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. The bill would authorize a local agency to execute and record in the office of the county recorder 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
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:
7(a) Adopt bylaws for the regulation of its affairs and the conduct
8of its business.
9(b) Sue and be sued in its own name.
10(c) Issue bonds, including, at the option of the authority, bonds
11bearing interest, to pay the cost of any public capital improvement,
12working capital, or liability or other insurance program. In addition,
13for any purpose for which an authority may execute and deliver
14or cause to be executed and delivered certificates of participation
15in a lease or installment sale agreement with any public or private
16entity, the authority, at its option, may issue or cause to be issued
17bonds, rather than certificates of participation, and enter into a
18loan agreement with the public or private entity.
19(d) Engage the services of private consultants to render
20professional and technical assistance and advice in carrying out
21the purposes of this article.
22(e) As provided by applicable law, employ and compensate
23bond counsel, financial consultants, and other advisers determined
24necessary by the authority in connection with the issuance and sale
25of any bonds.
26(f) Contract for engineering, architectural,
accounting, or other
27services determined necessary by the authority for the successful
28development of a public capital improvement.
29(g) Pay the reasonable costs of consulting engineers, architects,
30accountants, and construction, land-use, recreation, and
31environmental experts employed by any sponsor or participant if
32the authority determines those services are necessary for the
33successful development of public capital improvements.
34(h) Take title to, sell by installment sale or otherwise, or lease
35lands, structures, real or personal property, rights, rights-of-way,
36franchises, easements, and other interests in lands that are located
37within the state that the authority determines are necessary or
P6 1convenient for the financing of public capital improvements, or
2any portion thereof.
3(i) Receive and accept from any source, loans, contributions,
4or grants, in either money, property, labor, or other things of value,
5for, or in aid of, the construction financing, or refinancing of public
6capital improvement, or any portion thereof or for the financing
7of working capital or insurance programs, or for the payment of
8the principal of and interest on bonds if the proceeds of those bonds
9are used for one or more of the purposes specified in this section.
10(j) Make secured or unsecured loans to any local agency in
11connection with the financing of capital improvement projects,
12working capital or insurance programs in accordance with an
13agreement between the authority and the local agency. However,
14no loan shall exceed the total cost of the public capital
15improvements, working capital or insurance needs of the local
16agency as determined by the local agency and by the authority.
17(k) Make secured or unsecured loans to any local agency in
18accordance with an agreement between the authority and the local
19agency to refinance indebtedness incurred by the local agency in
20connection with public capital improvements undertaken and
22(l) Mortgage all or any portion of its interest in public capital
23improvements and the property on which any project is located,
24whether owned or thereafter acquired, including the granting of a
25security interest in any property, tangible or intangible.
26(m) Assign or pledge all or any portion of its interests in
27mortgages, deeds of trust, indentures of mortgage or trust, or
28similar instruments, notes, and security interests in property,
29tangible or intangible, of a local agency to which the authority has
30made loans, and the revenues therefrom, including payment or
31income from any interest owned or held by the authority, for the
32benefit of the holders of bonds issued to finance public capital
33improvements. The pledge of moneys, revenues, accounts, contract
34rights, or rights to payment of any kind made by or to the authority
35pursuant to the authority granted in this part shall be valid and
36binding from the time the pledge is made for the benefit of the
37pledgees and successors thereto, against all parties irrespective of
38whether the parties have notice of the claim.
39(n) Lease the public capital improvements being financed to a
40local agency, upon terms and conditions that the authority deems
P7 1proper; charge and collect rents therefor; terminate any lease upon
2the failure of the lessee to comply with any of the obligations of
3the lease; include in any lease provisions that the lessee shall have
4options to renew the lease for a period or periods, and at rents as
5determined by the authority; purchase or sell by an installment
6agreement or otherwise any or all of the public capital
7improvements; or, upon payment of all the indebtedness incurred
8by the authority for the financing or refinancing of the public
9capital improvements, the authority may convey any or all of the
10project to the lessee or lessees.
