BILL NUMBER: AB 313 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 25, 2015
AMENDED IN SENATE JUNE 30, 2015
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 private development that is financed by
the district or by public works construction resulting from the
infrastructure financing plan. 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.
Article XIII 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.
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.
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.
SEC. 3.5. 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 are not
required to be physically located within the boundaries of the
district. However, any facilities financed outside of a district
must shall 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 shall 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 low very low, low, and
moderate income, as defined in Section
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
1 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.
(16) Port or harbor infrastructure, as defined by Section 1698 of
the Harbors and Navigation Code.
(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 low- 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 low
very low, low, or moderate incomes as defined in
Section 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), Code) or Chapter 6.1 (commencing with
Section 25403) of Division 20 of the Health and Safety Code,
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 private
development that is financed by the district or public works
construction as a result of 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
the infrastructure financing plan adopted pursuant to Section
53398.69, then that infrastructure financing plan
53398.69 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 public or
private action occurring 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
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.
SEC. 6.5. Section 53398.62 of the
Government Code is amended to read:
53398.62. After (a)
Except as provided in subdivision (b), 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.
(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.
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
private development or public works construction within the territory
of the district, 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, 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.
SEC. 12.5. Section 53398.69 of the
Government Code is amended to read:
53398.69. (a) At the conclusion of the hearing, the
legislative body 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 abandon the proceedings.
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 and the formation of
the enhanced infrastructure financing district shall take
effect upon the legislative body's 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 shall not issue bonds or
levy assessments or fees that may be included in the infrastructure
financing plan prior to before one or
more of the following:
(1) An affirmative vote, pursuant to subdivision (a) of Section
53398.81, 53398.81 and, if applicable,
subdivision (c) of Section 53398.80.5, to issue bonds to
finance the infrastructure financing plan.
(2) Without compliance 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 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.
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)
of subdivision (a) 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
(1) of subdivision (a), (1), 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.
SEC. 16. (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.
(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.
(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.