SB 692, as amended, Hancock. Local government: community facilities districts.
(1) The Mello-Roos Community Facilities Act of 1982 authorizes the legislative bodies of 2 or more local agencies, at any time prior to the adoption of the resolution of formation creating a community facilities district or a resolution of change to alter a district, or a resolution or resolutions authorizing issuance of bonds, to enter into a joint community facilities agreement or into a joint exercise of powers agreement, pursuant to the Joint Exercise of Powers Act, to exercise any power authorized by the Mello-Roos Community Facilities Act of 1982 with respect to the community facilities district being created or changed if the legislative body of each entity adopts a resolution declaring that the joint agreement would be beneficial to the residents of that entity.
This bill would specify that this authorization is not intended to limit the ability of a joint powers authority created pursuant to the Joint Exercise of Powers Act to exercise powers authorized by the Marks-Roos Local Bond Pooling Act of 1985.
(2) Under the Mello-Roos Community Facilities Act of 1982, after a community facilities district has been created and authorized to levy specified special taxes, the legislative body may, by ordinance, levy the special taxes at the rate and apportion them in the manner specified in the resolution forming the community facilities district. The act also authorizes the annexation of territory to the community facilities district by unanimous approval of the owner or owners following the formation of that district.
This bill would authorize the legislative body, in the case of a community facilities district that includes property proposed to be annexed to the district at a future date by unanimous approval, to, by ordinance, provide for the imposition of special taxes on that property, as specified.
(3) The Mello-Roos Community Facilities Act of 1982 authorizes the legislative body to, by resolution, designate a portion or portions of the district as one or more improvement areas for purposes of the financing of, or contributing to the financing of, specified public facilities, as specified, and following the designation, authorizes all proceedings for purposes of a bond election and for the purpose of levying special taxes for payment of the bonds, or for any other change, to apply only to the improvement area for those specified facilities.
This bill would authorize the legislative body to, designate a parcel or parcels of property included in a community facilities district by unanimous approval, as specified, as an improvement area without additional hearings or procedures, as specified. The bill would specify that following the designation, all proceedings for approval of the appropriations limit, the rate and method of apportionment and manner of collection of special taxes, and the authorization to incur bonded indebtedness for the parcel or parcels applies only within the improvement area.
(4) The Mello-Roos Community Facilities Act of 1982 authorizes the legislative body to incur bonded indebtedness, as specified, and authorizes any refunding bonds issued to be exchanged for the bonds to be refunded on such basis as the legislative body determines is for the benefit of the district. The legislative body is also authorized to sell the refunding bonds at public or private sale, and to place the proceeds of any sale of refunding bonds for cash in the “refunding fund” in the treasury of the local agency. The funds in the “revolving account” are required to be secured and may be invested in accordance with any other laws applicable to the funds of the local agency. Existing law requires the proceeds and investments in the “refunding fund” at the time of issuance of the refunding bonds, as certified by a certified public accountant, to be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity and the designated costs of issuance of the refunding bonds, or to pay the principal, interest, and redemption premiums, if any, on the refunding bonds prior to the maturity of the bonds to be refunded or prior to a designated date or dates before the maturity of the bonds to be refunded, the principal and any redemption premiums due on the refunded bonds at maturity or upon that designated date or dates, and the designated costs of issuance of the refunding bonds.
This bill would, with regard to the proceeds and any other cash in the “refunding fund,” require those funds to be held uninvested or invested in noncallable obligations of, or obligations guaranteed as to principal and interest by, the United States of America or any agency or instrumentality thereof, when those obligations are backed by the full faith and credit of the United States of America, and requires those proceeds to be in an amount sufficient to pay the principal, interest, and redemption premiums, if any, on the refunded bonds as they become due or at designated dates prior to maturity, in which case certification of a certified public accountant is not required.
(5) The Joint Exercise of Powers Act authorizes the legislative or other governing bodies of 2 or more public agencies to jointly exercise by agreement any power common to the contracting parties, as specified, and authorizes that joint powers authority to exercise various powers, including, among others, the power to take title to, and sell by installment sale or otherwise, lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in lands that are located within the state that the authority determines are necessary or convenient for the financing of public capital improvements, or any portion thereof.
This bill would additionally authorize the joint powers authority to lease lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and other interests in lands that are located within the state that the authority determines are necessary or convenient for the financing of public capital improvements, or any portion thereof.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 6588 of the Government Code is amended
In addition to other powers specified in an agreement
4pursuant to Article 1 (commencing with Section 6500) and Article
52 (commencing with Section 6540), the authority may do any or
6all of the following:
P5 1(a) Adopt bylaws for the regulation of its affairs and the conduct
2of its business.