11(o) Charge and apportion to local agencies that benefit from its
12services the administrative costs and expenses incurred in the
13exercise of the powers authorized by this article. These fees shall
14be set at a rate sufficient to recover, but not exceed, the authority’s
15costs of issuance and administration. The fee charged to each local
16obligation acquired by the pool shall not exceed that obligation’s
17proportionate share of those costs. The level of these fees shall be
18disclosed to the California Debt and Investment Advisory
19Commission pursuant to Section 6599.1.
20(p) Issue, obtain, or aid in obtaining, from any department or
21agency of the United States or of the state, or any private company,
22any insurance or guarantee to, or for, the payment or repayment
23of interest or principal, or both, or any part thereof, on any loan,
24lease, or obligation or any instrument evidencing or securing the
25same, made or entered into pursuant to this article.
26(q) Notwithstanding any other provision of this article, enter
27into any agreement, contract, or any other instrument with respect
28to any insurance or guarantee; accept payment in the manner and
29form as provided therein in the event of default by a local agency;
30and assign any insurance or guarantee that acts as security for the
32(r) Enter into any agreement or contract, execute any instrument,
33and perform any act or thing necessary, convenient, or desirable
34to carry out any power authorized by this article.
35(s) Invest any moneys held in reserve or sinking funds, or any
36moneys not required for immediate use or disbursement, in
37obligations that are authorized by law for the investment of trust
P8 1(t) At the request of affected local agencies, combine and pledge
2revenues to public capital improvements for repayment of one or
3more series of bonds issued pursuant to this article.
4(u) Delegate to any of its individual parties or other responsible
5individuals the power to act on its behalf subject to its general
6direction, guidelines, and oversight.
7(v) Purchase, with the proceeds of its bonds or its revenue, bonds
8issued by any local agency at public or negotiated sale. Bonds
9purchased pursuant to this subdivision may be held by the authority
10or sold to public or private purchasers at public or negotiated sale,
11in whole or in part, separately or together with other bonds issued
12by the authority.
13(w) Purchase, with the proceeds of its bonds or its revenue, VLF
14receivables sold to the authority pursuant to Section 6588.5. VLF
15receivables so purchased may be pledged to the payment of bonds
16issued by the authority or may be resold to public or private
17purchasers at public or negotiated sale, in whole or in part,
18separately or together with other VLF receivables purchased by
20(x) (1) Purchase, with the proceeds of its bonds or its revenue,
21Proposition 1A receivables pursuant to Section 6588.6. Proposition
221A receivables so purchased may be pledged to the payment of
23bonds issued by the authority or may be resold to public or private
24purchasers at public or negotiated sales, in whole or in part,
25separately or together with other Proposition 1A receivables
26purchased by the authority.
27(2) (A) All entities subject to a
reduction of ad valorem property
28tax revenues required under Section 100.06 of the Revenue and
29Taxation Code pursuant to the suspension set forth in Section
30100.05 of the Revenue and Taxation Code shall be afforded the
31opportunity to sell their Proposition 1A receivables to the authority.
32(B) If these entities offer Proposition 1A receivables to the
33authority for purchase and duly authorize the sale of the Proposition
341A receivable pursuant to documentation approved by the
35authority, the authority shall purchase all Proposition 1A
36receivables so offered to the extent it can sell bonds therefor. If
37the authority does not purchase all Proposition 1A receivables
38offered, it shall purchase a pro rata share of each entity’s offered
39Proposition 1A receivables.
P9 1(C) The authority may
establish a deadline, no earlier than
2November 3, 2009, by which these entities shall offer their
3Proposition 1A receivables for sale to the authority and complete
4the application required by the authority.
5(3) For purposes of meeting costs incurred in performing its
6duties relative to the purchase and sale of Proposition 1A
7receivables, the authority shall be authorized to charge a fee to
8each entity from which it purchases a Proposition 1A receivable.
