both regional and end delete
begin delete local end delete 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.

begin insert

(d) The Legislature further finds and declares that because
California’s disadvantaged communities, as defined in Section
75005 of the Public Resources Code, may not be beneficiaries of
quality public works, these communities are neglected and, thus,
isolated from and deprived of the basic facilities needed for public
health and safety.

end insert begin delete

(d)

end delete

begin insert (e) end insert  The Legislature further finds and declares that 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 begin insert , disadvantaged communities, end insert and other development
projects.

begin insert

(f) The Legislature further finds and declares that it is in the
public interest to develop a mechanism that allows public agencies
to jointly dedicate their revenues to projects that support
sustainable communities.

end insert begin insert

(g) The Legislature further finds and declares that infrastructure
financing districts implement and fulfill the intent of Article 2
(commencing with Section 53395.10) and of Article XIII B of the
California Constitution, and are consistent with the conclusion of
California courts that tax increment revenues are not “proceeds
of taxes” for purposes of Article XIII B of the California
Constitution. The allocation and payment to a district of the portion
of taxes specified in this section for the purpose of paying principal
of, or interest on, loans, advances, or indebtedness incurred for
facilities or the cost of acquisition and construction of facilities
under this section shall not be deemed the receipt by a district of
proceeds of taxes levied by or on behalf of the district within the
meaning or for the purposes of Article XIII B of the California
Constitution, nor shall this portion of taxes be deemed receipt of
proceeds of taxes by, or an appropriation subject to limitation of,
any other public body within the meaning or for the purposes of
Article XIII B of the California Constitution or any statutory
provision enacted in the implementation of Article XIII B of the
California Constitution. The allocation and payment to a district
of this portion of taxes shall not be deemed the appropriation by
a district of proceeds of taxes levied by or on behalf of a district
within the meaning or for the purposes of Article XIII B of the
California Constitution.

end insert

SEC. 2.  

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
chapter.

(a) “Affected taxing entity” means any governmental taxing
agency which 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,
or individuals.

(d) “Designated official” means the city engineer or other
appropriate official designated pursuant to Section 53395.13.

(e) (1) “District” means an infrastructure financing district.

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

(f) “Infrastructure financing district” means a legally constituted
begin insert public and corporate end insert governmental entity begin insert separate and distinct end insert
begin insert from the city that end insert established begin insert it end insert pursuant to this chapter for the sole
purpose of financing public facilities. begin insert An infrastructure financing end insert
begin insert district shall be a “local agency” for purposes of Chapter 9 end insert
begin insert (commencing with Section 54950). end insert begin insert end insert

(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
supervisors.

begin insert

(i) “Public capital facilities of communitywide significance”
means facilities that benefit all areas within the district or serve
or are made available to those areas.

end insert begin insert

(j) “Public financing authority” means the legislative body of
the infrastructure financing district established pursuant to this
chapter. The public financing authority shall be comprised of five
people, three of whom shall be members of the city council or
board of supervisors that established the district pursuant to this
chapter and two of whom shall be public members. The three
members of the city council or board of supervisors shall appoint
the two public members in accordance with Chapter 11
(commencing with Section 54970) of Part 1 of Division 2 of Title
5.

end insert

SEC. 3.  

Section 53395.2 of the Government Code is amended
to read:

53395.2.  

(a) The revenues available pursuant to Article 3
(commencing with Section 53396) may be used directly for work
allowed pursuant to Section 53395.3, may be accumulated for a
period not to exceed five years to provide a fund for that work,
may be pledged to pay the principal of, and interest on, bonds
issued pursuant to Article 4 (commencing with Section 53397),
or may be pledged to pay the principal of, and interest on, bonds
issued pursuant to the Improvement Bond Act of 1915 (Division
10 (commencing with Section 8500) of the Streets and Highways
Code) or the Mello-Roos Community Facilities Act of 1982
(Chapter 2.5 (commencing with Section 53311)), the proceeds of
which have been or will be used entirely for allowable purposes
of the district. The revenue of the district may also be advanced
for allowable purposes of the district to an begin delete Integrated Financing end delete
begin delete District end delete begin insert integrated financing district end insert established pursuant to
Chapter 1.5 (commencing with Section 53175), in which case the
district may be party to a reimbursement agreement established
pursuant to that chapter. The revenues of the district may also be
committed to paying for any completed public facility acquired
pursuant to Section 53395.3 over a period of time, including the
payment of a rate of interest not to exceed the bond buyer index
rate on the day that the agreement to repay is entered into by the
begin delete city end delete begin insert district end insert .