3(b) Sue and be sued in its own name.
4(c) Issue bonds, including, at the option of the authority, bonds
5bearing interest, to pay the cost of any public capital improvement,
6working capital, or liability or other insurance program. In addition,
7for any purpose for which an authority may execute and deliver
8or cause to be executed and delivered certificates of participation
9in a lease or installment sale agreement with any public or private
10entity, the authority, at its option, may issue or cause to be issued
11bonds, rather than certificates of participation, and enter into a
12loan agreement with the public or private entity.
13(d) Engage the services of private consultants to render
14professional and technical assistance and advice in carrying out
15the purposes of this article.
16(e) As provided by applicable law, employ and compensate
17bond counsel, financial consultants, and other advisers determined
18necessary by the authority in connection with the issuance and sale
19of any bonds.
20(f) Contract for engineering, architectural,
accounting, or other
21services determined necessary by the authority for the successful
22development of a public capital improvement.
23(g) Pay the reasonable costs of consulting engineers, architects,
24accountants, and construction, land-use, recreation, and
25environmental experts employed by any sponsor or participant if
26the authority determines those services are necessary for the
27successful development of public capital improvements.
28(h) Take title to, sell by installment sale or otherwise, or lease
29lands, structures, real or personal property, rights, rights-of-way,
30franchises, easements, and other interests in lands that are located
31within the state that the authority determines are necessary or
32convenient for the financing of public capital improvements, or
33any portion thereof.
34(i) Receive and accept from any source, loans, contributions,
35or grants, in either money, property, labor, or other things of value,
36for, or in aid of, the construction financing, or refinancing of public
37capital improvement, or any portion thereof or for the financing
38of working capital or insurance programs, or for the payment of
39the principal of and interest on bonds if the proceeds of those bonds
40are used for one or more of the purposes specified in this section.
P6 1(j) Make secured or unsecured loans to any local agency in
2connection with the financing of capital improvement projects,
3working capital or insurance programs in accordance with an
4agreement between the authority and the local agency. However,
5no loan shall exceed the total cost of the public capital
6improvements, working capital or insurance needs of the local
7agency as determined by the local agency and by the authority.
8(k) Make secured or unsecured loans to any local agency in
9accordance with an agreement between the authority and the local
10agency to refinance indebtedness incurred by the local agency in
11connection with public capital improvements undertaken and
13(l) Mortgage all or any portion of its interest in public capital
14improvements and the property on which any project is located,
15whether owned or thereafter acquired, including the granting of a
16security interest in any property, tangible or intangible.
17(m) Assign or pledge all or any portion of its interests in
18mortgages, deeds of trust, indentures of mortgage or trust, or
19similar instruments, notes, and security interests in property,
20tangible or intangible, of a local agency to which the authority has
21made loans, and the revenues therefrom, including payment or
22income from any interest owned or held by the authority, for the
23benefit of the holders of bonds issued to finance public capital
24improvements. The pledge of moneys, revenues, accounts, contract
25rights, or rights to payment of any kind made by or to the authority
26pursuant to the authority granted in this part shall be valid and
27binding from the time the pledge is made for the benefit of the
28pledgees and successors thereto, against all parties irrespective of
29whether the parties have notice of the claim.
30(n) Lease the public capital improvements being financed to a
31local agency, upon terms and conditions that the authority deems
32proper; charge and collect rents therefor; terminate any lease upon
33the failure of the lessee to comply with any of the obligations of
34the lease; include in any lease provisions that the lessee shall have
35options to renew the lease for a period or periods, and at rents as
36determined by the authority; purchase or sell by an installment
37agreement or otherwise any or all of the public capital
38improvements; or, upon payment of all the indebtedness incurred
39by the authority for the financing or refinancing of the public
P7 1capital improvements, the authority may convey any or all of the
2project to the lessee or lessees.
3(o) Charge and apportion to local agencies that benefit from its
4services the administrative costs and expenses incurred in the
5exercise of the powers authorized by this article. These fees shall
6be set at a rate sufficient to recover, but not exceed, the authority’s
7costs of issuance and administration. The fee charged to each local
8obligation acquired by the pool shall not exceed that obligation’s
9proportionate share of those costs. The level of these fees shall be
10disclosed to the California Debt and Investment Advisory
11Commission pursuant to Section 6599.1.