9The fee shall be computed based on the percentage value of the
10Proposition 1A receivable purchased from each entity, in relation
11to the value of all Proposition 1A receivables purchased by the
12authority. The amount of the fee shall be paid from the proceeds
13of the bonds and shall be included in the principal amount of the
15(4) Terms and conditions of any and all fees and expenses
16charged by the authority, or those it contracts with, and the terms
17and conditions of sales of Proposition 1A receivables and bonds
18issued pursuant to this subdivision, including the terms of optional
19early redemption provisions, if any, shall be approved by the
20Treasurer and the Director of Finance, who shall not unreasonably
21withhold their approval. The aggregate principal amount of all
22bonds issued pursuant to this subdivision shall not exceed two
23billion two hundred fifty million dollars ($2,250,000,000), and the
24rate of interest paid on those bonds shall not exceed 8 percent per
25annum. The authority shall exercise its best efforts to obtain the
26lowest cost financing possible. Any and all premium obtained shall
27be used for either of the following:
28(A) Applied to pay the costs of issuance of the bonds.
29(B) Deposited in a trust account that is pledged to bondholders
30and used solely for the payment of interest on, or for repayment
31of, the bonds.
32(5) (A) In connection with any financing backed by Proposition
331A receivables, the Treasurer may retain financial advisors, legal
34counsel, and other consultants to assist in performing the duties
35required by this chapter and related to that financing.
36(B) Notwithstanding any other law, none of the following shall
37apply to any agreements entered into by the Treasurer pursuant to
38subparagraph (A) in connection with any Proposition 1A financing:
39(i) Section 11040 of the Government Code.
40(ii) Section 10295 of the Public Contract Code.
P10 1(iii) Article 3 (commencing with Section 10300) and Article 4
2(commencing with Section 10335) of, Chapter 2 of Part 2 of
3Division 2 of the Public Contract Code, except for the authority
4of the Department of Finance under Section 10336 of the Public
5Contract Code to direct a state agency to transmit to it a contract
6for review, and except for Section 10348.5 of the Public Contract
8(C) Any costs incurred by the Treasurer in connection with any
9Proposition 1A financing shall be reimbursed out of the proceeds
10of the financing.
11(y) Set any other terms and conditions on any purchase or sale
12pursuant to this section as it deems by resolution to be necessary,
13appropriate, and in the public interest, in furtherance of the
14purposes of this article.
Section 53313 of the Government Code is amended
A community facilities district may be established under
18this chapter to finance any one or more of the following types of
19services within an area:
20(a) Police protection services, including, but not limited to,
21criminal justice services. However, criminal justice services shall
22be limited to providing services for jails, detention facilities, and
24(b) Fire protection and suppression services, and ambulance
25and paramedic services.
26(c) Recreation program services, library services, maintenance
27services for elementary and secondary schoolsites and structures,
28and the operation and maintenance of museums and cultural
29facilities. A special tax may be levied for any of the services
30specified in this subdivision only upon approval of the registered
31voters as specified in subdivision (b) of Section 53326. An election
32to enact a special tax for recreation program services, library
33services, and the operation and maintenance of museums and
34cultural facilities may be conducted pursuant to subdivision (c) of
36(d) Maintenance and lighting of parks, parkways, streets, roads,
37and open space.
38(e) Flood and storm protection services, including, but not
39limited to, the operation and maintenance of storm drainage
P11 1systems, plowing and removal of snow, and sandstorm protection
3(f) Services with respect to removal or remedial action for the
4cleanup of any hazardous substance released or threatened to be
5released into the environment. As used in this subdivision, the
6terms “remedial action” and “removal” shall have the meanings
7set forth in Sections 25322 and 25323, respectively, of the Health
8and Safety Code, and the term “hazardous substance” shall have
9the meaning set forth in Section 25281 of the Health and Safety
10Code. Community facilities districts shall provide the State
11Department of Health Services and local health and building
12departments with notification of any cleanup activity pursuant to
13this subdivision at least 30 days prior to commencement of the
15(g) Maintenance and operation of any real property or other
16tangible property with an estimated useful life of five or more
17years that is owned by the local agency or by another local agency
18pursuant to an agreement entered into under Section 53316.2.
19A community facilities district tax approved by vote of the
20landowners of the district may only finance the services authorized
21in this section to the extent that they are in addition to those
22provided in the territory of the district before the district was
23created. The additional services shall not supplant services already
24available within that territory when the district was created.
