BILL NUMBER: SB 614 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 18, 2014
AMENDED IN ASSEMBLY JUNE 16, 2014
AMENDED IN ASSEMBLY JUNE 9, 2014
AMENDED IN ASSEMBLY AUGUST 6, 2013
AMENDED IN ASSEMBLY JUNE 4, 2013
INTRODUCED BY Senator Wolk
( Coauthors: Assembly Members
Alejo and Waldron )
FEBRUARY 22, 2013
An act to amend , repeal, and add Section 56653 of the
Government Code, and to add and repeal Section 99.3
to of the Revenue and Taxation Code,
relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
SB 614, as amended, Wolk. Local government: jurisdictional
changes: infrastructure financing.
Existing
(1) Existing law, the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000,
provides the authority and procedures for the initiation, conduct,
and completion of changes of organization and reorganization of
cities and districts. The act requires a local agency or school
district that initiates proceedings for a change of local government
organization or reorganization by submitting a resolution of
application to a local agency formation commission to also submit a
plan for providing services within the affected territory, as
specified.
This bill would instead require, if a proposal for a change of
organization or reorganization is submitted to a local commission,
that the applicant submit a plan for providing services within the
affected territory. The bill would, territory
that, until January 1, 2025, in the case of a change of
organization or reorganization initiated by a local agency
and consented to by each affected agency, that includes a
disadvantaged, unincorporated community, authorize
authorizes a local agency to include in its resolution of
application a an annexation development
plan to improve or upgrade structures, roads, sewer or water
facilities, or other infrastructure to serve the disadvantaged,
unincorporated community and community. This
bill would authorize the local agency formation commission to
amend approve the proposal to include
the formation of a special district or reorganization of a
special district , as specified. This bill would require
an annexation plan to include certain information.
Existing
(2) Existing law requires a
county auditor, in the case of a jurisdictional change caused by the
formation of a district, to adjust the allocation of property tax
revenue pursuant to the agreement of local agencies whose service
area or service responsibility would be altered by the jurisdictional
change, as specified.
This bill would , until January 1, 2025, authorize a
local agency that files a petition resolution
of application for change of organization, and one or more
other local agencies that will improve or upgrade structures to serve
a disadvantaged, unincorporated community, to agree on a
an annexation development plan for financing
services and structures that may provide that taxes, levied upon
taxable property in the area included within the territory each year
by or for the benefit of the local agency and one or more other local
agencies that consent to the plan, be divided between the
respective affected local agencies and the special district.
as specified. This bill would require the plan
to include a date on which that division of taxes shall terminate,
and would allow the plan to provide for the issuance of indebtedness,
as specified. The bill would prohibit any plan developed under these
provisions from including any portion of
a redevelopment project area, as specified, or resulting in a
reduction of property tax revenues to school entities.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature to provide
additional options for financing infrastructure that can be
incorporated into the approval of considered by local
agencies and the local agency formation commission when evaluating
the proposal for an annexation of a disadvantaged,
unincorporated community.
SEC. 2. Section 56653 of the Government Code is amended to read:
56653. (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
(b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
(1) An enumeration and description of the services to be extended
to the affected territory.
(2) The level and range of those services.
(3) An indication of when those services can feasibly be extended
to the affected territory.
(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
(5) Information with respect to how those services will be
financed.
(c) Only in (1) In
the case of a change of organization or reorganization
initiated by a local agency and consented to by each
affected agency, that includes a disadvantaged,
unincorporated community as defined in Section 56033.5:
(1) A
56033.5, a local agency may include in its
resolution of application for change of organization or
reorganization a an annexation development
plan adopted pursuant to Section 99.3 of the Revenue and
Taxation Code to improve or upgrade structures, roads, sewer or water
facilities, or other infrastructure to serve the disadvantaged,
unincorporated community through the formation of a special district
or reorganization of a one or more existing
special district districts with
the consent of each special district's consent.
governing body.
(2) The annexation development plan submitted pursuant to this
subdivision shall include information that demonstrates that the
formation or reorganization of the special district will provide all
of the following:
(A) The necessary financial resources to improve or upgrade
structures, roads, sewer, or water facilities or other
infrastructure. The annexation development plan shall also clarify
the local entity that shall be responsible for the delivery and
maintenance of the services identified in the application.
(B) An estimated time frame for constructing and delivering the
services identified in the application.
(C) The governance, oversight, and long-term maintenance of the
services identified in the application after the initial costs are
recouped and the tax increment financing terminates.
(2)
(3) If a local agency includes a
an annexation development plan pursuant to
paragraph (1), this subdivision, a local agency
formation commission may amend approve
the proposal for a change of organization or reorganization to
include the formation of a special district or reorganization of a
special district with the special district's consent, including, but
not limited to, a community services district, municipal water
district, or sanitary district, to provide financing to improve or
upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community,
in conformity with the requirements of the principal act of the
district proposed to be formed and all required formation
proceedings.
