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
begin delete to,end delete 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. The bill would authorize a local agency to execute and record in the office of the county
begin delete recorder,end delete
of the county in which a community facilities district is located, a notice of the owner’s agreement to disclose certain information and a notice of termination of that obligation, as specified. The bill would subject a subsequent transferee of the property to the disclosure obligation.
(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.
(6) The Mello-Roos Community Facilities Act of 1982 authorizes a community facilities district to finance various services, including, but not limited to, police protection services and maintenance and lighting of parks, parkways, streets, roads, and open space.
This bill would also authorize the financing of the maintenance and operation of any real property or other tangible property, with an estimated useful life of five years or more, that is owned by the local agency or by another local agency, as specified.
(7) Existing law specifies the requirements for the establishment of a community facilities district, including, among other things, a petition, a hearing, the establishment of the boundaries of the community facilities district, and an election on the question of establishment. Existing law authorizes a separate procedure for establishing a community facilities district where, with the unanimous approval of parcel owners, the district initially consists solely of territory proposed for annexation to the community facilities district in the future, as specified, and, for a district so established, provides for an alternate procedure for establishing a district appropriations limit, applying special taxes, and incurring bonded indebtedness.
This bill would also exclude a legislative body from being obligated to specify in the resolution of intention the conditions under which the obligation to pay the specified special tax may be prepaid and permanently satisfied, and would instead authorize a prepayment provision to be included in the unanimous approval, as specified. The bill would authorize, as an alternate and independent procedure for making changes to authorized facilities and services, the unanimous approval of the owner or owners of the parcel or parcels that will be affected by the change together with the written consent of the local agency, as specified.
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
2pursuant to Article 1 (commencing with Section 6500) and Article
32 (commencing with Section 6540), the authority may do any or
4all of the following:
5(a) Adopt bylaws for the regulation of its affairs and the conduct
6of its business.
7(b) Sue and be sued in its own name.
8(c) Issue bonds, including, at the option of the authority, bonds
9bearing interest, to pay the cost of any public capital improvement,
10working capital, or liability or other insurance program. In addition,
11for any purpose for which an authority may execute and deliver
12or cause to be executed and delivered certificates of participation
13in a lease or installment sale agreement with any public or private
14entity, the authority, at its option, may issue or cause to be issued
15bonds, rather than certificates of participation, and enter into a
16loan agreement with the public or private entity.
17(d) Engage the services of private consultants to render
18professional and technical assistance and advice in carrying out
19the purposes of this article.
20(e) As provided by applicable law, employ and compensate
21bond counsel, financial consultants, and other advisers determined
22necessary by the authority in connection with the issuance and sale
23of any bonds.
24(f) Contract for engineering, architectural,
accounting, or other
25services determined necessary by the authority for the successful
26development of a public capital improvement.
27(g) Pay the reasonable costs of consulting engineers, architects,
28accountants, and construction, land-use, recreation, and
29environmental experts employed by any sponsor or participant if
30the authority determines those services are necessary for the
31successful development of public capital improvements.
32(h) Take title to, sell by installment sale or otherwise, or lease
33lands, structures, real or personal property, rights, rights-of-way,
34franchises, easements, and other interests in lands that are located
35within the state that the authority determines are necessary or
36convenient for the financing of public capital improvements, or
37any portion thereof.
38(i) Receive and accept from any source, loans, contributions,
39or grants, in either money, property, labor, or other things of value,
40for, or in aid of, the construction financing, or refinancing of public
P6 1capital improvement, or any portion thereof or for the financing
2of working capital or insurance programs, or for the payment of
3the principal of and interest on bonds if the proceeds of those bonds
4are used for one or more of the purposes specified in this section.
5(j) Make secured or unsecured loans to any local agency in
6connection with the financing of capital improvement projects,
7working capital or insurance programs in accordance with an
8agreement between the authority and the local agency. However,
9no loan shall exceed the total cost of the public capital
10improvements, working capital or insurance needs of the local
11agency as determined by the local agency and by the authority.
12(k) Make secured or unsecured loans to any local agency in
13accordance with an agreement between the authority and the local
14agency to refinance indebtedness incurred by the local agency in
15connection with public capital improvements undertaken and
17(l) Mortgage all or any portion of its interest in public capital
18improvements and the property on which any project is located,
19whether owned or thereafter acquired, including the granting of a
20security interest in any property, tangible or intangible.