(b) The begin delete legislative body end delete begin insert public financing authority end insert may enter
into an agreement with any affected taxing entity providing for
the construction of, or assistance in, financing begin delete public facilities end delete
begin insert activities pursuant to Section 53395.3 end insert .

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 begin delete which end delete begin insert that end insert satisfies the
requirements of subdivision (b), (2) may finance planning and
design work begin delete which end delete begin insert that end insert is directly related to the purchase,
construction, expansion, or rehabilitation of that property begin delete and end delete begin insert , end insert (3)
the costs described in Sections 53395.5 begin delete , end delete and 53396.5 begin insert , and (4) may end insert
begin insert contribute to the cost of maintaining facilities that are financed end insert
begin insert pursuant to subdivision (b) end insert . 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. begin delete A district end delete
begin delete may end delete begin insert Except as specifically provided in this section, a district shall end insert
not finance routine maintenance, repair work, or the costs of
ongoing operation or providing services of any kind. begin insert A district end insert
begin insert shall not compensate the members of the legislative body of the end insert
begin insert city or the district for any activities undertaken pursuant to this end insert
begin insert chapter. end insert begin insert end insert

(b) The district shall finance only begin insert structural or nonstructural end insert
public capital facilities of communitywide significance, begin delete which end delete
begin delete provide significant benefits to an area larger than the area of the end delete
begin delete district, end delete 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 pipes.

(3) Facilities begin insert and watershed lands used end insert for the collection and
treatment of water for urban uses.

(4) Flood control begin delete levees and end delete begin insert management including levees, end insert
begin insert bypasses, end insert dams, retention basins, and drainage channels.

(5) Child care facilities.

(6) Libraries.

(7) Parks, recreational facilities, begin delete and end delete open space begin insert , and habitat end insert
begin insert restoration end insert .

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

begin insert

(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).

end insert begin insert

(d) The district may finance any project that implements a transit
priority project pursuant to Section 65470, regional transportation
plan, or other projects that are consistent with the general use
designation, density, building intensity, and applicable policies
specified for the project area in either a sustainable communities
strategy or an alternative planning strategy, for which the State
Air Resources Board, pursuant to Chapter 2.5 (commencing with
Section 65080) of Division 2 of Title 7, has accepted a metropolitan
planning organization’s determination that the sustainable
communities strategy or the alternative planning strategy would,
if implemented, achieve the greenhouse gas emission reduction
targets.

end insert begin delete

(c)

end delete

begin insert (e) end insert  Any district begin delete which end delete begin insert that end insert 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.

begin insert

(f) Projects financed pursuant to this section that involve
construction, alteration, demolition, installation, or repair work
and dwelling units constructed by a district pursuant to this section,
shall be subject to Chapter 1 (commencing with Section 1720) of
Part 7 of Division 2 of the Labor Code.

end insert

SEC. 5.  

Section 53395.4 of the Government Code is amended
to read:

53395.4.  

(a) A district begin delete may end delete begin insert shall end insert not begin delete include end delete begin insert provide end insert any
begin delete portion of a redevelopment project area which is or has been end delete
begin delete previously created pursuant to Part 1 (commencing with Section end delete
begin delete 33000) of Division 24 of the Health and Safety Code, whether the end delete
begin delete creation is or was proper or improper. A redevelopment project end delete
begin delete area may not include any portion of a district created pursuant to end delete
begin delete this chapter end delete begin insert form of financial assistance to a vehicle dealer or a end insert
begin insert big box retailer, or a business entity that sells or leases land to a end insert
begin insert vehicle dealer or big box retailer, that is relocating from the end insert
begin insert territorial jurisdiction of one local agency to the territorial end insert
begin insert jurisdiction of another local agency, but within the same market end insert
begin insert area, as those terms are used in Section 53084 end insert .

(b) A district may finance only the facilities begin delete or services end delete
authorized in this chapter to the extent that the facilities begin delete or services end delete
are in addition to those provided in the territory of the district
before the district was created. The additional facilities begin delete or services end delete
may not supplant facilities begin delete or services end delete already available within that
territory when the district was created but may supplement begin delete those end delete
begin delete facilities and services as needed to serve new developments end delete begin insert , end insert
begin insert rehabilitate, upgrade, or make more sustainable those facilities end insert .

(c) A district may include areas begin delete which end delete begin insert that end insert 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 begin delete area of the end delete
begin delete districts created be substantially undeveloped, and the end delete
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 53395.6 of the Government Code is amended
to read:

53395.6.  

Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district begin delete , end delete begin insert or end insert adoption of an
infrastructure financing plan, including a division of taxes
thereunder, begin delete or an election pursuant to this chapter end delete shall be
commenced within 30 days after the begin delete enactment of the ordinance end delete
begin delete creating the district end delete begin insert date the legislative body adopted the resolution end insert
begin insert adopting the infrastructure financing plan end insert pursuant to Section
begin delete 53395.23 end delete begin insert 53395.20 end insert . Consistent with the time limitations of this
section, such an action or proceeding with respect to a division of
taxes under this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code
of Civil Procedure, except that Section 869 of the Code of Civil
Procedure shall not apply.

SEC. 8.  

Section 53395.7 of the Government Code is amended
to read:

53395.7.  

An action to determine the validity of the issuance
of bonds pursuant to this chapter may be brought pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure. However, notwithstanding the time
limits specified in Section 860 of the Code of Civil Procedure, the
action shall be commenced within 30 days after begin delete adoption of the end delete
begin delete resolution pursuant to Section 53397.6 providing for end delete begin insert the date the end insert
begin insert legislative body adopted the resolution adopting the infrastructure end insert
begin insert financing plan authorizing the end insert issuance of the bonds begin insert pursuant to end insert
begin insert Section 53397.1, end insert if the action is brought by an interested person
pursuant to Section 863 of the Code of Civil Procedure. Any appeal
from a judgment in that action or proceeding shall be commenced
within 30 days after entry of judgment.

SEC. 9.  

Section 53395.10 of the Government Code is amended
to read:

53395.10.  

A legislative body of a city may designate one or
more proposed infrastructure financing districts pursuant to this
chapter. 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 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 begin insert and development end insert proposed
to be financed begin insert or assisted end insert by the district begin delete . The district may only end delete
begin delete finance public facilities authorized by end delete begin insert in accordance with end insert Section
53395.3.

begin insert

(c) State the need for the district and the goals the district
proposes to achieve.

end insert begin delete

(c)

end delete

begin insert (d) end insert  State that incremental property tax revenue from the city
and some or all affected taxing entities within the district begin insert , if end insert
begin insert approved by resolution pursuant to Section 53395.19, end insert may be used
to begin delete finance these public facilities end delete begin insert implement the plan adopted end insert
begin insert pursuant to Section 53395.14 end insert .

begin delete

(d)

end delete

begin insert (e) end insert  Fix a time and place for a public hearing on the proposal.

SEC. 10.  

Section 53395.11 of the Government Code is amended
to read:

53395.11.  

The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district begin insert and to each affected taxing entity end insert .

SEC. 11.  

Section 53395.12 of the Government Code is amended
to read:

53395.12.  

begin insert (a) end insert begin insert   end insert The legislative body shall direct the clerk to
begin delete mail end delete begin insert post end insert a copy of the resolution begin delete to each affected taxing entity end delete begin insert of end insert
begin insert intention to create the district in an easily identifiable and end insert
begin insert accessible location on the legislative body’s Internet Web site end insert .

begin insert

(b) At the conclusion of the public hearing scheduled pursuant
to subdivision (e) of Section 53395.10, the legislative body of the
city may adopt a resolution establishing the infrastructure
financing district based upon a finding that (1) the goals of the
district are consistent with the general plan; and (2) the financing
programs undertaken by the district are an efficient means of
implementing the goals of the district.

end insert

SEC. 12.  

Section 53395.13 of the Government Code is amended
to read:

53395.13.  

After adopting the resolution pursuant to Section
begin delete 53395.10 end delete begin insert 53395.12 end insert , the legislative body shall begin insert send a copy of the end insert
begin insert resolution to the public financing authority. Upon receipt of the end insert
begin insert resolution, the public financing authority shall end insert designate and direct
the city engineer or other appropriate official to prepare an
infrastructure plan pursuant to Section 53395.14.

SEC. 13.  

Section 53395.14 of the Government Code is amended
to read:

53395.14.  

begin delete After receipt of a copy of the resolution of intention end delete
begin delete to establish a district, the end delete begin insert The end insert official designated pursuant to
Section 53395.13 shall prepare a proposed infrastructure financing
plan. The infrastructure financing plan 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 begin delete required to serve end delete begin insert , or end insert
begin insert assistance, that benefits or serves the development end insert 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)  begin delete A end delete begin insert If funding from affected taxing entities is incorporated end insert
begin insert into the financing plan, a end insert finding that the public facilities begin delete are of end delete
begin delete communitywide significance and end delete provide significant benefits to
an area larger than the area of the district.