(4) Pursuant to Section 56881, the commission shall include in its
resolution making determinations a description of the annexation
development plan, including, but not limited to, an explanation of
the proposed financing mechanism adopted pursuant to Section 99.3 of
the Revenue and Taxation Code, including, but not limited to, any
planned debt issuance associated with that annexation development
plan.
(d) Nothing in this section precludes This
section shall not preclude a local agency formation commission
from considering any other options or exercising its powers under
Section 56375.
(e) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.
SEC. 3. Section 56653 is added to the
Government Code , to read:
56653. (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
(b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
(1) An enumeration and description of the services to be extended
to the affected territory.
(2) The level and range of those services.
(3) An indication of when those services can feasibly be extended
to the affected territory.
(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
(5) Information with respect to how those services will be
financed.
(c) This section shall become operative on January 1, 2025.
SEC. 3. SEC. 4. Section 99.3 is
added to the Revenue and Taxation Code, to read:
99.3. (a) The plan for financing services that is included
in a petition with a resolution of
application for change of organization or reorganization filed
by a local agency and consented to by each affected agency,
pursuant to Section 56653 of the Government Code for a
disadvantaged, unincorporated community may include a
an annexation development plan that has
been adopted pursuant to this section.
subdivision (c).
(b) For purposes of this section, the following definitions apply:
(1) "Local agency" means a local agency as defined by subdivision
(a) of Section 95, and does not include any school entity as defined
in subdivision (f) of Section 95.
(2) "Affected "Consenting local
agency" means a local agency that has adopted a resolution of its
governing body consenting to the plan developed pursuant to
this section. annexation development plan.
(3) "Territory" means all or part of the land that is included in
the petition resolution of application
for change of organization or reorganization filed by the local
agency.
(4) "Certificate of completion" is defined as provided in Section
56020.5 of the Government Code.
(5) "Disadvantaged, unincorporated community" is defined as
provided in Section 56033.5 of the Government Code.
(c) A local agency that files a resolution of application for a
change of organization or reorganization, and one or more other
consenting local agencies that will improve or upgrade
structures to serve a disadvantaged, unincorporated community subject
to that petition, resolution of application,
may agree on a an annexation
development plan for financing services and structures pursuant
to this section.
(d) The annexation development plan agreed upon
pursuant to subdivision (c) may contain a provision that taxes levied
upon taxable property in the area included within the territory each
year by or for the benefit of the local agency and one or more other
consenting local agencies that consent to the
annexation development plan, be divided as follows:
(1) That portion of the taxes that would have been produced by the
rate upon which the tax is levied each year by or for each of the
affected consenting local agencies upon
the total sum of the assessed value of the taxable property in the
territory as shown upon the assessment roll used in connection with
the taxation of the property by the affected
consenting local agency, last equalized prior to the effective
date of the certification of completion, and that portion of taxes by
or for each school entity, shall be allocated to, and when collected
shall be paid to, the respective affected
consenting local agencies and school entities as taxes by or
for the affected consenting local
agencies and school entities on all property are paid.
(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan
annexation development plan adopted pursuant to subdivision (c)
for the city and each affected taxing entity
consenting local agency that has agreed to participate
pursuant to this section, in excess of the amount specified in
paragraph (1), shall be allocated to, and when collected shall be
paid into a special fund of a special district formed or reorganized
with the special district's consent pursuant to subdivision (c) of
Section 56653 of the Government Code that will finance the
infrastructure improvements , including, but not limited to,
water, wastewater, and stormwater systems and local streets, roads,
and sidewalks, to serve the disadvantaged, unincorporated
community. A consenting local agency may advance funds to the
special district that is formed or reorg anized pursuant
to paragraph (2) of subdivision (c) of Section 56653 of the
Government Code. The special district shall use those advanced funds
solely for the purposes specified in the annexation development plan
adopted pursuant to subdivision (c) and shall repay the consenting
local agency with revenue from the taxes received pursuant to this
subdivision.
(e) A An annexation development plan
adopted pursuant to this section subdivision
(c) shall specify a date upon which the division of taxes
described in subdivision (d) shall terminate.
(f) A An annexation development plan
adopted pursuant to this section subdivision
(c) may include a provision for the issuance of indebtedness.
Any indebtedness shall be issued in conformity with Articles 4.5
(commencing with Section 53506) and 5 (commencing with Section 53510)
of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government
Code or the principal act of the special district.
(g) Any An annexation development
plan adopted under this section pursuant to
subdivision (c) shall not result in a reduction of property tax
revenues allocated to any school entity as defined in subdivision
(f) of Section 95.
(h) Any plan adopted pursuant to this section shall not include
any portion of a redevelopment project area which is or has been
previously created pursuant to Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code.
(i) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.