Amended in Senate June 30, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 313


Introduced by Assembly Member Atkins

February 12, 2015


An act to amend Sectionsbegin insert 53398.51, 53398.51.1,end insert 53398.52, 53398.56, 53398.57, 53398.62, 53398.63,begin insert 53398.64,end insert 53398.66, 53398.67, 53398.68, 53398.69, and 53398.75 of, and to repeal and add Section 53398.74 of, the Government Code, relating to enhanced infrastructure financing districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 313, as amended, Atkins. Enhanced infrastructure financing districts.

Existing law authorizes the legislative body of a city or a county, defined to include a city and county, to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase. Existing law requires proceedings for the establishment of a district to be instituted by the adoption of a resolution of intention to establish the proposed district, and imposes specified duties on the legislative body with respect to the preparation, proposal, and adoption of an infrastructure financing plan after that resolution of intent is adopted.

Existing law also requires the legislative body to establish a public financing authority, defined as the governing board of the enhanced infrastructure financing authority, prior to the adoption of a resolution to form an enhanced infrastructure district and infrastructure financing plan.

begin insert end insertThis bill would require, after the adoption of a resolution of intention to establish the proposed district, the legislative body to send a copy of the resolution to the public financing authority. This bill would revise the duties of the public financing authority after the resolution of intention to establish the proposed district has been adopted, so that the public financing authority, instead of the legislative body, will perform the specified duties related to the preparation, proposal, and adoption of the infrastructure financing plan and the adoption of the formation of the district.begin insert The bill would also require the legislative body to establish the public financing authority at the same time that it adopts a resolution of intention.end insert

This bill would provide that if a resolution is adopted to abandon proceedings to adopt the infrastructure financing plan, then the public financing authority ceases to exist and the legislative body is prohibited from enacting a resolution of intent to establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.

This bill would authorize the enhanced infrastructure financing district to finance the acquisition, construction, or rehabilitation of housing for persons of very low income for rent or purchase, as provided.

Existing law authorizes an enhanced infrastructure financing district to utilize any powers under the Polanco Redevelopment Act, which authorizes a redevelopment agency to take action to remedy or remove a release of hazardous substances on, under, or from property, subject to specified conditions. Existing law also authorizes a local agency to take any action similar to that authorized under the Polanco Redevelopment Act.

This bill would instead authorize an enhanced infrastructure financing district to utilize any powers under either law.

Existing law requires the infrastructure financing plan to provided for specific actions if any dwelling units are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, including, but not limited to, causing or requiring the construction or rehabilitation, for rent or sale to persons or families of low or moderate income, of an equal number of replacement dwelling units at affordable housing cost within the territory of the district and providing relocation assistance to persons displaced by any public or private development occurring within the territory of the district.

This bill would revise and recast those provisions, and would require the infrastructure financing plan to contain those provisions if any dwelling units are proposed to be removed or destroyed either in the course of private development that is financed by the district or by public works construction resulting from the infrastructure financing plan.

Article XIIIB of the California Constitution (Article XIII B) prohibits the annual appropriations subject to limitation of a local government, defined to include a special district, from exceeding its annual appropriations limit, but allows for that appropriations limit to be established or changed by the electors of that entity in conformity with existing constitutional and statutory laws. Article XIII B defines “appropriations subject to limitation” as any authorization to expend during a fiscal year the proceeds of taxes levied by or for that entity. Existing law allows the public financing authority to submit a proposition to establish or change the appropriations limit of an enhanced infrastructure financing district to the qualified electors of a proposed or established district, which is effective if approved by the qualified electors.

Existing law also authorizes an enhanced infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxingbegin delete entities, as defined.end deletebegin insert entities. Existing law defines “affected taxing entity” as any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district.end insert

This bill would repeal those provisions allowing the public financing authority to submit a proposition to establish or change the appropriations limit of the district, and instead provide that the allocation and payment to an enhanced infrastructure district of tax increment for the purpose of paying specified amounts incurred by the district is not the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B, and is not the receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B.

begin insert

This bill would also expand the definition of “affected taxing entity” to include a special district, as defined, if the special district is providing any portion of the funding included in the infrastructure financing plan.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 53398.51 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

53398.51.  