21(m) Assign or pledge all or any portion of its interests in
22mortgages, deeds of trust, indentures of mortgage or trust, or
23similar instruments, notes, and security interests in property,
24tangible or intangible, of a local agency to which the authority has
25made loans, and the revenues therefrom, including payment or
26income from any interest owned or held by the authority, for the
27benefit of the holders of bonds issued to finance public capital
28improvements. The pledge of moneys, revenues, accounts, contract
29rights, or rights to payment of any kind made by or to the authority
30pursuant to the authority granted in this part shall be valid and
31binding from the time the pledge is made for the benefit of the
32pledgees and successors thereto, against all parties irrespective of
33whether the parties have notice of the claim.
34(n) Lease the public capital improvements being financed to a
35local agency, upon terms and conditions that the authority deems
36proper; charge and collect rents therefor; terminate any lease upon
37the failure of the lessee to comply with any of the obligations of
38the lease; include in any lease provisions that the lessee shall have
39options to renew the lease for a period or periods, and at rents as
40determined by the authority; purchase or sell by an installment
P7 1agreement or otherwise any or all of the public capital
2improvements; or, upon payment of all the indebtedness incurred
3by the authority for the financing or refinancing of the public
4capital improvements, the authority may convey any or all of the
5project to the lessee or lessees.
6(o) Charge and apportion to local agencies that benefit from its
7services the administrative costs and expenses incurred in the
8exercise of the powers authorized by this article. These fees shall
9be set at a rate sufficient to recover, but not exceed, the authority’s
10costs of issuance and administration. The fee charged to each local
11obligation acquired by the pool shall not exceed that obligation’s
12proportionate share of those costs. The level of these fees shall be
13disclosed to the California Debt and Investment Advisory
14Commission pursuant to Section 6599.1.
15(p) Issue, obtain, or aid in obtaining, from any department or
16agency of the United States or of the state, or any private company,
17any insurance or guarantee to, or for, the payment or repayment
18of interest or principal, or both, or any part thereof, on any loan,
19lease, or obligation or any instrument evidencing or securing the
20same, made or entered into pursuant to this article.
21(q) Notwithstanding any other provision of this article, enter
22into any agreement, contract, or any other instrument with respect
23to any insurance or guarantee; accept payment in the manner and
24form as provided therein in the event of default by a local agency;
25and assign any insurance or guarantee that acts as security for the
27(r) Enter into any agreement or contract, execute any instrument,
28and perform any act or thing necessary, convenient, or desirable
29to carry out any power authorized by this article.
30(s) Invest any moneys held in reserve or sinking funds, or any
31moneys not required for immediate use or disbursement, in
32obligations that are authorized by law for the investment of trust
34(t) At the request of affected local agencies, combine and pledge
35revenues to public capital improvements for repayment of one or
36more series of bonds issued pursuant to this article.
37(u) Delegate to any of its individual parties or other responsible
38individuals the power to act on its behalf subject to its general
39direction, guidelines, and oversight.
P8 1(v) Purchase, with the proceeds of its bonds or its revenue, bonds
2issued by any local agency at public or negotiated sale. Bonds
3purchased pursuant to this subdivision may be held by the authority
4or sold to public or private purchasers at public or negotiated sale,
5in whole or in part, separately or together with other bonds issued
6by the authority.
7(w) Purchase, with the proceeds of its bonds or its revenue, VLF
8receivables sold to the authority pursuant to Section 6588.5. VLF
9receivables so purchased may be pledged to the payment of bonds
10issued by the authority or may be resold to public or private
11purchasers at public or negotiated sale, in whole or in part,
12separately or together with other VLF receivables purchased by
14(x) (1) Purchase, with the proceeds of its bonds or its revenue,
15Proposition 1A receivables pursuant to Section 6588.6. Proposition
161A receivables so purchased may be pledged to the payment of
17bonds issued by the authority or may be resold to public or private
18purchasers at public or negotiated sales, in whole or in part,
19separately or together with other Proposition 1A receivables
20purchased by the authority.