25Bonds shall not be issued pursuant to this chapter to fund any
26of the services specified in this section, although bonds may be
27issued 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
32facilities to be owned or operated by a public agency other than
33the agency that created the district, or services to be provided by
34a public agency other than the agency that created the district, or
35any combination, only pursuant to a joint community facilities
36agreement or a joint exercise of powers agreement adopted pursuant
37to this section. A joint community facilities agreement or a joint
38exercise of powers agreement with a state or federal agency shall
39not be required if the local agency that created the district is the
40agency that would, in the absence of the district, enter into an
P12 1agreement with the state or federal agency for the provision of the
2facilities or services, or if the local agency that created the district
3enters into a joint agreement with the public agency that would,
4in the absence of the district, enter into an agreement with the state
5or federal agency for the provision of the facilities or services.
6(b) At any time prior to the adoption of the resolution of
7formation creating a community facilities district or a resolution
8of change to alter a district, or a resolution or resolutions
9authorizing issuance of bonds pursuant to Section 53356, the
10legislative bodies of two or more local agencies may enter into a
11joint community facilities agreement pursuant to this section and
12Sections 53316.4 and 53316.6 or into a joint exercise of powers
13agreement pursuant to the Joint Exercise of Powers Act (Chapter
145 (commencing with Section 6500) of Division 7 of Title 1) to
15exercise any power authorized by this chapter with respect to the
16community facilities district being created or changed if the
17legislative body of each entity adopts a resolution declaring that
18 the joint agreement would be beneficial to the residents of that
19entity. This subdivision shall not be construed to limit the ability
20of a joint powers authority created pursuant to the Joint Exercise
21of Powers Act to exercise the powers authorized by the Joint
22Exercise of Powers Act.
23(c) Notwithstanding the Joint Exercise of Powers Act, a
24contracting party may use the proceeds of any special tax or charge
25levied pursuant to this chapter or, in the case of facilities, of any
26bonds or other indebtedness issued pursuant to this chapter to
27provide facilities or services which that contracting party is
28otherwise authorized by law to provide, even though another
29contracting party does not have the power to provide those facilities
subdivision (b), nothing in this section
32shall prevent entry into or amendment of a joint community
33facilities agreement or a joint exercise of powers agreement at any
34time, if the new agreement or amendment is necessary, as
35determined by the legislative body, for either of the following
37(1) To allow an orderly transition of governmental facilities and
38finances in the case of any change in governmental organization
39approved pursuant to the Cortese-Knox-Hertzberg Local
40Government Reorganization Act of 2000 (Division 3 (commencing
P13 1with Section 56000) of Title 5) or other law governing the
2reorganization of any agency that is a party to the agreement.
3(2) To allow participation in the agreement by a state or federal
4agency, including, but not limited to, the California Department
5of Transportation. Participation in an agreement by a state or
6federal agency is purely optional.
7(e) Notwithstanding any other provision of this chapter, no local
8agency that is party to a joint exercise of powers agreement or
9joint community facilities agreement shall have primary
10responsibility for formation of a district, or for an extension of
11authorized facilities and services or a change in special taxes
12pursuant to Article 3 (commencing with Section 53330), unless
13that local agency is one or more of the following:
14(1) A city, a county, or a city and county.
15(2) An agency created pursuant to a joint powers agreement that
16is separate from the parties to the agreement, is responsible for the
17administration of the agreement, and is subject to the notification
18requirement of Section 6503.5.
19(3) An agency that is reasonably expected to have responsibility
20for providing facilities or services to be financed by a larger share
21of the proceeds of special taxes and bonds of the district or districts
22created or changed pursuant to the joint exercise of powers
23agreement or the joint community facilities agreement than any
24other local agency.
Section 53317 of the Government Code is amended
Unless the context otherwise requires, the definitions
28contained in this article shall govern the construction of this
30(a) “Clerk” means the clerk of the legislative body of a local
32(b) “Community facilities district” means a legally constituted
33governmental entity established pursuant to this chapter for the
34sole purpose of financing facilities and services.
35(c) “Cost” means the expense of constructing or purchasing the
36public facility and of related land, right-of-way, easements,
37including incidental expenses, and the cost of providing authorized
38services, including incidental expenses.
39(d) “Debt” means any binding obligation to pay or repay a sum
40of money, including obligations in the form of bonds, certificates
P14 1of participation, long-term leases, loans from government agencies,
2or loans from banks, other financial institutions, private businesses,
3or individuals, or long-term contracts.
