Amended in Senate August 25, 2015

Amended in Senate June 30, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 313

Introduced by Assembly Member Atkins

February 12, 2015

An act to amend Sections 53398.51, 53398.51.1, 53398.52, 53398.56, 53398.57, 53398.62, 53398.63, 53398.64, 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.

This 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. 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.

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 begin delete private development that is financed by the district or by public works construction resulting from the infrastructure financing plan. end delete begin insert public works construction or private development within the area of the district subject to a written agreement with the district or financed in whole or in part by the district. end insert

Article XIII begin insert   end insert B 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 taxing 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.

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.

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.

begin insert

This bill would incorporate additional changes in Sections 53398.52, 53398.62, and 53398.69 of the Government Code proposed by SB 63 that would become operative only if SB 63 and this bill are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

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:

SECTION 1.  

Section 53398.51 of the Government Code is
amended to read:

53398.51.  

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

(a) “Affected taxing entity” means 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. An “affected taxing entity” may include
a special district if the special district is providing any portion of
the funding included in the infrastructure financing plan adopted
pursuant to Section 53398.63. For the purposes of this section,
“special district” means an agency of the state formed for the
performance of governmental or proprietary functions within
limited geographic boundaries, and shall not include a school
district or community college district.

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

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

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

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

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

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

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

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

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

SEC. 2.  

Section 53398.51.1 of the Government Code is
amended to read:

53398.51.1.  

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

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

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

(b) The legislative body shall ensure the public financing
authority is established at the same time that it adopts a resolution
of intention pursuant to Section 53398.59.

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

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

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

SEC. 3.  

Section 53398.52 of the Government Code is amended
to read:

53398.52.  

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

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

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

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

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

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

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

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

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

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

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

(5) Child care facilities.

(6) Libraries.

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

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

(9) Brownfield restoration and other environmental mitigation.

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

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

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

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

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

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

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

(d) The district may finance mixed-income housing
developments, but may finance only those units in such a
development that are restricted to occupancy by persons of very
low, low, or moderate incomes as defined in Sections 50105 and
50093 of the Health and Safety Code, and those onsite facilities
for child care, after-school care, and social services that are
integrally linked to the tenants of the restricted units.

(e) A district may utilize any powers under either the Polanco
Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety Code) or Chapter 6.10 (commencing with Section 25403)
of Division 20 of the Health and Safety Code, and finance any
action necessary to implement that act.

begin insert

begin insert SEC. 3.5. end insert   

end insert

begin insert Section 53398.52 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

53398.52.  

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

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

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

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

(2) The facilities begin delete need end delete begin insert are end insert not begin insert required to end insert be physically located
within the boundaries of the district. However, any facilities
financed outside of a district begin delete must end delete begin insert shall end insert have a tangible connection
to the work of the district, as detailed in the infrastructure financing
plan adopted pursuant to Section 53398.69.

(3) A district begin delete may end delete begin insert shall end insert not finance routine maintenance, repair
work, or the costs of an ongoing operation or providing services
of any kind.

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

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

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

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

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

(5) Child care facilities.

(6) Libraries.

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

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

(9) Brownfield restoration and other environmental mitigation.

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

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

(12) The acquisition, construction, or rehabilitation of housing
for persons of begin delete low end delete begin insert very low, low, end insert and moderate income, as defined
in begin delete Section end delete begin insert Sections 50105 and end insert 50093 of the Health and Safety
Code, for rent or purchase.

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

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

(15) Projects that implement a sustainable communities strategy,
when the State Air Resources Board, pursuant to Chapter 2.5
(commencing with Section 65080) of Division begin delete 2 end delete begin insert 1 end insert of Title 7, has
accepted a metropolitan planning organization’s determination
that the sustainable communities strategy or the alternative planning
strategy would, if implemented, achieve the greenhouse gas
emission reduction targets.

begin insert

(16) Port or harbor infrastructure, as defined by Section 1698
of the Harbors and Navigation Code.

end insert

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

(d) The district may finance mixed-income housing
developments, but may finance only those units in such a
development that are restricted to occupancy by persons of begin delete low end delete
begin insert very low, low, end insert or moderate incomes as defined in begin delete Section end delete begin insert Sections
50105 and end insert 50093 of the Health and Safety Code, and those onsite
facilities for child care, after-school care, and social services that
are integrally linked to the tenants of the restricted units.