12(p) Issue, obtain, or aid in obtaining, from any department or
13agency of the United States or of the state, or any private company,
14any insurance or guarantee to, or for, the payment or repayment
15of interest or principal, or both, or any part thereof, on any loan,
16lease, or obligation or any instrument evidencing or securing the
17same, made or entered into pursuant to this article.
18(q) Notwithstanding any other provision of this article, enter
19into any agreement, contract, or any other instrument with respect
20to any insurance or guarantee; accept payment in the manner and
21form as provided therein in the event of default by a local agency;
22and assign any insurance or guarantee that acts as security for the
24(r) Enter into any agreement or contract, execute any instrument,
25and perform any act or thing necessary, convenient, or desirable
26to carry out any power authorized by this article.
27(s) Invest any moneys held in reserve or sinking funds, or any
28moneys not required for immediate use or disbursement, in
29obligations that are authorized by law for the investment of trust
31(t) At the request of affected local agencies, combine and pledge
32revenues to public capital improvements for repayment of one or
33more series of bonds issued pursuant to this article.
34(u) Delegate to any of its individual parties or other responsible
35individuals the power to act on its behalf subject to its general
36direction, guidelines, and oversight.
37(v) Purchase, with the proceeds of its bonds or its revenue, bonds
38issued by any local agency at public or negotiated sale. Bonds
39purchased pursuant to this subdivision may be held by the authority
40or sold to public or private purchasers at public or negotiated sale,
P8 1in whole or in part, separately or together with other bonds issued
2by the authority.
3(w) Purchase, with the proceeds of its bonds or its revenue, VLF
4receivables sold to the authority pursuant to Section 6588.5. VLF
5receivables so purchased may be pledged to the payment of bonds
6issued by the authority or may be resold to public or private
7purchasers at public or negotiated sale, in whole or in part,
8separately or together with other VLF receivables purchased by
10(x) (1) Purchase, with the proceeds of its bonds or its revenue,
11Proposition 1A receivables pursuant to Section 6588.6. Proposition
121A receivables so purchased may be pledged to the payment of
13bonds issued by the authority or may be resold to public or private
14purchasers at public or negotiated sales, in whole or in part,
15separately or together with other Proposition 1A receivables
16purchased by the authority.
17(2) (A) All entities subject to a
reduction of ad valorem property
18tax revenues required under Section 100.06 of the Revenue and
19Taxation Code pursuant to the suspension set forth in Section
20100.05 of the Revenue and Taxation Code shall be afforded the
21opportunity to sell their Proposition 1A receivables to the authority.
22(B) If these entities offer Proposition 1A receivables to the
23authority for purchase and duly authorize the sale of the Proposition
241A receivable pursuant to documentation approved by the
25authority, the authority shall purchase all Proposition 1A
26receivables so offered to the extent it can sell bonds therefor. If
27the authority does not purchase all Proposition 1A receivables
28offered, it shall purchase a pro rata share of each entity’s offered
29Proposition 1A receivables.
30(C) The authority may
establish a deadline, no earlier than
31November 3, 2009, by which these entities shall offer their
32Proposition 1A receivables for sale to the authority and complete
33the application required by the authority.
34(3) For purposes of meeting costs incurred in performing its
35duties relative to the purchase and sale of Proposition 1A
36receivables, the authority shall be authorized to charge a fee to
37each entity from which it purchases a Proposition 1A receivable.
38The fee shall be computed based on the percentage value of the
39Proposition 1A receivable purchased from each entity, in relation
40to the value of all Proposition 1A receivables purchased by the
P9 1authority. The amount of the fee shall be paid from the proceeds
2of the bonds and shall be included in the principal amount of the
4(4) Terms and conditions of any and all fees and expenses
5charged by the authority, or those it contracts with, and the terms
6and conditions of sales of Proposition 1A receivables and bonds
7issued pursuant to this subdivision, including the terms of optional
8early redemption provisions, if any, shall be approved by the
9Treasurer and the Director of Finance, who shall not unreasonably
10withhold their approval. The aggregate principal amount of all
11bonds issued pursuant to this subdivision shall not exceed two
12billion two hundred fifty million dollars ($2,250,000,000), and the
13rate of interest paid on those bonds shall not exceed 8 percent per
14annum. The authority shall exercise its best efforts to obtain the
15lowest cost financing possible. Any and all premium obtained shall
16be used for either of the following:
17(A) Applied to pay the costs of issuance of the bonds.