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

(1) A specification of the maximum portion of the incremental
tax revenue of the city and of each affected taxing entity begin insert , if any, end insert
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 time.

(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
incur debt.

(4) A limit on the total number of dollars of taxes begin delete which end delete begin insert that end insert
may be allocated to the district pursuant to the plan.

(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 begin delete 30 end delete begin insert 40 end insert years from the date begin delete on which the ordinance end delete
begin delete forming the district is adopted end delete begin insert the public financing authority end insert
begin insert adopted the resolution adopting the infrastructure financing plan end insert
pursuant to Section begin delete 53395.23 end delete begin insert 53395.20 end insert .

(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 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 begin insert and additional end insert
begin insert expenses end insert related to the project begin insert or the developer of a project that end insert
begin insert implements a transit priority project end insert .

(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.

begin insert

(f) The goals the district proposes to achieve by financing public
facilities.

end insert begin insert

(g) The goals the district proposes to achieve by assisting the
development described in paragraph (8) of subdivision (d).

end insert begin insert

(h) If funding from affected taxing entities is included in the
plan, the creation of the public accountability committee, pursuant
to Section 53395.21.

end insert

SEC. 14.  

Section 53395.16 of the Government Code is amended
to read:

53395.16.  

The designated official shall consult with begin insert the city end insert
begin insert and end insert each affected taxing entity, and, at the request of any affected
taxing entity, shall meet with representatives of an affected taxing
entity. Any affected taxing entity may suggest revisions to the
plan.

SEC. 15.  

Section 53395.17 of the Government Code is amended
to read:

53395.17.  

The begin delete legislative body end delete begin insert public financing authority end insert shall
conduct a public hearing prior to adopting the proposed
infrastructure financing plan. The public hearing shall be called
no sooner than 60 days after the plan has been sent to each affected
taxing entity. In addition to the notice given to landowners and
affected taxing entities pursuant to Sections 53395.11 and
53395.12, notice of the public hearing shall be given by publication
not less than once a week for four successive weeks in a newspaper
of general circulation published in the city in which the proposed
district is located. The notice shall state that the district will be
used to finance public works, briefly describe the public works,
briefly describe the proposed financial arrangements, including
the proposed commitment of incremental tax revenue, describe
the boundaries of the proposed district and state the day, hour, and
place when and where any persons having any objections to the
proposed infrastructure financing plan, or the regularity of any of
the prior proceedings, may appear before the begin delete legislative body end delete
begin insert public financing authority end insert and object to the adoption of the
proposed plan by the begin delete legislative body end delete begin insert public financing authority end insert .

SEC. 16.  

Section 53395.19 of the Government Code is amended
to read:

53395.19.  

(a) The begin delete legislative body end delete begin insert public financing authority end insert
shall not enact a resolution begin delete proposing formation of a district and end delete
begin delete providing end delete begin insert approving a financing plan that provides end insert for the division
of taxes of any affected taxing entity pursuant to Article 3
(commencing with Section 53396) begin insert , end insert unless a resolution approving
the plan has been adopted by the governing body of each affected
taxing entity begin delete which end delete begin insert that end insert is proposed to be subject to division of
taxes pursuant to Article 3 (commencing with Section 53396) has
been filed with the begin delete legislative body end delete begin insert public financing authority end insert at
or prior to the time of the hearing.

begin insert

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

end insert begin delete

(b)

end delete

begin insert (c) end insert  Nothing in this section shall be construed to prevent the
begin delete legislative body end delete begin insert public financing authority end insert from amending its
infrastructure financing plan and adopting a resolution begin delete proposing end delete
begin delete formation of end delete begin insert forming end insert the infrastructure financing district without
allocation of the tax revenues of any affected taxing entity begin delete which end delete
begin insert that end insert has not approved the infrastructure financing plan by resolution
of the governing body of the affected taxing entity.

begin insert

(d) 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.

end insert begin insert

(e) An infrastructure financing plan that provides for the division
of taxes of any affected taxing entity shall not be implemented until
the date on which the public accountability committee is created
pursuant to Section 53395.21.

end insert

SEC. 17.  

Section 53395.20 of the Government Code is amended
to read:

53395.20.  

