BILL NUMBER: SB 33 INTRODUCED
BILL TEXT
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 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 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 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 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.
(d)
(e) 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 , disadvantaged communities, and
other development projects.
(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.
(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.
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 public and corporate governmental entity
separate and distinct from the city that established it
pursuant to this chapter for the sole purpose of financing
public facilities. An infrastructure financing district shall be
a "local agency" for purposes of Chapter 9 (commencing with Section
54950).
(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.
(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.
(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.
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
Integrated Financing District integrated
financing district 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 city
district .
(b) The legislative body public financing
authority may enter into an agreement with any affected taxing
entity providing for the construction of, or assistance in, financing
public facilities activities pursuant to
Section 53395.3 .
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 ,
and 53396.5 , and (4) may contribute to the cost of
maintaining facilities that are financed pursuant to subdivision (b)
. 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
Except as specifically provided in this section, a
district shall not finance routine maintenance, repair work, or
the costs of ongoing operation or providing services of any kind.
A district shall not compensate the members of the legislative
body of the city or the district for any activities undertaken
pursuant to this chapter.
(b) The district shall finance only structural or
nonstructural 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
pipes.
(3) Facilities and watershed lands used for the
collection and treatment of water for urban uses.
(4) Flood control levees and management
including levees, bypasses, dams, retention basins, and
drainage channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, and open
space , and habitat restoration .
(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) 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.
(c)
(e) 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.
(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.
SEC. 5. Section 53395.4 of the Government Code is amended to read:
53395.4. (a) A district may shall
not include provide 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
form of financial assistance to a vehicle dealer or a
big box retailer, or a business entity that sells or leases land to a
vehicle dealer or big box retailer, that is relocating from the
territorial jurisdiction of one local agency to the territorial
jurisdiction of another local agency, but within the same market
area, as those terms are used in Section 53084 .
(b) 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
new developments , rehabilitate, upgrade, or make
more sustainable those facilities .
(c) 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 53395.6 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 ,
or adoption of an infrastructure financing plan, including a
division of taxes thereunder, or an election pursuant to
this chapter shall be commenced within 30 days after the
enactment of the ordinance creating the district
date the legislative body adopted the resolution
adopting the infrastructure financing plan pursuant to Section
53395.23 53395.20 . 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 adoption of the resolution
pursuant to Section 53397.6 providing for the date the
legislative body adopted the resolution adopting the infrastructure
financing plan authorizing the issuance of the bonds
pursuant to Section 53397.1, 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 and development
proposed to be financed or assisted by the district
. The district may only finance public facilities authorized
by in accordance with Section 53395.3.
(c) State the need for the district and the goals the district
proposes to achieve.
(c)
(d) State that incremental property tax revenue from
the city and some or all affected taxing entities within the district
, if approved by resolution pursuant to Section 53395.19,
may be used to finance these public facilities
implement the plan adopted pursuant to Section 53395.14 .
(d)
(e) 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 and to each affected taxing
entity .
SEC. 11. Section 53395.12 of the Government Code is amended to
read:
53395.12. (a) The legislative body shall
direct the clerk to mail post a copy of
the resolution to each affected taxing entity
of intention to create the district in an easily identifiable
and accessible location on the legislative body's Internet
Web site .
(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.
SEC. 12. Section 53395.13 of the Government Code is amended to
read:
53395.13. After adopting the resolution pursuant to Section
53395.10 53395. 12 , the
legislative body shall send a copy of the resolution to the
public financing authority. Upon receipt of the resolution, the
public financing authority shall 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. After receipt of a copy of the resolution of
intention to establish a district, the The
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 required to
serve , or assistance, that benefits or serves the
development 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 If funding from affected
taxing entities is incorporated into the financing plan, 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
information:
(1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity , if any,
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 which
that 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 30 40 years from the date
on which the ordinance forming the district is adopted
the public financing authority adopted the resolution
adopting the infrastructure financing plan pursuant to Section
53395.23 53395 .20 .