Unless the context otherwise requires, the definitions
4contained in this article shall govern the construction of this
5chapter.

6(a) “Affected taxing entity” means any governmental taxing
7agency which levied or had levied on its behalf a property tax on
8all or a portion of the property located in the proposed district in
9the fiscal year prior to the designation of the district, but not
10including any county office of education, school district, or
11community college district.begin insert An “affected taxing entity” may include
12a special district if the special district is providing any portion of
13the funding included in the infrastructure financing plan adopted
14pursuant to Section 53398.63. For the purposes of this section,
15“special district” means an agency of the state formed for the
16performance of governmental or proprietary functions within
17limited geographic boundaries, and shall not include a school
18district or community college district.end insert

19(b) “County” means a county or a city and county.

20(c) “Debt” means any binding obligation to repay a sum of
21money, including obligations in the form of bonds, certificates of
22participation, long-term leases, loans from government agencies,
23or loans from banks, other financial institutions, private businesses,
24or individuals.

25(d) “Designated official” means the city or county engineer or
26other appropriate official designated pursuant to Section 53398.62.

27(e) (1) “District” means an enhanced infrastructure financing
28district.

29(2) An enhanced infrastructure financing district is a district
30within the meaning of Section 1 of Article XIII A of the California
31Constitution.

P5    1(f) “Enhanced infrastructure financing district” means a legally
2constituted governmental entity separate and distinct from the city
3or county that established it pursuant to this chapter for the sole
4purpose of financing public facilities or other projects as authorized
5by this chapter. An enhanced infrastructure financing district shall
6be a local agency for purposes of Chapter 9 (commencing with
7Section 54950).

8(g) “Landowner” or “owner of land” means any person shown
9as the owner of land on the last equalized assessment roll or
10otherwise known to be the owner of the land by the legislative
11body. The legislative body has no obligation to obtain other
12information as to the ownership of land, and its determination of
13ownership shall be final and conclusive for the purposes of this
14chapter. A public agency is not a landowner or owner of land for
15purposes of this chapter, unless the public agency owns all of the
16land to be included within the proposed district.

17(h) “Legislative body” means the city council or board of
18supervisors.

19(i) “Public financing authority” means the governing board of
20the district established pursuant to this chapter.

21begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 53398.51.1 of the end insertbegin insertGovernment Codeend insertbegin insert is
22amended to read:end insert

23

53398.51.1.  

(a) The public financing authority shall have a
24membership consisting of one of the following, as appropriate:

25(1) If a district has only one participating affected taxing entity,
26the public financing authority’s membership shall consist of three
27members of the legislative body of the participating entity, and
28two members of the public chosen by the legislative body. The
29appointment of the public members shall be subject to the
30provisions of Section 54974.

31(2) If a district has two or more participating affected taxing
32entities, the public financing authority’s membership shall consist
33of a majority of members from the legislative bodies of the
34participating entities, and a minimum of two members of the public
35chosen by the legislative bodies of the participating entities. The
36appointment of the public members shall be subject to the
37provisions of Section 54974.

38(b) The legislative body shall ensure the public financing
39authority is establishedbegin delete prior to adoptingend deletebegin insert at the same time that it
40adoptsend insert
a resolutionbegin insert of intentionend insert pursuant to Sectionbegin delete 53398.69 to
P6    1adopt an infrastructure financing plan and to form a district.end delete

2begin insert 53398.59.end insert

3(c)  Members of the public financing authority established
4pursuant to this chapter shall not receive compensation but may
5receive reimbursement for actual and necessary expenses incurred
6in the performance of official duties pursuant to Article 2.3
7(commencing with Section 53232) of Chapter 2.

8(d)  Members of the public financing authority are subject to
9Article 2.4 (commencing with Section 53234) of Chapter 2.

10(e)  The public financing authority created pursuant to this
11chapter shall be a local public agency subject to the Ralph M.
12Brown Act (Chapter 9 (commencing with Section 54950)), the
13California Public Records Act (Chapter 3.5 (commencing with
14Section 6250) of Division 7 of Title 1), and the Political Reform
15Act of 1974 (Title 9 (commencing with Section 81000)).