4(e) “Incidental expense” includes all of the following:
5(1) The cost of planning and designing public facilities to be
6financed pursuant to this chapter, including the cost of
7environmental evaluations of those facilities.
8(2) The costs associated with the creation of the district, issuance
9of bonds, determination of the amount of taxes, collection of taxes,
10payment of taxes, or costs otherwise incurred in order to carry out
11the authorized purposes of the district.
12(3) Any other expenses incidental to the construction,
13completion, and inspection of the authorized work.
14(f) “Landowner” or “owner of land” means any person shown
15as the owner of land on the last equalized assessment roll or
16otherwise known to be the owner of the land by the legislative
17body. The legislative body has no obligation to obtain other
18information as to the ownership of the land, and its determination
19of ownership shall be final and conclusive for the purposes of this
20chapter. A public agency is not a landowner or owner of land for
21purposes of this chapter, unless one of the following exists:
22(1) The land owned by a public agency would be subject to a
23special tax pursuant to Section 53340.1.
24(2) The public agency has acquired the property by purchase or
25negotiation in connection with foreclosure of a special tax lien and
26it is intended that the property will be transferred to private
28(3) The public agency states in the proceedings that its land is
29intended to be transferred to private ownership and provides in the
30proceedings that its land will be subject to the special tax on the
31same basis as private property within the district and affirmatively
32waives any defense based on the fact of public ownership, to any
33action to foreclose on the property in the event of nonpayment of
34the special tax.
35(4) The land owned by a public agency is within the territory
36of a military base that is closed or is being closed.
37(g) “Legislative body” means the legislative body or governing
38board of any local agency.
39(h) “Local agency” means any city or county, whether general
40law or chartered, special district, school district, joint powers entity
P15 1created pursuant to Chapter 5 (commencing with Section 6500)
2of Division 7 of Title 1, redevelopment agency, or any other
3municipal corporation, district, or political subdivision of the state.
4(i) “Rate” means a single rate of tax or a schedule of rates.
5(j) “Services” means the provision of categories of services
6identified in Section 53313. “Services” includes the performance
7by employees of functions, operations, maintenance, and repair
8activities. “Services” does not include activities or facilities
9identified in Section 53313.5. “Maintenance” shall include
10replacement, and the creation and funding of a reserve fund to pay
11for a replacement.
Section 53328.1 of the Government Code is amended
(a) As an alternate and independent procedure for
15forming a community facilities district, the legislative body may
16form a community facilities district that initially consists solely
17of territory proposed for annexation to the community facilities
18district in the future, with the condition that a parcel or parcels
19within that territory may be annexed to the community facilities
20district and subjected to the special tax only with the unanimous
21approval of the owner or owners of the parcel or parcels at the
22time that the parcel or parcels are annexed. In that case, the
23legislative body shall follow the procedures set forth in this article
24for the formation of a community facilities district, with the
26(1) The legislative body shall not be obligated to specify the
27rate or rates of special tax in the resolution of intention or the
28resolution of formation, provided that both of the following are
30(A) The resolution of intention and the resolution of formation
31include a statement that the rate shall be established in an amount
32required to finance or refinance the authorized improvements and
33to pay the district’s administrative expenses.
34(B) The maximum rate of special tax applicable to a parcel or
35parcels shall be specified in the unanimous approval described in
36this section relating to the parcel or parcels.
37(2) The legislative body shall not be obligated to
specify in the
38resolution of intention the conditions under which the obligation
39to pay the specified special tax may be prepaid and permanently
40satisfied. Instead, a prepayment provision may be included in the
P16 1unanimous approval of the owner or owners of each parcel or
2parcels at the time that the parcel or parcels are annexed to the
3community facilities district.
4(3) In lieu of approval pursuant to an election held in accordance
5with the procedures set forth in Sections 53326, 53327, 53327.5,
6and 53328, the appropriations limit for the community facilities
7district, the applicable rate of the special tax and the method of
8apportionment and manner of collection of that tax, and the
9authorization to incur bonded indebtedness for the community
10facilities district shall be specified and be approved by the
11unanimous approval of the owner or owners of each parcel or
12parcels at the time that the parcel or parcels are annexed to the
13community facilities district. No additional hearings or procedures
14are required, and the unanimous approval shall be deemed to
15constitute a unanimous vote in favor of the appropriations limit
16for the community facilities district, the authorization to levy the
17special tax on the parcel or parcels, and the authorization to incur
18bonded indebtedness for the community facilities district.