18(B) Deposited in a trust account that is pledged to bondholders
19and used solely for the payment of interest on, or for repayment
20of, the bonds.
21(5) (A) In connection with any financing backed by Proposition
221A receivables, the Treasurer may retain financial advisors, legal
23counsel, and other consultants to assist in performing the duties
24required by this chapter and related to that financing.
25(B) Notwithstanding any other law, none of the following shall
26apply to any agreements entered into by the Treasurer pursuant to
27subparagraph (A) in connection with any Proposition 1A financing:
28(i) Section 11040 of the Government Code.
29(ii) Section 10295 of the Public Contract Code.
30(iii) Article 3 (commencing with Section 10300) and Article 4
31(commencing with Section 10335) of, Chapter 2 of Part 2 of
32Division 2 of the Public Contract Code, except for the authority
33of the Department of Finance under Section 10336 of the Public
34Contract Code to direct a state agency to transmit to it a contract
35for review, and except for Section 10348.5 of the Public Contract
37(C) Any costs incurred by the Treasurer in connection with any
38Proposition 1A financing shall be reimbursed out of the proceeds
39of the financing.
P10 1(y) Set any other terms and conditions on any purchase or sale
2pursuant to this section as it deems by resolution to be necessary,
3appropriate, and in the public interest, in furtherance of the
4purposes of this article.
A community facilities district may be established under
8this chapter to finance any one or more of the following types of
9services within an area:
10(a) Police protection services, including, but not limited to,
11criminal justice services. However, criminal justice services shall
12be limited to providing services for jails, detention facilities, and
14(b) Fire protection and suppression services, and ambulance
15and paramedic services.
16(c) Recreation program services, library services, maintenance
17services for elementary and secondary schoolsites and structures,
18and the operation and maintenance of museums and cultural
19facilities. A special tax may be levied for any of the services
20specified in this subdivision only upon approval of the registered
21voters as specified in subdivision (b) of Section 53326. An election
22to enact a special tax for recreation program services, library
23services, and the operation and maintenance of museums and
24cultural facilities may be conducted pursuant to subdivision (c) of
26(d) Maintenance and lighting of parks, parkways, streets, roads,
27and open space.
28(e) Flood and storm protection services, including, but not
29limited to, the operation and maintenance of storm drainage
30systems, plowing and removal of snow, and sandstorm protection
32(f) Services with respect to removal or remedial action for the
33cleanup of any hazardous substance released or threatened to be
34released into the environment. As used in this subdivision, the
35terms “remedial action” and “removal” shall have the meanings
36set forth in Sections 25322 and 25323, respectively, of the Health
37and Safety Code, and the term “hazardous substance” shall have
38the meaning set forth in Section 25281 of the Health and Safety
39Code. Community facilities districts shall provide the State
40Department of Health Services and local health and building
P11 1departments with notification of any cleanup activity pursuant to
2this subdivision at least 30 days prior to commencement of the
8A community facilities district tax approved by vote of the
9landowners of the district may only finance the services authorized
10in this section to the extent that they are in addition to those
11provided in the territory of the district before the district was
12created. The additional services
begin delete mayend delete not supplant services
13already available within that territory when the district was created.
begin delete mayend delete not be issued pursuant to this chapter to fund
15any of the services specified in this section, although bonds may
16be issued to fund capital facilities to be used in providing these
Section 53316.2 of the
Government Code is amended
(a) A community facilities district may finance
22facilities to be owned or operated by a public agency other than
23the agency that created the district, or services to be provided by
24a public agency other than the agency that created the district, or
25any combination, only pursuant to a joint community facilities
26agreement or a joint exercise of powers agreement adopted pursuant
27to this section. A joint community facilities agreement or a joint
28exercise of powers agreement with a state or federal agency shall
29not be required if the local agency that created the district is the
30agency that would, in the absence of the district, enter into an
31agreement with the state or federal agency for the provision of the
32facilities or services, or if the local agency that created the district
33enters into a joint agreement with the public agency that would,
34in the absence of the district, enter into an agreement with the state
35or federal agency for the provision of the facilities or services.