16

begin deleteSECTION 1.end delete
17begin insertSEC. 3.end insert  

Section 53398.52 of the Government Code is amended
18to read:

19

53398.52.  

(a) (1) A district may finance any of the following:

20(A) The purchase, construction, expansion, improvement,
21seismic retrofit, or rehabilitation of any real or other tangible
22property with an estimated useful life of 15 years or longer that
23satisfies the requirements of subdivision (b).

24(B) The planning and design work that is directly related to the
25purchase, construction, expansion, or rehabilitation of property.

26(C) The costs described in Sections 53398.56 and 53398.57.

27(2) The facilities need not be physically located within the
28boundaries of the district. However, any facilities financed outside
29of a district must have a tangible connection to the work of the
30district, as detailed in the infrastructure financing plan adopted
31pursuant to Section 53398.69.

32(3) A district may not finance routine maintenance, repair work,
33or the costs of an ongoing operation or providing services of any
34kind.

35(b) The district shall finance only public capital facilities or
36other specified projects of communitywide significance that
37provide significant benefits to the district or the surrounding
38community, including, but not limited to, all of the following:

39(1) Highways, interchanges, ramps and bridges, arterial streets,
40parking facilities, and transit facilities.

P7    1(2) Sewage treatment and water reclamation plants and
2interceptor pipes.

3(3) Facilities for the collection and treatment of water for urban
4uses.

5(4) Flood control levees and dams, retention basins, and drainage
6channels.

7(5) Child care facilities.

8(6) Libraries.

9(7) Parks, recreational facilities, and open space.

10(8) Facilities for the transfer and disposal of solid waste,
11including transfer stations and vehicles.

12(9) Brownfield restoration and other environmental mitigation.

13(10) The development of projects on a former military base,
14provided that the projects are consistent with the military base
15authority reuse plan and are approved by the military base reuse
16authority, if applicable.

17(11) The repayment of the transfer of funds to a military base
18reuse authority pursuant to Section 67851 that occurred on or after
19the creation of the district.

20(12) The acquisition, construction, or rehabilitation of housing
21for persons of very low, low, and moderate income, as defined in
22Sections 50105 and 50093 of the Health and Safety Code, for rent
23or purchase.

24(13) Acquisition, construction, or repair of industrial structures
25for private use.

26(14) Transit priority projects, as defined in Section 21155 of
27the Public Resources Code, that are located within a transit priority
28project area. For purposes of this paragraph, a transit priority
29project area may include a military base reuse plan that meets the
30definition of a transit priority project area and it may include a
31contaminated site within a transit priority project area.

32(15) Projects that implement a sustainable communities strategy,
33when the State Air Resources Board, pursuant to Chapter 2.5
34(commencing with Section 65080) of Division 2 of Title 7, has
35accepted a metropolitan planning organization’s determination
36that the sustainable communities strategy or the alternative planning
37strategy would, if implemented, achieve the greenhouse gas
38emission reduction targets.

39(c) The district shall require, by recorded covenants or
40restrictions, that housing units built pursuant to this section shall
P8    1remain available at affordable housing costs to, and occupied by,
2persons and families of very low, low, or moderate-income
3households for the longest feasible time, but for not less than 55
4years for rental units and 45 years for owner-occupied units.

5(d) The district may finance mixed-income housing
6developments, but may finance only those units in such a
7development that are restricted to occupancy by persons of very
8low, low, or moderate incomes as defined in Sections 50105 and
950093 of the Health and Safety Code, and those onsite facilities
10for child care, after-school care, and social services that are
11integrally linked to the tenants of the restricted units.

12(e) A district may utilize any powers under either the Polanco
13Redevelopment Act (Article 12.5 (commencing with Section
1433459) of Chapter 4 of Part 1 of Division 24 of the Health and
15Safety Code) or Chapter 6.10 (commencing with Section 25403)
16of Division 20 of the Health and Safety Code, and finance any
17action necessary to implement that act.

18

begin deleteSEC. 2.end delete
19begin insertSEC. 4.end insert  

Section 53398.56 of the Government Code is amended
20to read:

21

53398.56.  