(a) At the conclusion of the hearing begin delete , the legislative end delete
begin delete body end delete begin insert required by Section 53395.17, the public financing authority end insert
may adopt a resolution begin delete proposing adoption of end delete begin insert adopting end insert the
infrastructure financing plan, as modified, and begin insert approving the end insert
formation of the infrastructure financing district in a manner
consistent with begin delete Section end delete begin insert Sections 53395.10 and end insert 53395.19, or it may
abandon the proceedings. begin delete If the legislative body adopts a resolution
proposing formation of the district, it shall then submit the proposal
to create the district to the qualified electors of the proposed district
in the next general election or in a special election to be held,
notwithstanding any other requirement, including any requirement
that elections be held on specified dates, contained in the Elections
Code, at least 90 days, but not more than 180 days, following the
adoption of the resolution of formation. The legislative body shall
provide the resolution of formation, a certified map of sufficient
scale and clarity to show the boundaries of the district, and a
sufficient description to allow the election official to determine
the boundaries of the district to the official conducting the election
within three business days after the adoption of the resolution of
formation. The assessor’s parcel numbers for the land within the
district shall be included if it is a landowner election or the district
does not conform to an existing district’s boundaries and if
requested by the official conducting the election. If the election is
to be held less than 125 days following the adoption of the
resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct
of the election may be waived with the unanimous consent of the
qualified electors of the proposed district and the concurrence of
the election official conducting the election end delete begin insert The public financing end insert
begin insert authority shall forward a copy of the plan to the legislative body end insert
begin insert to review and approve the financing section of the plan described end insert
begin insert in subdivision (d) of Section 53395.14. The infrastructure financing end insert
begin insert plan shall not take effect until approved by the legislative body end insert .

begin delete

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

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

end delete begin insert

(b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the public financing authority shall
direct the clerk of the legislative body to mail an annual report to
each owner of land within the district and each affected taxing
entity. The public financing authority shall direct the clerk of the
legislative body to post this annual report in an easily identifiable
and accessible location on the legislative body’s Internet Web site.
The annual report shall contain all of the following:

end insert begin insert

(1) A summary of the district’s expenditures.

end insert begin insert

(2) A description of the progress made towards the district’s
adopted goals.

end insert begin insert

(3) An assessment of the status regarding completion of the
district’s public works projects.

end insert begin insert

(c) If the district fails to provide the annual report required by
subdivision (b), the district shall not spend any funds to construct
public works projects until the annual report is submitted.

end insert begin insert

(d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public
works projects; provided, however, the district may complete any
public works projects that it had started. Any excess property tax
increment revenues that had been allocated for new public works
projects shall be reallocated to the affected taxing entities.

end insert

SEC. 18.  

Section 53395.21 of the Government Code is
repealed.

begin delete

53395.21.  

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

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

end delete

SEC. 19.  

Section 53395.21 is added to the Government Code,
to read:

53395.21.  

(a) If an infrastructure financing plan contains a
provision that provides for the division of taxes of any affected
taxing entity, a public accountability committee shall be established
pursuant to this section.

(b) A public accountability committee shall be comprised of a
representative of each affected taxing entity that has agreed to the
division of its taxes, a representative of the public financing
authority, and one or more public members.

(c) The legislative body of each affected taxing entity and the
legislative body of the public financing authority shall each appoint
one of its members, or their designee, to the public accountability
committee. Those persons appointed pursuant to this subdivision
shall, by lot, appoint one or more public members to ensure that
the public accountability committee consists of an odd number of
members for voting purposes.

(d) All meetings with the public accountability committee shall
be noticed in accordance with Section 54956.

(e) The purposes of the public accountability committee shall
be to conduct or have conducted an annual performance review
and an annual independent financial review of the public financing
authority. The costs of the audits required pursuant to this
subdivision shall be paid from revenues of the public financing
authority.

SEC. 20.  

Section 53395.22 of the Government Code is
repealed.

begin delete

53395.22.  

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

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

(1) The name of the landowner.

(2) The address of the landowner.

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

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

(5) The address of the voter.

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

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

end delete

SEC. 21.  

Section 53395.23 of the Government Code is
repealed.

begin delete

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 and create the district with full
force and effect of law, if two-thirds of the votes upon the question
of creating the district are in favor of creating the district.

end delete

SEC. 22.  

Section 53395.24 of the Government Code is
repealed.

begin delete

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 of the votes cast upon the question.

end delete

SEC. 23.  

Section 53395.25 of the Government Code is
repealed.

begin delete

53395.25.  

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

end delete

SEC. 24.  

Section 53396 of the Government Code is amended
to read:

53396.  