19(4) Notwithstanding Section 53324, this paragraph establishes
20the applicable protest provisions in the event a local agency forms
21a community facilities district pursuant to the procedures set forth
22in this section. If 50 percent or more of the registered voters, or
23six registered voters, whichever is more, residing within the
24territory proposed to be annexed to the community facilities district
25in the future, or if the owners of one-half or more of the area of
26land proposed to be annexed in the future and not exempt from
27the special tax, file written protests against establishment of the
28community facilities district, and protests are not withdrawn so as
29to reduce the protests to less than a majority, no further proceedings
30to form the community facilities district shall be undertaken for a
31period of one year from the date of decision of the legislative body
32on the issues discussed at the hearing. If the majority protests of
33the registered voters or of the landowners are only against the
34furnishing of a specified type or types of facilities or services
35within the district, or against levying a specified special tax, those
36types of facilities or services or the specified special tax shall be
37eliminated from the resolution of formation.
38(5) The legislative body shall not record a notice of special tax
39lien against any parcel or parcels in the community facilities district
40until the owner or owners of the parcel or parcels have given their
P17 1unanimous approval of the parcel’s or parcels’ annexation to the
2community facilities district, at which time the notice of special
3tax lien shall be recorded against the parcel or parcels as set forth
4in Section 53328.3.
5(b) Notwithstanding the provisions of Section 53340, after
6 adoption of the resolution of formation for a community facilities
7district described in subdivision (a), the legislative body may, by
8ordinance, provide for the levy of the special taxes on parcels that
9will annex to the community facilities district at the rate or rates
10to be approved unanimously by the owner or owners of each parcel
11or parcels to be annexed to the community facilities district and
12for apportionment and collection of the special taxes in the manner
13specified in the resolution of formation. No further ordinance shall
14be required even though no parcels may then have annexed to the
15community facilities district.
16(c) The local agency may bring an action to determine the
17validity of any special taxes levied pursuant to this chapter and
18authorized pursuant to the procedures set forth in this section
19pursuant to Chapter 9 (commencing with Section 860) of Title 10
20of Part 2 of the Code of Civil Procedure. Notwithstanding Section
21 53359, if an action is brought by an interested person pursuant to
22Section 863 of the Code of Civil Procedure to determine the
23validity of any special taxes levied against a parcel pursuant to
24this chapter and authorized pursuant to the procedures set forth in
25this section, the action shall be brought pursuant to Chapter 9
26(commencing with Section 860) of Title 10 of Part 2 of the Code
27of Civil Procedure, but shall, notwithstanding the time limits
28specified in Section 860 of the Code of Civil Procedure, be
29commenced within 15 days after the date on which the notice of
30special tax lien is recorded against the parcel. Any appeal from a
31judgment in any action or proceeding described in this subdivision
32shall be commenced within 30 days after entry of judgment.
33(d) A community facilities district formed pursuant to this
34section may only finance facilities pursuant to subdivision (l) of
36(e) In connection with formation of a community facilities
37district and annexation of a parcel or parcels to the community
38facilities district pursuant to this section, and the conduct of an
39election on the proposition to authorize bonded indebtedness
40pursuant to the alternate procedures set forth in Section 53355.5,
P18 1the local agency may, without additional hearings or procedures,
2designate a parcel or parcels as an improvement area within the
3community facilities district. After the designation of a parcel or
4parcels as an improvement area, all proceedings for approval of
5the appropriations limit, the rate and method of apportionment and
6manner of collection of special tax and the authorization to incur
7bonded indebtedness for the parcel or parcels shall apply only to
8the improvement area.