21(2) (A) All entities subject
to a reduction of ad valorem property
22tax revenues required under Section 100.06 of the Revenue and
23Taxation Code pursuant to the suspension set forth in Section
24100.05 of the Revenue and Taxation Code shall be afforded the
25opportunity to sell their Proposition 1A receivables to the authority.
26(B) If these entities offer Proposition 1A receivables to the
27authority for purchase and duly authorize the sale of the Proposition
281A receivable pursuant to documentation approved by the
29authority, the authority shall purchase all Proposition 1A
30receivables so offered to the extent it can sell bonds therefor. If
31the authority does not purchase all Proposition 1A receivables
32offered, it shall purchase a pro rata share of each entity’s offered
33Proposition 1A receivables.
34(C) The authority
may establish a deadline, no earlier than
35November 3, 2009, by which these entities shall offer their
36Proposition 1A receivables for sale to the authority and complete
37the application required by the authority.
38(3) For purposes of meeting costs incurred in performing its
39duties relative to the purchase and sale of Proposition 1A
40receivables, the authority shall be authorized to charge a fee to
P9 1each entity from which it purchases a Proposition 1A receivable.
2The fee shall be computed based on the percentage value of the
3Proposition 1A receivable purchased from each entity, in relation
4to the value of all Proposition 1A receivables purchased by the
5authority. The amount of the fee shall be paid from the proceeds
6of the bonds and shall be included in the principal amount of the
8(4) Terms and conditions of any and all fees and expenses
9charged by the authority, or those it contracts with, and the terms
10and conditions of sales of Proposition 1A receivables and bonds
11issued pursuant to this subdivision, including the terms of optional
12early redemption provisions, if any, shall be approved by the
13Treasurer and the Director of Finance, who shall not unreasonably
14withhold their approval. The aggregate principal amount of all
15bonds issued pursuant to this subdivision shall not exceed two
16billion two hundred fifty million dollars ($2,250,000,000), and the
17rate of interest paid on those bonds shall not exceed 8 percent per
18annum. The authority shall exercise its best efforts to obtain the
19lowest cost financing possible. Any and all premium obtained shall
20be used for either of the following:
21(A) Applied to pay the costs of issuance of the bonds.
22(B) Deposited in a trust account that is pledged to bondholders
23and used solely for the payment of interest on, or for repayment
24of, the bonds.
25(5) (A) In connection with any financing backed by Proposition
261A receivables, the Treasurer may retain financial advisors, legal
27counsel, and other consultants to assist in performing the duties
28required by this chapter and related to that financing.
29(B) Notwithstanding any other law, none of the following shall
30apply to any agreements entered into by the Treasurer pursuant to
31subparagraph (A) in connection with any Proposition 1A financing:
32(i) Section 11040 of the Government Code.
33(ii) Section 10295 of the Public Contract Code.
34(iii) Article 3 (commencing with Section 10300) and Article 4
35(commencing with Section 10335) of, Chapter 2 of Part 2 of
36Division 2 of the Public Contract Code, except for the authority
37of the Department of Finance under Section 10336 of the Public
38Contract Code to direct a state agency to transmit to it a contract
39for review, and except for Section 10348.5 of the Public Contract
P10 1(C) Any costs incurred by the Treasurer in connection with any
2Proposition 1A financing shall be reimbursed out of the proceeds
3of the financing.
4(y) Set any other terms and conditions on any purchase or sale
5pursuant to this section as it deems by resolution to be necessary,
6appropriate, and in the public interest, in furtherance of the
7purposes of this article.
Section 53313 of the Government Code is amended
A community facilities district may be established under
11this chapter to finance any one or more of the following types of
12services within an area:
13(a) Police protection services, including, but not limited to,
14criminal justice services. However, criminal justice services shall
15be limited to providing services for jails, detention facilities, and
17(b) Fire protection and suppression services, and ambulance
18and paramedic services.
19(c) Recreation program services, library services, maintenance
20services for elementary and secondary schoolsites and structures,
21and the operation and maintenance of museums and cultural
22facilities. A special tax may be levied for any of the services
23specified in this subdivision only upon approval of the registered
24voters as specified in subdivision (b) of Section 53326. An election
25to enact a special tax for recreation program services, library
26services, and the operation and maintenance of museums and
27cultural facilities may be conducted pursuant to subdivision (c) of
29(d) Maintenance and lighting of parks, parkways, streets, roads,
30and open space.