36(b) At any time prior to the adoption of the resolution of
37formation creating a community facilities district or a resolution
38of change to alter a district, or a resolution or resolutions
39authorizing issuance of bonds pursuant to Section 53356, the
40legislative bodies of two or more local agencies may enter into a
P12 1joint community facilities agreement pursuant to this section and
2Sections 53316.4 and 53316.6 or into a joint exercise of powers
3agreement pursuant to the Joint Exercise of Powers Act (Chapter
45 (commencing with Section 6500) of Division 7 of Title 1) to
5exercise any power authorized by this chapter with respect to the
6community facilities district being created or changed if the
7legislative body of each entity adopts a resolution declaring that
8 the joint agreement would be beneficial to the residents of that
9entity. This subdivision shall not be construed to limit the ability
10of a joint powers authority created pursuant to the Joint Exercise
11of Powers Act to exercise the powers authorized by the Joint
12Exercise of Powers Act.
13(c) Notwithstanding the Joint Exercise of Powers Act, a
14contracting party may use the proceeds of any special tax or charge
15levied pursuant to this chapter or, in the case of facilities, of any
16bonds or other indebtedness issued pursuant to this chapter to
17provide facilities or services which that contracting party is
18otherwise authorized by law to provide, even though another
19contracting party does not have the power to provide those facilities
subdivision (b), nothing in this section
22shall prevent entry into or amendment of a joint community
23facilities agreement or a joint exercise of powers agreement at any
24time, if the new agreement or amendment is necessary, as
25determined by the legislative body, for either of the following
27(1) To allow an orderly transition of governmental facilities and
28finances in the case of any change in governmental organization
29approved pursuant to the Cortese-Knox-Hertzberg Local
30Government Reorganization Act of 2000 (Division 3 (commencing
31with Section 56000) of Title 5) or other law governing the
32reorganization of any agency that is a party to the agreement.
33(2) To allow participation in the agreement by a state or federal
34agency, including, but not limited to, the California Department
35of Transportation. Participation in an agreement by a state or
36federal agency is purely optional.
37(e) Notwithstanding any other provision of this chapter, no local
38agency that is party to a joint exercise of powers agreement or
39joint community facilities agreement shall have primary
40responsibility for formation of a district, or for an extension of
P13 1authorized facilities and services or a change in special taxes
2pursuant to Article 3 (commencing with Section 53330), unless
3that local agency is one or more of the following:
4(1) A city, a county, or a city and county.
5(2) An agency created pursuant to a joint powers agreement that
6is separate from the parties to the agreement, is responsible for the
7administration of the agreement, and is subject to the notification
8requirement of Section 6503.5.
9(3) An agency that is reasonably expected to have responsibility
10for providing facilities or services to be financed by a larger share
11of the proceeds of special taxes and bonds of the district or districts
12created or changed pursuant to the joint exercise of powers
13agreement or the joint community facilities agreement than any
14other local agency.
Unless the context otherwise requires, the definitions
18contained in this article shall govern the construction of this
20(a) “Clerk” means the clerk of the legislative body of a local
22(b) “Community facilities district” means a legally constituted
23governmental entity established pursuant to this chapter for the
24sole purpose of financing facilities and services.
25(c) “Cost” means the expense of constructing or purchasing the
26public facility and of related land, right-of-way, easements,
27including incidental expenses, and the cost of providing authorized
28services, including incidental expenses.
29(d) “Debt” means any binding obligation to pay or repay a sum
30of money, including obligations in the form of bonds, certificates
31of participation, long-term leases, loans from government agencies,
32or loans from banks, other financial institutions, private businesses,
33or individuals, or long-term contracts.
34(e) “Incidental expense” includes all of the following:
35(1) The cost of planning and designing public facilities to be
36financed pursuant to this chapter, including the cost of
37environmental evaluations of those facilities.
38(2) The costs associated with the creation of the district, issuance
39of bonds, determination of the amount of taxes, collection of taxes,
P14 1payment of taxes, or costs otherwise incurred in order to carry out
2the authorized purposes of the district.
3(3) Any other expenses incidental to the construction,
4completion, and inspection of the authorized work.
5(f) “Landowner” or “owner of land” means any person shown
6as the owner of land on the last equalized assessment roll or
7otherwise known to be the owner of the land by the legislative
8body. The legislative body has no obligation to obtain other
9information as to the ownership of the land, and its determination
10of ownership shall be final and conclusive for the purposes of this
11chapter. A public agency is not a landowner or owner of land for
12purposes of this chapter, unless one of the following exists:
13(1) The land owned by a public agency would be subject to a
14special tax pursuant to Section 53340.1.
15(2) The public agency has acquired
the property by purchase or
16negotiation in connection with foreclosure of a special tax lien and
17it is intended that the property will be transferred to private
19(3) The public agency states in the proceedings that its land is
20intended to be transferred to private ownership and provides in the
21proceedings that its land will be subject to the special tax on the
22same basis as private property within the district and affirmatively
23waives any defense based on the fact of public ownership, to any
24action to foreclose on the property in the event of nonpayment of
25the special tax.