(e) A district may utilize any powers under begin insert either end insert the Polanco
Redevelopment Act (Article 12.5 (commencing with Section
33459) of Chapter 4 of Part 1 of Division 24 of the Health and
Safety begin delete Code), end delete begin insert Code) or Chapter 6.1 (commencing with Section
25403) of Division 20 of the Health and Safety Code, end insert and finance
any action necessary to implement that act.

SEC. 4.  

Section 53398.56 of the Government Code is amended
to read:

53398.56.  

It is the intent of the Legislature that the creation of
the districts should not ordinarily lead to the removal of existing
dwelling units. If, however, any dwelling units are proposed to be
removed or destroyed in the course of begin delete private development that is
financed by the district or public works construction as a result of end delete
begin insert public works construction within the area of the district or private
development within the area of the district that is subject to a
written agreement with the district or that is financed in whole or
in part by the district then end insert the infrastructure financing plan adopted
pursuant to Section begin delete 53398.69, then that infrastructure financing
plan end delete begin insert 53398.69 end insert shall contain provisions to do all of the following:

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

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

(c) Comply with all relocation assistance requirements of
Chapter 16 (commencing with Section 7260) of Division 7 of Title
1, for persons displaced from dwelling units by any begin delete public or
private action occurring end delete begin insert public works construction within the area
of the district or private development within the area of the district
that is subject to a written agreement with the district or that is
financed in whole or in part by the district end insert as a result of the
infrastructure financing plan adopted pursuant to Section 53398.69.
The displacement of any persons from a dwelling unit as a result
of the plan shall be deemed to be the result of public action.

(d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not
take place unless and until there has been full compliance with the
relocation assistance requirements of this section, Section
53398.63, and Chapter 16 (commencing with Section 7260) of
Division 7 of Title 1.

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

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

SEC. 5.  

Section 53398.57 of the Government Code is amended
to read:

53398.57.  

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

SEC. 6.  

Section 53398.62 of the Government Code is amended
to read:

53398.62.  

After adopting the resolution pursuant to Section
53398.59, the legislative body shall send a copy of the resolution
to the public financing authority. The public financing authority
shall designate and direct the city or county engineer or other
appropriate official to prepare an infrastructure financing plan
pursuant to Section 53398.63.

begin insert

begin insert SEC. 6.5. end insert   

end insert

begin insert Section 53398.62 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

53398.62.  

begin delete After end delete begin insert (a) end insert begin insert   end insert begin insert Except as provided in subdivision (b),
after end insert adopting the resolution pursuant to Section 53398.59, the
legislative body shall begin insert send a copy of the resolution to the public
financing authority. The public financing authority shall end insert designate
and direct the city or county engineer or other appropriate official
to prepare an infrastructure begin insert financing end insert plan pursuant to Section
53398.63.

begin insert

(b) In the case of a district proposed for port or harbor
infrastructure, the legislative body shall designate and direct the
harbor agency, except as provided in Section 1719 of the Harbors
and Navigation Code, to prepare an infrastructure financing plan
pursuant to Section 53398.63.

end insert

SEC. 7.  

Section 53398.63 of the Government Code is amended
to read:

53398.63.  

After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.62 shall prepare a proposed infrastructure financing plan.
The infrastructure financing plan shall be consistent with the
general plan of the city or county within which the district is
located and shall include all of the following:

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

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

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

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

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

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

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

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

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

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

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

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

(e) If any dwelling units within the territory of the district are
proposed to be removed or destroyed in the course of begin delete private
development or public works construction within the territory of
the district, end delete begin insert public works construction within the area of the district
or private development within the area of the district that is subject
to a written agreement with the district or that is financed in whole
or in part by the district, end insert a plan providing for replacement of those
units and relocation of those persons or families consistent with
the requirements of Section 53398.56.

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

SEC. 8.  

Section 53398.64 of the Government Code is amended
to read:

53398.64.  

The infrastructure financing plan shall be sent to
each owner of land within the proposed district and to each affected
taxing entity together with any report required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) that pertains to the proposed
public facilities or the proposed development project for which
the public facilities are needed, and shall be made available for
public inspection. The report shall also be sent to the public
financing authority, the planning commission, and the legislative
body.

SEC. 9.  