It is the intent of the Legislature that the creation of
22the districts should not ordinarily lead to the removal of existing
23dwelling units. If, however, any dwelling units are proposed to be
24removed or destroyed in the course of private development that is
25financed by the district or public works construction as a result of
26the infrastructure financing plan adopted pursuant to Section
2753398.69, then that infrastructure financing plan shall contain
28provisions to do all of the following:

29(a) If the dwelling units to be removed or destroyed are or were
30inhabited by persons or families of very low, low, or moderate
31income, as defined in Sections 50105 and 50093 of the Health and
32Safety Code, at any time within five years prior to establishment
33of the district, cause or require the construction or rehabilitation
34of an equal number of replacement dwelling units, within one-half
35mile of the location of the units to be removed or destroyed, that
36have an equal or greater number of bedrooms as those removed
37or destroyed units, within two years of the removal or destruction
38of the dwelling units. The replacement dwelling units shall be
39available for rent or sale to persons or families of very low, low,
40or moderate income, at affordable rent, as defined in Section 50053
P9    1of the Health and Safety Code, or at affordable housing cost, as
2defined in Section 50052.5 of the Health and Safety Code, to
3persons in the same or a lower income category (extremely low,
4very low, low, or moderate), as the persons displaced from, or who
5last occupied, the removed or destroyed dwelling units.

6(b) If the dwelling units to be removed or destroyed were not
7inhabited by persons of low or moderate income within the period
8of time specified in subdivision (a), cause or require the
9construction or rehabilitation within one-half mile of the location
10of the units to be removed or destroyed of at least one unit but not
11less than 25 percent of the total dwelling units removed or
12destroyed, within two years of the removal or destruction of the
13dwelling units. The units constructed or rehabilitated pursuant to
14this subdivision shall be of equivalent size and type to the units to
15be removed or destroyed. An equal percentage of the replacement
16dwelling units constructed or rehabilitated pursuant to this
17subdivision shall be available for rent or sale at affordable rent, as
18defined in Section 50053 of the Health and Safety Code, or
19affordable housing cost, as defined in Section 50052.5 of the Health
20and Safety Code, to extremely low and very low income persons
21or families, as defined in Sections 50106 and 50105 of the Health
22and Safety Code.

23(c) Comply with all relocation assistance requirements of
24Chapter 16 (commencing with Section 7260) of Division 7 of Title
251, for persons displaced from dwelling units by any public or
26private action occurring as a result of the infrastructure financing
27plan adopted pursuant to Section 53398.69. The displacement of
28any persons from a dwelling unit as a result of the plan shall be
29deemed to be the result of public action.

30(d) Ensure that removal or destruction of any dwelling units
31occupied by persons or families of low or moderate income not
32take place unless and until there has been full compliance with the
33relocation assistance requirements of this section, Section
3453398.63, and Chapter 16 (commencing with Section 7260) of
35Division 7 of Title 1.

36(e) (1) The district shall require, by recorded covenants or
37restrictions, that all dwelling units constructed or rehabilitated
38pursuant to this section shall remain available at affordable rent
39or housing cost to, and occupied by, persons and families of the
40same income categories as required by subdivision (a) or (b), as
P10   1applicable, for the longest feasible time, but for not less than 55
2years for rental units and 45 years for owner-occupied units.

3(2) The district may permit sales of owner-occupied units prior
4to the expiration of the 45-year period for a price in excess of that
5otherwise permitted under this subdivision pursuant to an adopted
6program which protects the district’s investment of moneys in the
7unit or units, including, but not limited to, an equity sharing
8program, not in conflict with another public funding source or law,
9which establishes a schedule of equity sharing that permits
10retention by the seller of a portion of those excess proceeds based
11on the length of occupancy. For purposes of this paragraph, the
12terms of the equity sharing program shall be consistent with the
13provisions of paragraph (2) of subdivision (c) of Section 65915,
14provided, however, that the program shall require any amounts
15recaptured by the district to be used within five years for any of
16the affordable housing purposes described in Section 34176.1 of
17the Health and Safety Code.