26(4) The land owned by a public agency is within the territory
27of a military base that is closed or is being closed.
28(g) “Legislative body” means the legislative body or governing
29board of any local agency.
30(h) “Local agency” means any city or county, whether general
31law or chartered, special district, school district, joint powers entity
32created pursuant to Chapter 5 (commencing with Section 6500)
33of Division 7 of Title 1, redevelopment agency, or any other
34municipal corporation, district, or political subdivision of the state.
35(i) “Rate” means a single rate of tax or a schedule of rates.
36(j) “Services” means the provision of categories of services
37identified in Section 53313. “Services” includes the performance
38by employees of functions, operations, maintenance, and repair
39activities. “Services” does not include activities or facilities
40identified in Section 53313.5.
(a) As an alternate and independent procedure for
6forming a community facilities district, the legislative body may
7form a community facilities district that initially consists solely
8of territory proposed for annexation to the community facilities
9district in the future, with the condition that a parcel or parcels
10within that territory may be annexed to the community facilities
11district and subjected to the special tax only with the unanimous
12approval of the owner or owners of the parcel or parcels at the
13time that the parcel or parcels are annexed. In that case, the
14legislative body shall follow the procedures set forth in this article
15for the formation of a community facilities district, with the
17(1) The legislative body shall not be
obligated to specify the
18rate or rates of special tax in the resolution of intention or the
19resolution of formation, provided that both of the following are
21(A) The resolution of intention and the resolution of formation
22include a statement that the rate shall be established in an amount
23required to finance or refinance the authorized improvements and
24to pay the district’s administrative expenses.
25(B) The maximum rate of special tax applicable to a parcel or
26parcels shall be specified in the unanimous approval described in
27this section relating to the parcel or parcels.
36 In lieu of approval pursuant to an election held in accordance
37with the procedures set forth in Sections 53326, 53327, 53327.5,
38and 53328, the appropriations limit for the community facilities
39district, the applicable rate of the special tax and the method of
40apportionment and manner of collection of that tax, and the
P16 1authorization to incur bonded indebtedness for the community
2facilities district shall be specified and be approved by the
3unanimous approval of the owner or owners of each parcel or
4parcels at the time that the parcel or parcels are annexed to the
5community facilities district. No additional hearings or procedures
6are required, and the unanimous approval shall be deemed to
7constitute a unanimous vote in favor of the appropriations limit
8for the community facilities district, the authorization to levy the
9special tax on the parcel or parcels, and the authorization to incur
10bonded indebtedness for the community facilities district.
12 Notwithstanding Section 53324, this paragraph establishes
13the applicable protest provisions in the event a local agency forms
14a community facilities district pursuant to the procedures set forth
15in this section. If 50 percent or more of the registered voters, or
16six registered voters, whichever is more, residing within the
17territory proposed to be annexed to the community facilities district
18in the future, or if the owners of one-half or more of the area of
19land proposed to be annexed in the future and not exempt from
20the special tax, file written protests against establishment of the
21community facilities district, and protests are not withdrawn so as
22to reduce the protests to less than a majority, no further proceedings
23to form the community facilities district shall be undertaken for a
24period of one year from the date of decision of the legislative body
25on the issues discussed at the hearing. If the majority protests of
26the registered voters or of the landowners are only against the
27furnishing of a specified type or types of facilities or services
28within the district, or against levying a specified special tax, those
29types of facilities or services or the specified special tax shall be
30eliminated from the resolution of formation.
32 The legislative body shall not record a notice of special tax
33lien against any parcel or parcels in the community facilities district
34until the owner or owners of the parcel or parcels have given their
35unanimous approval of the parcel’s or parcels’ annexation to the
36community facilities district, at which time the notice of special
37tax lien shall be recorded against the parcel or parcels as set forth
38in Section 53328.3.
39(b) Notwithstanding the provisions of Section 53340, after
40 adoption of the resolution of formation for a community facilities
P17 1district described in subdivision (a), the legislative body may, by
2ordinance, provide for the levy of the special taxes on parcels that
3will annex to the community facilities district at the rate or rates
4to be approved unanimously by the owner or owners of each parcel
5or parcels to be annexed to the community facilities district and
6for apportionment and collection of the special taxes in the manner
7specified in the resolution of formation. No further ordinance shall
8be required even though no parcels may then have annexed to the
9community facilities district.
