BILL ANALYSIS Ó
AB 313
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CONCURRENCE IN SENATE AMENDMENTS
AB
313 (Atkins)
As Amended August 25, 2015
Majority vote
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|ASSEMBLY: |78-0 |(May 14, 2015) |SENATE: |40-0 |(August 31, |
| | | | | |2015) |
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Original Committee Reference: L. GOV.
SUMMARY: Clarifies procedures for replacing dwelling units that
are removed or destroyed within an Enhanced Infrastructure
Financing District (EIFD) and makes other technical changes to
EIFD law.
The Senate amendments:
1)Clarify that 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, and
define, for purposes of the bill, the term "special district"
to mean 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.
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2)Clarify that the legislative body shall ensure that the public
financing authority is established at the same time that it
adopts a resolution of intention, as specified.
3)Clarify that if dwelling units are proposed to be removed or
destroyed in the course of public works construction within
the area of the EIFD or private development within the area of
the EIFD that is subject to a written agreement with the EIFD
or that is financed in whole or in part of the EIFD, then the
infrastructure financing plan shall contain specified
provisions pursuant to the bill's provisions.
4)Contain chaptering out amendments to resolve conflicts with SB
63 (Hall) of the current legislative session.
5)Make other minor, technical corrections.
FISCAL EFFECT: None
COMMENTS:
1)Bill Summary. This bill adds provisions to EIFD law to
clarify the procedures for replacing dwelling units that are
removed or destroyed within an EIFD, and makes a number of
other technical and clarifying changes to update EIFD law.
This bill is author-sponsored.
2)Background on EIFDs. SB 628 (Beall), Chapter, 785, Statutes
of 2014, allowed a city or county to create an EIFD, in order
to finance specified facilities and infrastructure projects,
using tax increment. SB 628 expanded, as compared to existing
IFD law, the public capital facilities or other projects of
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communitywide significance that could be financed by an EIFD,
to include brownfield restoration and other environmental
mitigation, the development of projects on a former military
base, transit priority projects, and projects that implement a
sustainable communities strategy, among other infrastructure
projects. Once formed, the governing board of the EIFD
(referred to as the public financing authority), would be
subject to provisions of the Ralph M. Brown Act, the
California Public Records Act, the Political Reform Act of
1974, and the members of the public financing authority would
be subject to ethics training.
In order to create the EIFD, pursuant to SB 628, the
legislative body of the city or county must adopt a resolution
of intention to establish the proposed district, and mail a
copy of that resolution to each owner of land within the EIFD,
and fix a time and a place for a public hearing on the
proposal. After adopting the resolution of intention to
establish the EIFD, the city or county engineer or other
appropriate official must develop an infrastructure financing
plan to describe the public facilities, funding, an analysis
of costs of the facilities, and the goals the EIFD hopes to
achieve, among other requirements. A designated official is
required to consult with each affected taxing entity, and any
affected taxing entity may suggest revisions to the
infrastructure financing plan.
SB 628 required that this infrastructure financing plan be
sent to each owner of land and to each affected taxing entity
in the boundaries of the proposed EIFD. The legislative body
is required to conduct a public hearing prior to adopting the
proposed infrastructure financing plan, after giving notice of
the hearing. SB 628 prohibited the legislative body from
enacting a resolution proposing the formation of the EIFD and
providing for the division of taxes of any affected taxing
entity 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.
SB 628 allowed for the formation of the EIFD upon the
legislative body's adoption of the resolution, at which point
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the infrastructure financing plan would take effect. If the
EIFD wishes to incur bonded indebtedness, the bill specifies
that a 55% vote of the voters in the EIFD is necessary, and
prescribes the contents of the resolution that must be adopted
by the public financing authority once voters approve the bond
debt. An EIFD must contract for an independent financial and
performance audit every two years after the issuance of debt,
and must be provided to the Controller, the Department of
Finance (DOF), and to the Joint Legislative Budget Committee.
SB 628 provided that an EIFD will cease to exist not more than
45 years from the date on which the issuance of bonds is
approved, or the issuance of a loan is approved by the
governing board of a local agency.
The provisions of SB 628 prohibited a city or county that
created a redevelopment agency (RDA) from initiating the
creation of an EIFD or participating in the governance or
financing of an EIFD, until each of the following has
occurred: a) The successor agency for the former RDA created
by the city or county has received a finding of completion; b)
The city or county certifies to DOF and to the public
financing authority that no former RDA assets that are the
subject of litigation involving the state, where the city or
county, the successor agency, or the designated local
authority are a named plaintiff, have been or will be used to
benefit any efforts of an EIFD, unless the litigation and all
possible appeals have been resolved in a court of law. The
city or county shall provide this certification to DOF within
10 days of its legislative body's action to participate in an
EIFD, as specified, or of its legislative body's action to
form an EIFD;
c) The office of the Controller has completed its review of
RDA asset transfers pursuant to existing law; and, d) The
successor agency and the entity that created the former RDA
have complied with all of the office of the Controller's
findings and orders stemming from the reviews, as specified in
3) above.
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3)Author's Statement. According to the author, "Existing law,
created by SB 628 (Beall), Chapter 785, Statutes of 2014,
allows local agencies to create enhanced infrastructure
financing districts (EIFDs) to fund specified infrastructure
projects and facilities. SB 628, among other things: a)
Created a "public financing authority" to govern the EIFD; b)
Specified that housing paid for by the EIFD must be for low
and moderate income housing; and, c) Required that housing
that is replacing units torn down during the course of work
done by an EIFD must be done within two years after demolition
and if none of the units removed were for affordable housing
then replacement work must increase the number of replacement
units with at least 25% affordable.
"However, after further review of the language, it was found
that some clarification of the provisions related to
replacement housing and a few other related issues were
necessary. Also, ensuring that the EIFD public financing
authority has its own separate legal standing and spending
capacity requires more clarity as well.
"AB 313 provides the clarity needed in both of these issue
areas and ensures that when this tool is used by local
governments, the implementation requirements are clear.
Moreover, AB 313 will ensure that any residents that are
displaced by work done in an EIFD will receive adequate
support and that any units lost will be replaced by those of a
similar type of units and available to residents of the same
income levels as before."
4)Arguments in Support. Supporters argue that this bill will
ensure that, should any housing be affected by the activities
of an EIFD, relocation and replacement housing obligations
would apply to protect lower-income households from
displacement.
5)Arguments in Opposition. None on file.
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Analysis Prepared by:
Debbie Michel / L. GOV. / (916) 319-3958 FN:
0001585