18

begin deleteSEC. 3.end delete
19begin insertSEC. 5.end insert  

Section 53398.57 of the Government Code is amended
20to read:

21

53398.57.  

Any action or proceeding to attack, review, set aside,
22void, or annul the creation of a district, adoption of an infrastructure
23financing plan, including a division of taxes thereunder, or an
24election pursuant to this chapter shall be commenced within 30
25days after the enactment of the resolution creating the district
26pursuant to Section 53398.69. Consistent with the time limitations
27of this section, such an action or proceeding with respect to a
28division of taxes under this chapter may be brought pursuant to
29Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
30the Code of Civil Procedure.

31

begin deleteSEC. 4.end delete
32begin insertSEC. 6.end insert  

Section 53398.62 of the Government Code is amended
33to read:

34

53398.62.  

After adopting the resolution pursuant to Section
3553398.59, the legislative body shall send a copy of the resolution
36to the public financing authority. The public financing authority
37shall designate and direct the city or county engineer or other
38appropriate official to prepare an infrastructurebegin insert financingend insert plan
39pursuant to Section 53398.63.

P11   1

begin deleteSEC. 5.end delete
2begin insertSEC. 7.end insert  

Section 53398.63 of the Government Code is amended
3to read:

4

53398.63.  

After receipt of a copy of the resolution of intention
5to establish a district, the official designated pursuant to Section
653395.62 shall prepare a proposed infrastructure financing plan.
7The infrastructure financing plan shall be consistent with the
8general plan of the city or county within which the district is
9located and shall include all of the following:

10(a) A map and legal description of the proposed district, which
11may include all or a portion of the district designated by the
12legislative body in its resolution of intention.

13(b) A description of the public facilities and other forms of
14development or financial assistance that is proposed in the area of
15the district, including those to be provided by the private sector,
16those to be provided by governmental entities without assistance
17under this chapter, those public improvements and facilities to be
18financed with assistance from the proposed district, and those to
19be provided jointly. The description shall include the proposed
20location, timing, and costs of the development and financial
21assistance.

22(c) If funding from affected taxing entities is incorporated into
23the financing plan, a finding that the development and financial
24assistance are of communitywide significance and provide
25significant benefits to an area larger than the area of the district.

26(d) A financing section, which shall contain all of the following
27information:

28(1) A specification of the maximum portion of the incremental
29tax revenue of the city or county and of each affected taxing entity
30proposed to be committed to the district for each year during which
31the district will receive incremental tax revenue. The portion need
32not be the same for all affected taxing entities. The portion may
33change over time.

34(2) A projection of the amount of tax revenues expected to be
35received by the district in each year during which the district will
36receive tax revenues, including an estimate of the amount of tax
37revenues attributable to each affected taxing entity for each year.

38(3) A plan for financing the public facilities to be assisted by
39the district, including a detailed description of any intention to
40incur debt.

P12   1(4) A limit on the total number of dollars of taxes that may be
2allocated to the district pursuant to the plan.

3(5) A date on which the district will cease to exist, by which
4time all tax allocation to the district will end. The date shall not
5be more than 45 years from the date on which the issuance of bonds
6is approved pursuant to subdivision (a) of Section 53398.81, or
7the issuance of a loan is approved by the governing board of a
8local agency pursuant to Section 53398.87.

9(6) An analysis of the costs to the city or county of providing
10facilities and services to the area of the district while the area is
11being developed and after the area is developed. The plan shall
12also include an analysis of the tax, fee, charge, and other revenues
13expected to be received by the city or county as a result of expected
14development in the area of the district.

15(7) An analysis of the projected fiscal impact of the district and
16the associated development upon each affected taxing entity.

17(8) A plan for financing any potential costs that may be incurred
18by reimbursing a developer of a project that is both located entirely
19within the boundaries of that district and qualifies for the Transit
20Priority Project Program, pursuant to Section 65470, including
21any permit and affordable housing expenses related to the project.

22(e) If any dwelling units within the territory of the district are
23proposed to be removed or destroyed in the course of private
24development or public works construction within the territory of
25the district, a plan providing for replacement of those units and
26relocation of those persons or families consistent with the
27requirements of Section 53398.56.