10(c) The local agency may bring an action to determine the
11validity of any special taxes levied pursuant to this chapter and
12authorized pursuant to the procedures set forth in this section
13pursuant to Chapter 9 (commencing with Section 860) of Title 10
14of Part 2 of the Code of Civil Procedure. Notwithstanding Section
15 53359, if an action is brought by an interested person pursuant to
16Section 863 of the Code of Civil Procedure to determine the
17validity of any special taxes levied against a parcel pursuant to
18this chapter and authorized pursuant to the procedures set forth in
19this section, the action shall be brought pursuant to Chapter 9
20(commencing with Section 860) of Title 10 of Part 2 of the Code
21of Civil Procedure, but shall, notwithstanding the time limits
22specified in Section 860 of the Code of Civil Procedure, be
23commenced within 15 days after the date on which the notice of
24special tax lien is recorded against the parcel. Any appeal from a
25judgment in any action or proceeding described in this subdivision
26shall be commenced within 30 days after entry of judgment.
27(d) A community facilities district formed pursuant to this
28section may only finance facilities pursuant to subdivision (l) of
30(e) In connection with formation of a community facilities
31district and annexation of a parcel or parcels to the community
32facilities district pursuant to this section, and the conduct of an
33election on the proposition to authorize bonded indebtedness
34pursuant to the alternate procedures set forth in Section 53355.5,
35the local agency may, without additional hearings or procedures,
36designate a parcel or parcels as an improvement area within the
37community facilities district. After the designation of a parcel or
38parcels as an improvement area, all proceedings for approval of
39the appropriations limit, the rate and method of apportionment and
40manner of collection of special tax and the authorization to incur
P18 1bonded indebtedness for the parcel or parcels shall apply only to
2the improvement area.
Section 53340 of the
Government Code is amended
(a) After a community facilities district has been
21created and authorized to levy specified special taxes pursuant to
22Article 2 (commencing with Section 53318), Article 3
23(commencing with Section 53330), or Article 3.5 (commencing
24with Section 53339), the legislative body may, by ordinance, levy
25the special taxes at the rate and apportion them in the manner
26specified in the resolution adopted pursuant to Article 2
27(commencing with Section 53318), Article 3 (commencing with
28Section 53330), or Article 3.5 (commencing with Section 53339).
29After creation of a community facilities district that includes
30territory proposed for annexation in the future by unanimous
31approval as described in subdivision (b) of Section 53339.3, the
32legislative body may, by ordinance, provide for the levy of special
33taxes on parcels that will be annexed to the community facilities
34district at the rate or rates to be approved unanimously by the
35owner or owners of each parcel or parcels to be annexed to the
36community facilities district and for apportionment and collection
37of the special taxes in the manner specified in the resolution of
39(b) The legislative body may provide, by resolution, for the levy
40of the special tax in the current tax year or future tax years at the
P19 1same rate or at a lower rate than the rate provided by the ordinance,
2if the resolution is adopted and a certified list of all parcels subject
3to the special tax levy including the amount of the tax to be levied
4on each parcel for the applicable tax year, is filed by the clerk or
5other official designated by the legislative body with the county
6auditor on or before the 10th day of August of that tax year. The
7clerk or other official designated by the legislative body may file
8the certified list after the 10th of August but not later than the 21st
9of August if the clerk or other official obtains prior written consent
10of the county auditor.
11(c) Properties or entities of the state, federal, or local
12governments shall, except for properties that a local agency is a
13landowner of within the meaning of subdivision (f) of Section
1453317, or except as otherwise provided in Section 53317.3, be
15exempt from the special tax. No other properties or entities are
16exempt from the special tax unless the properties or entities are
17expressly exempted in the resolution of formation to establish a
18district adopted pursuant to Section 53325.1 or in a resolution of
19consideration to levy a new special tax or special taxes or to alter
20the rate or method of apportionment of an existing special tax as
21provided in Section 53334.
22(d) The proceeds of any special tax may only be used to pay,
23in whole or part, the cost of providing public facilities, services,
24and incidental expenses pursuant to this chapter.
25(e) The special tax shall be collected in the same manner as
26ordinary ad valorem property taxes are collected and shall be
27subject to the same penalties and the same procedure, sale, and
28lien priority in case of delinquency as is provided for ad valorem
29taxes, unless another procedure has been authorized in the
30resolution of formation establishing the district and adopted by
31the legislative body.