31(e) Flood and storm protection services, including, but not
32limited to, the operation and maintenance of storm drainage
33systems, plowing and removal of snow, and sandstorm protection
35(f) Services with respect to removal or remedial action for the
36cleanup of any hazardous substance released or threatened to be
37released into the environment. As used in this subdivision, the
38terms “remedial action” and “removal” shall have the meanings
39set forth in Sections 25322 and 25323, respectively, of the Health
40and Safety Code, and the term “hazardous substance” shall have
P11 1the meaning set forth in Section 25281 of the Health and Safety
2Code. Community facilities districts shall provide the State
3Department of Health Services and local health and building
4departments with notification of any cleanup activity pursuant to
5this subdivision at least 30 days prior to commencement of the
7(g) Maintenance and operation of any real property or other
8tangible property with an estimated useful life of five or more
9years that is owned by the local agency or by another local agency
10pursuant to an agreement entered into under Section 53316.2.
11A community facilities district tax approved by vote of the
12landowners of the district may only finance the services authorized
13in this section to the extent that they are in addition to those
14provided in the territory of the district before the district was
15created. The additional services shall not supplant services already
16available within that territory when the district was created.
17Bonds shall not be issued pursuant to this chapter to fund any
18of the services specified in this section, although bonds may be
19issued 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
24facilities to be owned or operated by a public agency other than
25the agency that created the district, or services to be provided by
26a public agency other than the agency that created the district, or
27any combination, only pursuant to a joint community facilities
28agreement or a joint exercise of powers agreement adopted pursuant
29to this section. A joint community facilities agreement or a joint
30exercise of powers agreement with a state or federal agency shall
31not be required if the local agency that created the district is the
32agency that would, in the absence of the district, enter into an
33agreement with the state or federal agency for the provision of the
34facilities or services, or if the local agency that created the district
35enters into a joint agreement with the public agency that would,
36in the absence of the district, enter into an agreement with the state
37or federal agency for the provision of the facilities or services.
38(b) At any time prior to the adoption of the resolution of
39formation creating a community facilities district or a resolution
40of change to alter a district, or a resolution or resolutions
P12 1authorizing issuance of bonds pursuant to Section 53356, the
2legislative bodies of two or more local agencies may enter into a
3joint community facilities agreement pursuant to this section and
4Sections 53316.4 and 53316.6 or into a joint exercise of powers
5agreement pursuant to the Joint Exercise of Powers Act (Chapter
65 (commencing with Section 6500) of Division 7 of Title 1) to
7exercise any power authorized by this chapter with respect to the
8community facilities district being created or changed if the
9legislative body of each entity adopts a resolution declaring that
10 the joint agreement would be beneficial to the residents of that
11entity. This subdivision shall not be construed to limit the ability
12of a joint powers authority created pursuant to the Joint Exercise
13of Powers Act to exercise the powers authorized by the Joint
14Exercise of Powers Act.
15(c) Notwithstanding the Joint Exercise of Powers Act, a
16contracting party may use the proceeds of any special tax or charge
17levied pursuant to this chapter or, in the case of facilities, of any
18bonds or other indebtedness issued pursuant to this chapter to
19provide facilities or services which that contracting party is
20otherwise authorized by law to provide, even though another
21contracting party does not have the power to provide those facilities
subdivision (b), nothing in this section
24shall prevent entry into or amendment of a joint community
25facilities agreement or a joint exercise of powers agreement at any
26time, if the new agreement or amendment is necessary, as
27determined by the legislative body, for either of the following
29(1) To allow an orderly transition of governmental facilities and
30finances in the case of any change in governmental organization
31approved pursuant to the Cortese-Knox-Hertzberg Local
32Government Reorganization Act of 2000 (Division 3 (commencing
33with Section 56000) of Title 5) or other law governing the
34reorganization of any agency that is a party to the agreement.
35(2) To allow participation in the agreement by a state or federal
36agency, including, but not limited to, the California Department
37of Transportation. Participation in an agreement by a state or
38federal agency is purely optional.