28(f) The goals the district proposes to achieve for each project
29financed pursuant to Section 53398.52.

30begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 53398.64 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

53398.64.  

The infrastructure financing plan shall be sent to
33each owner of land within the proposed district and to each affected
34taxing entity together with any report required by the California
35Environmental Quality Act (Division 13 (commencing with Section
3621000) of the Public Resources Code) that pertains to the proposed
37public facilities or the proposed development project for which
38the public facilities are needed, and shall be made available for
39public inspection. The report shall also be sent tobegin insert the public
P13   1financing authority,end insert
the planningbegin delete commissionend deletebegin insert commission,end insert and
2the legislative body.

3

begin deleteSEC. 6.end delete
4begin insertSEC. 9.end insert  

Section 53398.66 of the Government Code is amended
5to read:

6

53398.66.  

The public financing authority shall conduct a public
7hearing prior to adopting the proposed infrastructure financing
8plan. The public hearing shall be called no sooner than 60 days
9after the plan has been sent to each affected taxing entity. In
10addition to the notice given to landowners and affected taxing
11entities pursuant to Sections 53398.60 and 53398.61, notice of the
12public hearing shall be given by publication not less than once a
13week for four successive weeks in a newspaper of general
14circulation published in the city or county in which the proposed
15district is located. The notice shall state that the district will be
16used to finance public facilities or development, briefly describe
17the public facilities or development, briefly describe the proposed
18 financial arrangements, including the proposed commitment of
19incremental tax revenue, describe the boundaries of the proposed
20district and state the day, hour, and place when and where any
21persons having any objections to the proposed infrastructure
22financing plan, or the regularity of any of the prior proceedings,
23may appear before the public financing authority and object to the
24adoption of the proposed plan by the public financing authority.

25

begin deleteSEC. 7.end delete
26begin insertSEC. 10.end insert  

Section 53398.67 of the Government Code is amended
27to read:

28

53398.67.  

At the hour set in the required notices, the public
29financing authority shall proceed to hear and pass upon all written
30and oral objections. The hearing may be continued from time to
31time. The public financing authority shall consider the
32recommendations, if any, of affected taxing entities, and all
33evidence and testimony for and against the adoption of the plan.
34The public financing authority may modify the plan by eliminating
35or reducing the size and cost of proposed facilities or development,
36by reducing the amount of proposed debt, or by reducing the
37portion, amount, or duration of incremental tax revenues to be
38committed to the district.

P14   1

begin deleteSEC. 8.end delete
2begin insertSEC. 11.end insert  

Section 53398.68 of the Government Code is amended
3to read:

4

53398.68.  

(a) The public financing authority shall not enact
5a resolution proposing formation of a district and providing for
6the division of taxes of any affected taxing entity pursuant to
7Article 3 (commencing with Section 53398.75) unless a resolution
8approving the plan has been adopted by the governing body of
9each affected taxing entity which is proposed to be subject to
10division of taxes pursuant to Article 3 (commencing with Section
1153398.75) and has been filed with the legislative body at or prior
12to the time of the hearing.

13(b) Nothing in this section shall be construed to prevent the
14 public financing authority from amending its infrastructure
15financing plan and adopting a resolution proposing formation of
16the enhanced infrastructure financing district without allocation
17of the tax revenues of any affected taxing entity that has not
18approved the infrastructure financing plan by resolution of the
19governing body of the affected taxing entity.

20

begin deleteSEC. 9.end delete
21begin insertSEC. 12.end insert  

Section 53398.69 of the Government Code is amended
22to read:

23

53398.69.  

(a) At the conclusion of the hearing, the public
24financing authority may adopt a resolution proposing adoption of
25the infrastructure financing plan, as modified, and formation of
26the enhanced infrastructure financing district in a manner consistent
27with Section 53398.68, or it may adopt a resolution abandoning
28the proceedings. If the proceedings are abandoned, then the public
29financing authority shall cease to exist by operation of this section
30with no further action required of the legislative body and the
31legislative body may not enact a resolution of intention to establish
32a district that includes the same geographic area within one year
33of the date of the resolution abandoning the proceedings.