9(f) In connection with a community facilities district formed
10under this section, as an alternate and independent procedure for
11making the changes described in Section 53330.7, the changes
12may be made with the unanimous approval of the owner or owners
13of the parcel or parcels that will be affected by the change and
14with the written consent of the local agency. No additional hearings
15or procedures are required, and the unanimous approval shall be
16deemed to constitute a unanimous vote in favor of the proposed
17changes. If the proceeds of a special tax are being used to retire
18any debt incurred pursuant to this chapter and the unanimous
19approval relates to the reduction of the special tax rate, the
20unanimous approval shall recite that the reduction or termination
21of 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
26created and authorized to levy specified special taxes pursuant to
27Article 2 (commencing with Section 53318), Article 3
28(commencing with Section 53330), or Article 3.5 (commencing
29with Section 53339), the legislative body may, by ordinance, levy
30the special taxes at the rate and apportion them in the manner
31specified in the resolution adopted pursuant to Article 2
32(commencing with Section 53318), Article 3 (commencing with
33Section 53330), or Article 3.5 (commencing with Section 53339).
34After creation of a community facilities district that includes
35territory proposed for annexation in the future by unanimous
36approval as described in subdivision (b) of Section 53339.3, the
37legislative body may, by ordinance, provide for the levy of special
38taxes on parcels that will be annexed to the community facilities
39district at the rate or rates to be approved unanimously by the
40owner or owners of each parcel or parcels to be annexed to the
P19 1community facilities district and for apportionment and collection
2of the special taxes in the manner specified in the resolution of
4(b) The legislative body may provide, by resolution, for the levy
5of the special tax in the current tax year or future tax years at the
6same rate or at a lower rate than the rate provided by the ordinance,
7if the resolution is adopted and a certified list of all parcels subject
8to the special tax levy including the amount of the tax to be levied
9on each parcel for the applicable tax year, is filed by the clerk or
10other official designated by the legislative body with the county
11auditor on or before the 10th day of August of that tax year. The
12clerk or other official designated by the legislative body may file
13the certified list after the 10th of August but not later than the 21st
14of August if the clerk or other official obtains prior written consent
15of the county auditor.
16(c) Properties or entities of the state, federal, or local
17governments shall, except for properties that a local agency is a
18landowner of within the meaning of subdivision (f) of Section
1953317, or except as otherwise provided in Section 53317.3, be
20exempt from the special tax. No other properties or entities are
21exempt from the special tax unless the properties or entities are
22expressly exempted in the resolution of formation to establish a
23district adopted pursuant to Section 53325.1 or in a resolution of
24consideration to levy a new special tax or special taxes or to alter
25the rate or method of apportionment of an existing special tax as
26provided in Section 53334.
27(d) The proceeds of any special tax may only be used to pay,
28in whole or part, the cost of providing public facilities, services,
29and incidental expenses pursuant to this chapter.
30(e) The special tax shall be collected in the same manner as
31ordinary ad valorem property taxes are collected and shall be
32subject to the same penalties and the same procedure, sale, and
33lien priority in case of delinquency as is provided for ad valorem
34taxes, unless another procedure has been authorized in the
35resolution of formation establishing the district and adopted by
36the legislative body.
37(f) (1) Notwithstanding subdivision (e), the legislative body of
38the district may waive all or any specified portion of the
39delinquency penalties and redemption penalties if it makes all of
40the following determinations:
P20 1(A) The waivers shall apply only to parcels delinquent at the
2time of the determination.
3(B) The waivers shall be available only with respect to parcels
4for which all past due and currently due special taxes and all other
5costs due are paid in full within a limited period of time specified
6in the determination.
7(C) The waivers shall be available only with respect to parcels
8sold or otherwise transferred to new owners unrelated to the owner
9responsible for the delinquency.
10(D) The waivers are in the best interest of the debtholders.
11(2) The charges with penalties to be waived shall be removed
12 from the tax roll pursuant to Section 53356.2 and local
13administrative procedures, and any distributions made to the district
14prior to collection pursuant to Chapter 3 (commencing with Section
154701) of Part 8 of Division 1 of the Revenue and Taxation Code
16shall be repaid by the district prior to granting the waiver.