39(e) Notwithstanding any other provision of this chapter, no local
40agency that is party to a joint exercise of powers agreement or
P13 1joint community facilities agreement shall have primary
2responsibility for formation of a district, or for an extension of
3authorized facilities and services or a change in special taxes
4pursuant to Article 3 (commencing with Section 53330), unless
5that local agency is one or more of the following:
6(1) A city, a county, or a city and county.
7(2) An agency created pursuant to a joint powers agreement that
8is separate from the parties to the agreement, is responsible for the
9administration of the agreement, and is subject to the notification
10requirement of Section 6503.5.
11(3) An agency that is reasonably expected to have responsibility
12for providing facilities or services to be financed by a larger share
13of the proceeds of special taxes and bonds of the district or districts
14created or changed pursuant to the joint exercise of powers
15agreement or the joint community facilities agreement than any
16other local agency.
Section 53317 of the Government Code is amended
Unless the context otherwise requires, the definitions
20contained in this article shall govern the construction of this
22(a) “Clerk” means the clerk of the legislative body of a local
24(b) “Community facilities district” means a legally constituted
25governmental entity established pursuant to this chapter for the
26sole purpose of financing facilities and services.
27(c) “Cost” means the expense of constructing or purchasing the
28public facility and of related land, right-of-way, easements,
29including incidental expenses, and the cost of providing authorized
30services, including incidental expenses.
31(d) “Debt” means any binding obligation to pay or repay a sum
32of money, including obligations in the form of bonds, certificates
33of participation, long-term leases, loans from government agencies,
34or loans from banks, other financial institutions, private businesses,
35or individuals, or long-term contracts.
36(e) “Incidental expense” includes all of the following:
37(1) The cost of planning and designing public facilities to be
38financed pursuant to this chapter, including the cost of
39environmental evaluations of those facilities.
P14 1(2) The costs associated with the creation of the district, issuance
2of bonds, determination of the amount of taxes, collection of taxes,
3payment of taxes, or costs otherwise incurred in order to carry out
4the authorized purposes of the district.
5(3) Any other expenses incidental to the construction,
6completion, and inspection of the authorized work.
7(f) “Landowner” or “owner of land” means any person shown
8as the owner of land on the last equalized assessment roll or
9otherwise known to be the owner of the land by the legislative
10body. The legislative body has no obligation to obtain other
11information as to the ownership of the land, and its determination
12of ownership shall be final and conclusive for the purposes of this
13chapter. A public agency is not a landowner or owner of land for
14purposes of this chapter, unless one of the following exists:
15(1) The land owned by a public agency would be subject to a
16special tax pursuant to Section 53340.1.
17(2) The public agency has acquired the property by purchase or
18negotiation in connection with foreclosure of a special tax lien and
19it is intended that the property will be transferred to private
21(3) The public agency states in the proceedings that its land is
22intended to be transferred to private ownership and provides in the
23proceedings that its land will be subject to the special tax on the
24same basis as private property within the district and affirmatively
25waives any defense based on the fact of public ownership, to any
26action to foreclose on the property in the event of nonpayment of
27the special tax.
28(4) The land owned by a public agency is within the territory
29of a military base that is closed or is being closed.
30(g) “Legislative body” means the legislative body or governing
31board of any local agency.
32(h) “Local agency” means any city or county, whether general
33law or chartered, special district, school district, joint powers entity
34created pursuant to Chapter 5 (commencing with Section 6500)
35of Division 7 of Title 1, redevelopment agency, or any other
36municipal corporation, district, or political subdivision of the state.
37(i) “Rate” means a single rate of tax or a schedule of rates.
38(j) “Services” means the provision of categories of services
39identified in Section 53313. “Services” includes the performance
40by employees of functions, operations, maintenance, and repair
P15 1activities. “Services” does not include activities or facilities
2identified in Section 53313.5. “Maintenance” shall include
3replacement, and the creation and funding of a reserve fund to pay
4for a replacement.
Section 53328.1 of the Government Code is amended
(a) As an alternate and independent procedure for
8forming a community facilities district, the legislative body may
9form a community facilities district that initially consists solely
10of territory proposed for annexation to the community facilities
11district in the future, with the condition that a parcel or parcels
12within that territory may be annexed to the community facilities
13district and subjected to the special tax only with the unanimous
14approval of the owner or owners of the parcel or parcels at the
15time that the parcel or parcels are annexed. In that case, the
16legislative body shall follow the procedures set forth in this article
17for the formation of a community facilities district, with the
19(1) The legislative body shall not be obligated to specify the
20rate or rates of special tax in the resolution of intention or the
21resolution of formation, provided that both of the following are
23(A) The resolution of intention and the resolution of formation
24include a statement that the rate shall be established in an amount
25required to finance or refinance the authorized improvements and
26to pay the district’s administrative expenses.