(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 and additional expenses
related to the project or the developer of a project that
implements a transit priority 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) The goals the district proposes to achieve by financing public
facilities.
(g) The goals the district proposes to achieve by assisting the
development described in paragraph (8) of subdivision (d).
(h) If funding from affected taxing entities is included in the
plan, the creation of the public accountability committee, pursuant
to Section 53395.21.
SEC. 14. Section 53395.16 of the Government Code is amended to
read:
53395.16. The designated official shall consult with the
city and 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 legislative body public
financing authority 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 legislative
body public financing authority and object to
the adoption of the proposed plan by the legislative body
public financing authority .
SEC. 16. Section 53395.19 of the Government Code is amended to
read:
53395.19. (a) The legislative body public
financing authority shall not enact a resolution
proposing formation of a district and providing
approving a financing plan that provides 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 that is proposed to be
subject to division of taxes pursuant to Article 3 (commencing with
Section 53396) has been filed with the legislative body
public financing authority at or prior to the
time of the hearing.
(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.
(b)
(c) Nothing in this section shall be construed to
prevent the legislative body public financing
authority from amending its infrastructure financing plan and
adopting a resolution proposing formation of
forming the infrastructure financing district without
allocation of the tax revenues of any affected taxing entity
which that has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
(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.
(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.
SEC. 17. Section 53395.20 of the Government Code is amended to
read:
53395.20. (a) At the conclusion of the hearing , the
legislative body required by Section 53395.17, the
public financing authority may adopt a resolution
proposing adoption of adopting the
infrastructure financing plan, as modified, and approving the
formation of the infrastructure financing district in a manner
consistent with Section Sections 53395.10 and
53395.19, or it may abandon the proceedings. 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 The
public financing authority shall forward a copy of the plan to the
legislative body to review and approve the financing section of the
plan described in subdivision (d) of Section 53395.14. The
infrastructure financing plan shall not take effect until approved by
the legislative body .
(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.
(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:
(1) A summary of the district's expenditures.
(2) A description of the progress made towards the district's
adopted goals.
(3) An assessment of the status regarding completion of the
district's public works projects.
(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.
(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.
SEC. 18. Section 53395.21 of the Government Code is repealed.
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.
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.
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.
SEC. 21. Section 53395.23 of the Government Code is repealed.
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.
SEC. 22. Section 53395.24 of the Government Code is repealed.
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.
SEC. 23. Section 53395.25 of the Government Code is repealed.
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.
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 ordinance
resolution adopted pursuant to Section 53395.23
53395.20 to create the district, shall be
divided as follows:
(a) That portion of the taxes which that
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 ordinance
resolution adopted pursuant to Section 53395.23
53395.20 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 which that 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 legislative body public
financing authority may, by majority vote, initiate
proceedings to issue authorize the issuance of
bonds pursuant to this chapter by adopting a resolution
stating its intent to issue the bonds .
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 proposed bond issue.
(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
proposed bond issuance.
(c) The maximum interest rate and discount on the
proposed bond issuance.
(d) The date of the election on the proposed bond issuance and the
manner of holding the election.
(e)
(d) 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.
(f)
(e) A finding that the amount necessary to pay the
principal of, and interest on, the proposed bond
issuance will be less than, or equal to, the amount determined
pursuant to subdivision (e) (d) .
(f) The issuance of the bonds in one or more series.
(g) The date the bonds will bear.
(h) The denomination of the bonds.
(i) The form of the bonds.
(j) The manner and execution of the bonds.
(k) The medium of payment in which the bonds are payable.
(l) The place or manner of payment and any requirements for
registration of the bonds.
(m) The terms or call of redemption, with or without premium.
SEC. 27. Section 53397.4 of the Government Code is repealed.
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.
SEC. 28. Section 53397.5 of the Government Code is repealed.
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.
SEC. 29. Section 53397.6 of the Government Code is repealed.
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.
SEC. 30. Section 53397.7 of the Government Code is repealed.
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.