Any infrastructure financing plan may contain a
provision that taxes, if any, levied upon taxable property in the
area included within the infrastructure financing district each year
by or for the benefit of the State of California, or any affected
taxing entity after the effective date of the begin delete ordinance end delete begin insert resolution end insert
adopted pursuant to Section begin delete 53395.23 end delete begin insert 53395.20 end insert to create the
district, shall be divided as follows:

(a) That portion of the taxes begin delete which end delete begin insert that end insert would be produced by
the rate upon which the tax is levied each year by or for each of
the affected taxing entities upon the total sum of the assessed value
of the taxable property in the district as shown upon the assessment
roll used in connection with the taxation of the property by the
affected taxing entity, last equalized prior to the effective date of
the begin delete ordinance end delete begin insert resolution end insert adopted pursuant to Section begin delete 53395.23 end delete
begin insert 53395.20 end insert to create the district, shall be allocated to, and when
collected shall be paid to, the respective affected taxing entities as
taxes by or for the affected taxing entities on all other property are
paid.

(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity begin delete which end delete begin insert that end insert has agreed to participate pursuant to
Section 53395.19 in excess of the amount specified in subdivision
(a) shall be allocated to, and when collected shall be paid into a
special fund of, the district for all lawful purposes of the district.
Unless and until the total assessed valuation of the taxable property
in a district exceeds the total assessed value of the taxable property
in the district as shown by the last equalized assessment roll
referred to in subdivision (a), all of the taxes levied and collected
upon the taxable property in the district shall be paid to the
respective affected taxing entities. When the district ceases to exist
pursuant to the adopted infrastructure financing plan, all moneys
thereafter received from taxes upon the taxable property in the
district shall be paid to the respective affected taxing entities as
taxes on all other property are paid.

SEC. 25.  

Section 53397.1 of the Government Code is amended
to read:

53397.1.  

The begin delete legislative body end delete begin insert public financing authority end insert may,
by majority vote, begin delete initiate proceedings to issue end delete begin insert authorize the end insert
begin insert issuance of end insert bonds pursuant to this chapter by adopting a resolution
begin delete stating its intent to issue the bonds end delete .

SEC. 26.  

Section 53397.2 of the Government Code is amended
to read:

53397.2.  

The resolution adopted pursuant to Section 53397.1
shall contain all of the following information:

(a) A description of the facilities to be financed with the
proceeds of the begin delete proposed end delete bond issue.

(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
begin delete proposed end delete bond issuance.

(c) The maximum interest rate and discount on the begin delete proposed end delete
bond issuance.

begin delete

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

end delete begin delete

(e)

end delete

begin insert (d) end insert  A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.

begin delete

(f)

end delete

begin insert (e) end insert  A finding that the amount necessary to pay the principal of,
and interest on, the begin delete proposed end delete bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision begin delete (e) end delete begin insert (d) end insert .

begin insert

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

end insert begin insert

(g)  The date the bonds will bear.

end insert begin insert

(h) The denomination of the bonds.

end insert begin insert

(i) The form of the bonds.

end insert begin insert

(j) The manner and execution of the bonds.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

SEC. 27.  

Section 53397.4 of the Government Code is repealed.

begin delete

53397.4.  

The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53397.1 once a day for at
least seven successive days in a newspaper published in the city
or county at least six days a week, or at least once a week for two
successive weeks in a newspaper published in the city or county
less than six days a week.

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

end delete

SEC. 28.  

Section 53397.5 of the Government Code is repealed.

begin delete

53397.5.  

The legislative body shall submit the proposal to issue
the bonds to the voters who reside within the district. The election
shall be conducted in the same manner as the election to create the
district pursuant to Section 53395. 20 and the two elections may
be consolidated.

end delete

SEC. 29.  

Section 53397.6 of the Government Code is repealed.

begin delete

53397.6.  

(a) The bonds may be issued if two-thirds of the
voters voting on the proposition vote in favor of issuing the bonds.

(b) If the voters approve the issuance of the bonds as provided
by subdivision (a), the legislative body shall proceed with the
issuance of the bonds by adopting a resolution which shall provide
for all of the following:

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

(2) The principal amount of the bonds, which shall be consistent
with the amount specified in subdivision (b) of Section 53397.2.

(3) The date the bonds will bear.

(4) The date of maturity of the bonds.

(5) The denomination of the bonds.

(6) The form of the bonds.

(7) The manner of execution of the bonds.

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

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

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

end delete

SEC. 30.  

Section 53397.7 of the Government Code is repealed.

begin delete

53397.7.  

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

end delete