27(B) The maximum rate of special tax applicable to a parcel or
28parcels shall be specified in the unanimous approval described in
29this section relating to the parcel or parcels.
30(2) The legislative body shall not be obligated to
specify in the
31resolution of intention the conditions under which the obligation
32to pay the specified special tax may be prepaid and permanently
33satisfied. Instead, a prepayment provision may be included in the
34unanimous approval of the owner or owners of each parcel or
35parcels at the time that the parcel or parcels are annexed to the
36community facilities district.
37(3) In lieu of approval pursuant to an election held in accordance
38with the procedures set forth in Sections 53326, 53327, 53327.5,
39and 53328, the appropriations limit for the community facilities
40district, the applicable rate of the special tax and the method of
P16 1apportionment and manner of collection of that tax, and the
2authorization to incur bonded indebtedness for the community
3facilities district shall be specified and be approved by the
4unanimous approval of the owner or owners of each parcel or
5parcels at the time that the parcel or parcels are annexed to the
6community facilities district. No additional hearings or procedures
7are required, and the unanimous approval shall be deemed to
8constitute a unanimous vote in favor of the appropriations limit
9for the community facilities district, the authorization to levy the
10special tax on the parcel or parcels, and the authorization to incur
11bonded indebtedness for the community facilities district.
12(4) 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.
31(5) The legislative body shall not record a notice of special tax
32lien against any parcel or parcels in the community facilities district
33until the owner or owners of the parcel or parcels have given their
34unanimous approval of the parcel’s or parcels’ annexation to the
35community facilities district, at which time the notice of special
36tax lien shall be recorded against the parcel or parcels as set forth
37in Section 53328.3.
38(b) Notwithstanding the provisions of Section 53340, after
39 adoption of the resolution of formation for a community facilities
40district described in subdivision (a), the legislative body may, by
P17 1ordinance, provide for the levy of the special taxes on parcels that
2will annex to the community facilities district at the rate or rates
3to be approved unanimously by the owner or owners of each parcel
4or parcels to be annexed to the community facilities district and
5for apportionment and collection of the special taxes in the manner
6specified in the resolution of formation. No further ordinance shall
7be required even though no parcels may then have annexed to the
8community facilities district.
9(c) The local agency may bring an action to determine the
10validity of any special taxes levied pursuant to this chapter and
11authorized pursuant to the procedures set forth in this section
12pursuant to Chapter 9 (commencing with Section 860) of Title 10
13of Part 2 of the Code of Civil Procedure. Notwithstanding Section
14 53359, if an action is brought by an interested person pursuant to
15Section 863 of the Code of Civil Procedure to determine the
16validity of any special taxes levied against a parcel pursuant to
17this chapter and authorized pursuant to the procedures set forth in
18this section, the action shall be brought pursuant to Chapter 9
19(commencing with Section 860) of Title 10 of Part 2 of the Code
20of Civil Procedure, but shall, notwithstanding the time limits
21specified in Section 860 of the Code of Civil Procedure, be
22commenced within 15 days after the date on which the notice of
23special tax lien is recorded against the parcel. Any appeal from a
24judgment in any action or proceeding described in this subdivision
25shall be commenced within 30 days after entry of judgment.
26(d) A community facilities district formed pursuant to this
27section may only finance facilities pursuant to subdivision (l) of
29(e) In connection with formation of a community facilities
30district and annexation of a parcel or parcels to the community
31facilities district pursuant to this section, and the conduct of an
32election on the proposition to authorize bonded indebtedness
33pursuant to the alternate procedures set forth in Section 53355.5,
34the local agency may, without additional hearings or procedures,
35designate a parcel or parcels as an improvement area within the
36community facilities district. After the designation of a parcel or
37parcels as an improvement area, all proceedings for approval of
38the appropriations limit, the rate and method of apportionment and
39manner 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.