34(b) The infrastructure financing plan shall take effect upon the
35adoption of the resolution. The infrastructure financing plan shall
36specify if the district shall be funded solely through the district’s
37share of tax increment, governmental or private loans, grants,
38bonds, assessments, fees, or some combination thereof. However,
39the public financing authority may not issue bonds or levy
P15   1assessments or fees that may be included in the infrastructure
2financing plan prior to one or more of the following:

3(1) An affirmative vote, pursuant to subdivision (a) of Section
453398.81, to issue bonds to finance the infrastructure financing
5plan.

6(2) Compliance with the procedures required in subdivision (f)
7of Section 53398.75, to levy assessments or fees to finance the
8infrastructure financing plan.

9(c) In addition the district may expend up to 10 percent of any
10accrued tax increment in the first two years of the effective date
11of the enhanced infrastructure financing district on planning and
12dissemination of information to the residents within the district’s
13boundaries about the infrastructure financing plan and planned
14activities to be funded by the district.

15

begin deleteSEC. 10.end delete
16begin insertSEC. 13.end insert  

Section 53398.74 of the Government Code is repealed.

17

begin deleteSEC. 11.end delete
18begin insertSEC. 14.end insert  

Section 53398.74 is added to the Government Code,
19to read:

20

53398.74.  

This section implements and fulfills the intent of
21this chapter and of Article XIII B of the California Constitution.
22The allocation and payment to a district of the portion of taxes
23specified in Section 53398.75 for the purpose of paying principal
24of, or interest on, loans, advances, or indebtedness incurred by the
25district pursuant to this chapter, shall not be deemed the receipt
26by a district of proceeds of taxes levied by or on behalf of the
27district within the meaning or for the purposes of Article XIII B
28of the California Constitution, nor shall that portion of taxes be
29deemed receipt of proceeds of taxes by, or an appropriation subject
30to limitation of, any other public body within the meaning or for
31purposes of Article XIII B of the California Constitution or any
32statutory provision enacted in implementation of Article XIII B
33of the California Constitution.

34

begin deleteSEC. 12.end delete
35begin insertSEC. 15.end insert  

Section 53398.75 of the Government Code is amended
36to read:

37

53398.75.  

(a) Any infrastructure financing plan may contain
38a provision that taxes, if any, levied upon taxable property in the
39area included within the enhanced infrastructure financing district
40each year by or for the benefit of the State of California, or any
P16   1affected taxing entity after the effective date of the ordinance
2adopted pursuant to Section 53398.69 to create the district, shall
3be divided as follows:

4(1) That portion of the taxes that would be produced by the rate
5upon which the tax is levied each year by or for each of the affected
6taxing entities upon the total sum of the assessed value of the
7taxable property in the district as shown upon the assessment roll
8used in connection with the taxation of the property by the affected
9taxing entity, last equalized prior to the effective date of the
10ordinance adopted pursuant to Section 53398.69 to create the
11district, shall be allocated to, and when collected shall be paid to,
12the respective affected taxing entities as taxes by or for the affected
13taxing entities on all other property are paid.

14(2) That portion of the levied taxes each year specified in the
15adopted infrastructure financing plan for the city or county and
16each affected taxing entity that has agreed to participate pursuant
17to Section 53398.68 in excess of the amount specified in paragraph
18(1) of subdivision (a) shall be allocated to, and when collected
19shall be paid into a special fund of, the district for all lawful
20purposes of the district. Unless and until the total assessed valuation
21of the taxable property in a district exceeds the total assessed value
22of the taxable property in the district as shown by the last equalized
23assessment roll referred to in paragraph (1) of subdivision (a), all
24of the taxes levied and collected upon the taxable property in the
25district shall be paid to the respective affected taxing entities. When
26the district ceases to exist pursuant to the adopted infrastructure
27financing plan, all moneys thereafter received from taxes upon the
28taxable property in the district shall be paid to the respective
29affected taxing entities as taxes on all other property are paid.