17(g) The tax collector may collect the special tax at intervals as
18specified in the resolution of formation, including intervals
19different from the intervals determining when the ordinary ad
20valorem property taxes are collected. The tax collector may deduct
21the reasonable administrative costs incurred in collecting the special
23(h) All special taxes levied by a community facilities district
24shall be secured by the lien imposed pursuant to Section 3115.5
25of the Streets and Highways Code. This lien shall be a continuing
26lien and shall secure each levy of special taxes. The lien of the
27special tax shall continue in force and effect until the special tax
28obligation is prepaid, permanently satisfied, and canceled in
29accordance with Section 53344 or until the special tax ceases to
30be levied by the legislative body in the manner provided in Section
3153330.5. If any portion of a parcel is encumbered by a lien pursuant
32to 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
37financing of, specified public facilities, the legislative body may
38by resolution designate a portion or portions of the district as one
39or more improvement areas. An area shall be known as
40“Improvement Area No. ____” of “Community Facilities District
P21 1____.” After the designation of an improvement area, all
2proceedings for purposes of a bond election and for the purpose
3of levying special taxes for payment of the bonds, or for any other
4change pursuant to Article 3 (commencing with Section 53330),
5shall apply only to the improvement area for those specified
connection with the annexation by unanimous approval
8to a community facilities district of a parcel that was included in
9territory proposed for annexation in the future to the community
10facilities district, as described in Section 53329.6, the local agency
11may designate a parcel or parcels as an improvement area within
12the community facilities district. The designation of a parcel or
13parcels as an improvement area shall be specified and approved
14by the unanimous approval of the owner or owners of each parcel
15or parcels at the time that the parcel or parcels are annexed to the
16community facilities district. No additional hearings or procedures
17are required. After the designation of a parcel or parcels as an
18improvement area, all proceedings for approval of the
19appropriations limit, the rate and method of apportionment and
20manner of collection of special taxes, and the authorization to incur
21bonded indebtedness for the parcel or parcels shall apply only to
22the improvement area.
Section 53357.1 is added to the Government Code, to
(a) In connection with the issuance of bonds in which
26a property owner agrees, by written consent, to disclose certain
27information on a continuous basis through the Municipal Securities
28Rulemaking Board’s Electronic Municipal Market Access, or
29successor information depository, the local agency may execute
30and record in the office of the county recorder, in which the
31community facilities district is located, a notice of the owner’s
32disclosure agreement for the purpose of providing notice to a
33subsequent transferee. The owner’s written consent shall be
34attached to the notice.
begin delete The county recorder’s office shall accept
35the notice.end delete
36(b) A subsequent transferee of the property shall be subject to
37the disclosure obligation. Upon the termination of the disclosure
38obligation, the local agency may cause a notice of termination to
39be recorded with the office of the county recorder in which the
P22 1original notice was recorded.
begin delete The county recorder’s office shall
2accept the notice of termination.end delete
Section 53363.9 of the Government Code is amended
(a) The proceeds and investments in the “refunding
9fund” shall be in an amount sufficient to meet either the
10requirements of paragraph (1) or paragraph (2) at the time of
11issuance of the refunding bonds, as certified by a certified public
12accountant licensed to practice in this state.
13(1) The proceeds and investments, together with any interest or
14other gain to be derived from any such investment, shall be in an
15amount sufficient to pay the principal, interest, and redemption
16premiums, if any, on the refunded bonds as they become due or
17at designated dates prior to maturity and the designated costs of
18issuance of the refunding bonds.
19(2) The proceeds and investments, together with any interest or
20other gain to be derived from any such investment, shall be in an
21amount sufficient to pay the principal, interest, and redemption
22premiums, if any, on the refunding bonds prior to the maturity of
23the bonds to be refunded or prior to a designated date or dates
24before the maturity of the bonds to be refunded, the principal and
25any redemption premiums due on the refunded bonds at maturity
26or upon that designated date or dates, and the designated costs of
27issuance of the refunding bonds.
28(b) The proceeds and any other cash in the “refunding fund”
29shall be held uninvested or shall be invested in noncallable
30obligations of, or obligations guaranteed as to principal and interest
31by, the United States of America or any agency or instrumentality
32thereof, when those obligations are backed by the full faith and
33credit of the United States of America, and shall be in an amount
34sufficient to pay the principal, interest, and redemption premiums,
35if any, on the refunded bonds as they become due or at designated
36dates prior to maturity, in which case certification of a certified
37public accountant licensed to practice in this state shall not be