3(f) In connection with a community facilities district formed
4under this section, as an alternate and independent procedure for
5making the changes described in Section 53330.7, the changes
6may be made with the unanimous approval of the owner or owners
7of the parcel or parcels that will be affected by the change and
8with the written consent of the local agency. No additional hearings
9or procedures are required, and the unanimous approval shall be
10deemed to constitute a unanimous vote in favor of the proposed
11changes. If the proceeds of a special tax are being used to retire
12any debt incurred pursuant to this chapter and the unanimous
13approval relates to the reduction of the special tax rate, the
14unanimous approval shall recite that the reduction or termination
15of the special tax will not interfere with the timely retirement of
Section 53340 of the Government Code is amended
(a) After a community facilities district has been
20created and authorized to levy specified special taxes pursuant to
21Article 2 (commencing with Section 53318), Article 3
22(commencing with Section 53330), or Article 3.5 (commencing
23with Section 53339), the legislative body may, by ordinance, levy
24the special taxes at the rate and apportion them in the manner
25specified in the resolution adopted pursuant to Article 2
26(commencing with Section 53318), Article 3 (commencing with
27Section 53330), or Article 3.5 (commencing with Section 53339).
28After creation of a community facilities district that includes
29territory proposed for annexation in the future by unanimous
30approval as described in subdivision (b) of Section 53339.3, the
31legislative body may, by ordinance, provide for the levy of special
32taxes on parcels that will be annexed to the community facilities
33district at the rate or rates to be approved unanimously by the
34owner or owners of each parcel or parcels to be annexed to the
35community facilities district and for apportionment and collection
36of the special taxes in the manner specified in the resolution of
38(b) The legislative body may provide, by resolution, for the levy
39of the special tax in the current tax year or future tax years at the
40same rate or at a lower rate than the rate provided by the ordinance,
P19 1if the resolution is adopted and a certified list of all parcels subject
2to the special tax levy including the amount of the tax to be levied
3on each parcel for the applicable tax year, is filed by the clerk or
4other official designated by the legislative body with the county
5auditor on or before the 10th day of August of that tax year. The
6clerk or other official designated by the legislative body may file
7the certified list after the 10th of August but not later than the 21st
8of August if the clerk or other official obtains prior written consent
9of the county auditor.
10(c) Properties or entities of the state, federal, or local
11governments shall, except for properties that a local agency is a
12landowner of within the meaning of subdivision (f) of Section
1353317, or except as otherwise provided in Section 53317.3, be
14exempt from the special tax. No other properties or entities are
15exempt from the special tax unless the properties or entities are
16expressly exempted in the resolution of formation to establish a
17district adopted pursuant to Section 53325.1 or in a resolution of
18consideration to levy a new special tax or special taxes or to alter
19the rate or method of apportionment of an existing special tax as
20provided in Section 53334.
21(d) The proceeds of any special tax may only be used to pay,
22in whole or part, the cost of providing public facilities, services,
23and incidental expenses pursuant to this chapter.
24(e) The special tax shall be collected in the same manner as
25ordinary ad valorem property taxes are collected and shall be
26subject to the same penalties and the same procedure, sale, and
27lien priority in case of delinquency as is provided for ad valorem
28taxes, unless another procedure has been authorized in the
29resolution of formation establishing the district and adopted by
30the legislative body.
31(f) (1) Notwithstanding subdivision (e), the legislative body of
32the district may waive all or any specified portion of the
33delinquency penalties and redemption penalties if it makes all of
34the following determinations:
35(A) The waivers shall apply only to parcels delinquent at the
36time of the determination.
37(B) The waivers shall be available only with respect to parcels
38for which all past due and currently due special taxes and all other
39costs due are paid in full within a limited period of time specified
40in the determination.
P20 1(C) The waivers shall be available only with respect to parcels
2sold or otherwise transferred to new owners unrelated to the owner
3responsible for the delinquency.
4(D) The waivers are in the best interest of the debtholders.
5(2) The charges with penalties to be waived shall be removed
6 from the tax roll pursuant to Section 53356.2 and local
7administrative procedures, and any distributions made to the district
8prior to collection pursuant to Chapter 3 (commencing with Section
94701) of Part 8 of Division 1 of the Revenue and Taxation Code
10shall be repaid by the district prior to granting the waiver.