Section 53398.66 of the Government Code is amended
to read:

53398.66.  

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

SEC. 10.  

Section 53398.67 of the Government Code is amended
to read:

53398.67.  

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

SEC. 11.  

Section 53398.68 of the Government Code is amended
to read:

53398.68.  

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

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

SEC. 12.  

Section 53398.69 of the Government Code is amended
to read:

53398.69.  

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

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

(1) An affirmative vote, pursuant to subdivision (a) of Section
53398.81, to issue bonds to finance the infrastructure financing
plan.

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

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

begin insert

begin insert SEC. 12.5. end insert   

end insert

begin insert Section 53398.69 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

53398.69.  

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

(b) The infrastructure financing plan begin delete and the formation of the
enhanced infrastructure financing district end delete shall take effect upon
the begin delete legislative body’s end delete adoption of the resolution. The infrastructure
financing plan shall specify if the district shall be funded solely
through the district’s share of tax increment, governmental or
private loans, grants, bonds, assessments, fees, or some
combination thereof. However, the public financing authority begin delete may end delete
begin insert shall end insert not issue bonds or levy assessments or fees that may be
included in the infrastructure financing plan begin delete prior to end delete begin insert before end insert one or
more of the following:

(1) An affirmative vote, pursuant to subdivision (a) of Section
begin delete 53398.81, end delete begin insert 53398.81 and, if applicable, subdivision (c) of Section
53398.80.5, end insert to issue bonds to finance the infrastructure financing
plan.

(2)  begin delete Without compliance end delete begin insert Compliance end insert with the procedures
required in subdivision (f) of Section 53398.75, to levy assessments
or fees to finance the infrastructure financing plan.

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

SEC. 13.  

Section 53398.74 of the Government Code is
repealed.

SEC. 14.  

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

53398.74.  

This section implements and fulfills the intent of
this chapter and of Article XIII B of the California Constitution.
The allocation and payment to a district of the portion of taxes
specified in Section 53398.75 for the purpose of paying principal
of, or interest on, loans, advances, or indebtedness incurred by the
district pursuant to this chapter, shall not be deemed 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
of the California Constitution, nor shall that portion of taxes be
deemed 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 of the California Constitution or any
statutory provision enacted in implementation of Article XIII B of
the California Constitution.

SEC. 15.  

Section 53398.75 of the Government Code is amended
to read:

53398.75.  

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

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

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

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

(c) The legislative body of the city or county forming the district
may choose to dedicate any portion of its net available revenue to
the district through the financing plan described in Section
53398.63.

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

(e) (1) That portion of any ad valorem property tax revenue
annually allocated to a city or county pursuant to Section 97.70 of
the Revenue and Taxation Code that is specified in the adopted
infrastructure financing plan for the city or county that has agreed
to participate pursuant to Section 53398.68, and that corresponds
to the increase in the assessed valuation of taxable property shall
be allocated to, and, when collected, shall be apportioned to, a
special fund of the district for all lawful purposes of the district.

(2) When the district ceases to exist pursuant to the adopted
infrastructure financing plan, the revenues described in this
subdivision shall be allocated to, and, when collected, shall be
apportioned to, the respective city or county.

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

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

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

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

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

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

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

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

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

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

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

begin insert

begin insert SEC. 16. end insert   

end insert begin insert

(a) Section 3.5 of this bill incorporates amendments
to Section 53398.52 of the Government Code proposed by both
this bill and Senate Bill 63. It shall only become operative if (1)
both bills are enacted and become effective on or before January
1, 2016, (2) each bill amends Section 53398.52 of the Government
Code, and (3) this bill is enacted after Senate Bill 63, in which
case Section 3 of this bill shall not become operative.

end insert begin insert

(b) Section 6.5 of this bill incorporates amendments to Section
53398.62 of the Government Code proposed by both this bill and
Senate Bill 63. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 53398.62 of the Government Code, and
(3) this bill is enacted after Senate Bill 63, in which case Section
6 of this bill shall not become operative.

end insert begin insert

(c) Section 12.5 of this bill incorporates amendments to Section
53398.69 of the Government Code proposed by both this bill and
Senate Bill 63. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 53398.69 of the Government Code, and
(3) this bill is enacted after Senate Bill 63, in which case Section
12 of this bill shall not become operative.

end insert