30(b) Notwithstanding subdivision (a), where any district
31boundaries overlap with the boundaries of any former
32redevelopment project area, any debt or obligation of a district
33shall be subordinate to any and all enforceable obligations of the
34former redevelopment agency, as approved by the Oversight Board
35and the Department of Finance. For the purposes of this chapter,
36the division of taxes allocated to the district pursuant to subdivision
37(a) of this section or of subdivision (b) of Section 53396 shall not
38include any taxes required to be deposited by the county
39auditor-controller into the Redevelopment Property Tax Trust Fund
P17   1created pursuant to subdivision (b) of Section 34170.5 of the Health
2and Safety Code.

3(c) The legislative body of the city or county forming the district
4may choose to dedicate any portion of its net available revenue to
5the district through the financing plan described in Section
653398.63.

7(d) For the purposes of this section, “net available revenue”
8means periodic distributions to the city or county from the
9Redevelopment Property Tax Trust Fund, created pursuant to
10Section 34170.5 of the Health and Safety Code, that are available
11to the city or county after all preexisting legal commitments and
12statutory obligations funded from that revenue are made pursuant
13to Part 1.85 (commencing with Section 34170) of Division 24 of
14the Health and Safety Code. “Net available revenue” shall not
15include any funds deposited by the county auditor-controller into
16the Redevelopment Property Tax Trust Fund or funds remaining
17in the Redevelopment Property Tax Trust Fund prior to distribution.
18Net available revenues shall not include any moneys payable to a
19school district that maintains kindergarten and grades 1 to 12,
20inclusive, community college districts, county office of education,
21or to the Educational Revenue Augmentation Fund, pursuant to
22paragraph (4) of subdivision (a) of Section 34183 of the Health
23and Safety Code.

24(e) (1) That portion of any ad valorem property tax revenue
25annually allocated to a city or county pursuant to Section 97.70 of
26the Revenue and Taxation Code that is specified in the adopted
27 infrastructure financing plan for the city or county that has agreed
28to participate pursuant to Section 53398.68, and that corresponds
29to the increase in the assessed valuation of taxable property shall
30be allocated to,begin delete andend deletebegin insert and,end insert whenbegin delete collectedend deletebegin insert collected,end insert shall be
31apportionedbegin delete toend deletebegin insert to,end insert a special fund of the district for all lawful
32purposes of the district.

33(2) When the district ceases to exist pursuant to the adopted
34infrastructure financing plan, the revenues described in this
35subdivision shall be allocated to,begin delete andend deletebegin insert and,end insert when collected, shall
36be apportionedbegin delete toend deletebegin insert to,end insert the respective city or county.

37(f) This section shall not be construed to prevent a district from
38utilizing revenues from any of the following sources to support its
39activities provided that the applicable voter approval has been
P18   1obtained, and the infrastructure financing plan has been approved
2pursuant to Section 53398.69:

3(1) The Improvement Act of 1911 (Division 7 (commencing
4with Section 5000) of the Streets and Highways Code).

5(2) The Municipal Improvement Act of 1913 (Division 12
6(commencing with Section 10000) of the Streets and Highways
7Code).

8(3) The Improvement Bond Act of 1915 (Division 10
9(commencing with Section 8500) of the Streets and Highways
10Code).

11(4) The Landscaping and Lighting Act of 1972 (Part 2
12(commencing with Section 22500) of Division 15 of the Streets
13and Highways Code).

14(5) The Vehicle Parking District Law of 1943 (Part 1
15(commencing with Section 31500) of Division 18 of the Streets
16and Highways Code).

17(6) The Parking District Law of 1951 (Part 4 (commencing with
18Section 35100) of Division 18 of the Streets and Highways Code).

19(7) The Park and Playground Act of 1909 (Chapter 7
20(commencing with Section 38000) of Part 2 of Division 3 of Title
214 of this code).

22(8) The Mello-Roos Community Facilities Act of 1982 (Chapter
232.5 (commencing with Section 53311) of Part 1 of Division 2 of
24this title).

25(9) The Benefit Assessment Act of 1982 (Chapter 6.4
26(commencing with Section 54703) of Part 1 of Division 2 of this
27title).

28(10) The so-called facilities benefit assessment levied by the
29charter city of San Diego or any substantially similar assessment
30levied for the same purpose by any other charter city pursuant to
31any ordinance or charter provision.



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