11(g) The tax collector may collect the special tax at intervals as
12specified in the resolution of formation, including intervals
13different from the intervals determining when the ordinary ad
14valorem property taxes are collected. The tax collector may deduct
15the reasonable administrative costs incurred in collecting the special
17(h) All special taxes levied by a community facilities district
18shall be secured by the lien imposed pursuant to Section 3115.5
19of the Streets and Highways Code. This lien shall be a continuing
20lien and shall secure each levy of special taxes. The lien of the
21special tax shall continue in force and effect until the special tax
22obligation is prepaid, permanently satisfied, and canceled in
23accordance with Section 53344 or until the special tax ceases to
24be levied by the legislative body in the manner provided in Section
2553330.5. If any portion of a parcel is encumbered by a lien pursuant
26to 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
31financing of, specified public facilities, the legislative body may
32by resolution designate a portion or portions of the district as one
33or more improvement areas. An area shall be known as
34“Improvement Area No. ____” of “Community Facilities District
35____.” After the designation of an improvement area, all
36proceedings for purposes of a bond election and for the purpose
37of levying special taxes for payment of the bonds, or for any other
38change pursuant to Article 3 (commencing with Section 53330),
39shall apply only to the improvement area for those specified
P21 1(b) In
connection with the annexation by unanimous approval
2to a community facilities district of a parcel that was included in
3territory proposed for annexation in the future to the community
4facilities district, as described in Section 53329.6, the local agency
begin delete may, without additional hearings or procedures,end delete designate a
6parcel or parcels as an improvement area within the community
7facilities district. After the designation of a parcel or parcels as an
13improvement area, all proceedings for approval of the
14appropriations limit, the rate and method of apportionment and
15manner of collection of special taxes, and the authorization to incur
16bonded indebtedness for the parcel or parcels shall apply only to
17the improvement area.
Section 53357.1 is added to the Government Code, to
(a) In connection with the issuance of bonds in which
21a property owner agrees, by written consent, to disclose certain
22information on a continuous basis through the Municipal Securities
23Rulemaking Board’s Electronic Municipal Market Access, or
24successor information depository, the local agency may execute
25and record in the office of the county recorder, in which the
26community facilities district is located, a notice of the owner’s
27disclosure agreement for the purpose of providing notice to a
28subsequent transferee. The owner’s written consent shall be
29attached to the notice. The county recorder’s office shall accept
31(b) A subsequent transferee of
the property shall be subject to
32the disclosure obligation. Upon the termination of the disclosure
33obligation, the local agency may cause a notice of termination to
34be recorded with the office of the county recorder in which the
35original notice was recorded. The county recorder’s office shall
36accept the notice of termination.
Section 53363.9 of the Government Code is amended
(a) The proceeds and investments in the “refunding
40fund” shall be in an amount sufficient to meet either the
P22 1requirements of paragraph (1) or paragraph (2) at the time of
2issuance of the refunding bonds, as certified by a certified public
3accountant licensed to practice in this state.
4(1) The proceeds and investments, together with any interest or
5other gain to be derived from any such investment, shall be in an
6amount sufficient to pay the principal, interest, and redemption
7premiums, if any, on the refunded bonds as they become due or
8at designated dates prior to maturity and the designated costs of
9issuance of the refunding bonds.
10(2) The proceeds and investments, together with any interest or
11other gain to be derived from any such investment, shall be in an
12amount sufficient to pay the principal, interest, and redemption
13premiums, if any, on the refunding bonds prior to the maturity of
14the bonds to be refunded or prior to a designated date or dates
15before the maturity of the bonds to be refunded, the principal and
16any redemption premiums due on the refunded bonds at maturity
17or upon that designated date or dates, and the designated costs of
18issuance of the refunding bonds.
19(b) The proceeds and any other cash in the “refunding fund”
20shall be held uninvested or shall be invested in noncallable
21obligations of, or obligations guaranteed as to principal and interest
22by, the United States of America or any agency or instrumentality
23thereof, when those obligations are backed by the full faith and
24credit of the United States of America, and shall be in an amount
25sufficient to pay the principal, interest, and redemption premiums,
26if any, on the refunded bonds as they become due or at designated
27dates prior to maturity, in which case certification of a certified
28public accountant licensed to practice in this state shall not be