32(f) (1) Notwithstanding subdivision (e), the legislative body of
33the district may waive all or any specified portion of the
34delinquency penalties and redemption penalties if it makes all of
35the following determinations:
36(A) The waivers shall apply only to parcels delinquent at the
37time of the determination.
38(B) The waivers shall be available only with respect to parcels
39for which all past due and currently due special taxes and all other
P20 1costs due are paid in full within a limited period of time specified
2in the determination.
3(C) The waivers shall be available only with respect to parcels
4sold or otherwise transferred to new owners unrelated to the owner
5responsible for the delinquency.
6(D) The waivers are in the best interest of the debtholders.
7(2) The charges with penalties to be waived shall be removed
8 from the tax roll pursuant to Section 53356.2 and local
9administrative procedures, and any distributions made to the district
10prior to collection pursuant to Chapter 3 (commencing with Section
114701) of Part 8 of Division 1 of the Revenue and Taxation Code
12shall be repaid by the district prior to granting the waiver.
13(g) The tax collector may collect the special tax at intervals as
14specified in the resolution of formation, including intervals
15different from the intervals determining when the ordinary ad
16valorem property taxes are collected. The tax collector may deduct
17the reasonable administrative costs incurred in collecting the special
19(h) All special taxes levied by a community facilities district
20shall be secured by the lien imposed pursuant to Section 3115.5
21of the Streets and Highways Code. This lien shall be a continuing
22lien and shall secure each levy of special taxes. The lien of the
23special tax shall continue in force and effect until the special tax
24obligation is prepaid, permanently satisfied, and canceled in
25accordance with Section 53344 or until the special tax ceases to
26be levied by the legislative body in the manner provided in Section
2753330.5. If any portion of a parcel is encumbered by a lien pursuant
28to this chapter, the entirety of the parcel shall be encumbered by
Section 53350 of the
Government Code is amended
(a) For purposes of financing of, or contributing to the
34financing of, specified public facilities, the legislative body may
35by resolution designate a portion or portions of the district as one
36or more improvement areas. An area shall be known as
37“Improvement Area No. ____” of “Community Facilities District
38____.” After the designation of an improvement area, all
39proceedings for purposes of a bond election and for the purpose
40of levying special taxes for payment of the bonds, or for any other
P21 1change pursuant to Article 3 (commencing with Section 53330),
2shall apply only to the improvement area for those specified
connection with the annexation by unanimous approval
5to a community facilities district of a parcel that was included in
6territory proposed for annexation in the future to the community
7facilities district, as described in Section 53329.6, the local agency
8may, without additional hearings or procedures, designate a parcel
9or parcels as an improvement area within the community facilities
10district. After the designation of a parcel or parcels as an
11improvement area, all proceedings for approval of the
12appropriations limit, the rate and method of apportionment and
13manner of collection of special taxes, and the authorization to incur
14bonded indebtedness for the parcel or parcels shall apply only to
15the improvement area.
Section 53363.9 of the
Government Code is amended
(a) The proceeds and investments in the “refunding
39fund” shall be in an amount sufficient to meet either the
40requirements of paragraph (1) or paragraph (2) at the time of
P22 1issuance of the refunding bonds, as certified by a certified public
2accountant licensed to practice in this state.
3(1) The proceeds and investments, together with any interest or
4other gain to be derived from any such investment, shall be in an
5amount sufficient to pay the principal, interest, and redemption
6premiums, if any, on the refunded bonds as they become due or
7at designated dates prior to maturity and the designated costs of
8issuance of the refunding bonds.
9(2) The proceeds and investments, together with any interest or
10other gain to be derived from any such investment, shall be in an
11amount sufficient to pay the principal, interest, and redemption
12premiums, if any, on the refunding bonds prior to the maturity of
13the bonds to be refunded or prior to a designated date or dates
14before the maturity of the bonds to be refunded, the principal and
15any redemption premiums due on the refunded bonds at maturity
16or upon that designated date or dates, and the designated costs of
17issuance of the refunding bonds.
18(b) The proceeds and any other cash in the “refunding fund”
19shall be held uninvested or shall be invested in noncallable
20obligations of, or obligations guaranteed as to principal and interest
21by, the United States of America or any agency or instrumentality
22thereof, when those obligations are backed by the full faith and
23credit of the United States of America, and shall be in an amount
24sufficient to pay the principal, interest, and redemption premiums,
25if any, on the refunded bonds as they become due or at designated
26dates prior to maturity, in which case certification of a certified
27public accountant licensed to practice in this state shall not be