California Legislature—2015–16 Regular Session

Assembly BillNo. 2618


Introduced by Assembly Member Nazarian

February 19, 2016


An act to amend Section 53328.1 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL’S DIGEST

AB 2618, as introduced, Nazarian. community facilities districts.

The Mello-Roos Community Facilities Act of 1982 specifies the requirements for the establishment of a community facilities district, including, among other things, a petition, a hearing, the establishment of the boundaries of the community facilities district, and an election on the question. Existing law authorizes an alternative procedure for establishing a community facilities district under which the district initially consists solely of territory proposed for annexation to the community facilities district in the future, and territory is annexed and subjected to special taxes only upon unanimous approval of the owners.

This bill would make nonsubstantive changes to those provisions.

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

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

P1    1

SECTION 1.  

Section 53328.1 of the Government Code is
2amended to read:

3

53328.1.  

(a) As an alternate and independent procedure for
4forming a community facilities district, the legislative body may
5form a community facilities district that initially consists solely
P2    1of territory proposed for annexation to the community facilities
2district in the future, with the condition that a parcel or parcels
3within that territory may be annexed to the community facilities
4district and subjected to the special tax only with the unanimous
5approval of the owner or owners of the parcel or parcels at the
6time that the parcel or parcels are annexed. In that case, the
7legislative body shall follow the procedures set forth in this article
8for the formation of a community facilities district, with the
9following exceptions:

10(1) The legislative bodybegin delete shall not be obligatedend deletebegin insert is not requiredend insert
11 to specify the rate or rates of special tax in the resolution of
12intention or the resolution of formation, provided that both of the
13following are met:

14(A) The resolution of intention and the resolution of formation
15include a statement that the rate shall be established in an amount
16required to finance or refinance the authorized improvements and
17to pay the district’s administrative expenses.

18(B) The maximum rate of special tax applicable to a parcel or
19parcels shall be specified in the unanimous approval described in
20this section relating to the parcel or parcels.

21(2) The legislative bodybegin delete shall not be obligatedend deletebegin insert is not requiredend insert
22 to specify in the resolution of intention the conditions under which
23the obligation to pay the specified special tax may be prepaid and
24permanently satisfied. Instead, a prepayment provision may be
25included in the unanimous approval of the owner or owners of
26each parcel or parcels at the time that the parcel or parcels are
27annexed to the community facilities district.

28(3) In lieu of approval pursuant to an election held in accordance
29with the procedures set forth in Sections 53326, 53327, 53327.5,
30and 53328, the appropriations limit for the community facilities
31district, the applicable rate of the special tax and the method of
32apportionment and manner of collection of that tax, and the
33authorization to incur bonded indebtedness for the community
34facilities district shall be specified and be approved by the
35unanimous approval of the owner or owners of each parcel or
36parcels at the time that the parcel or parcels are annexed to the
37community facilities district. No additional hearings or procedures
38are required, and the unanimous approval shall be deemed to
39constitute a unanimous vote in favor of the appropriations limit
40for the community facilities district, the authorization to levy the
P3    1special tax on the parcel or parcels, and the authorization to incur
2bonded indebtedness for the community facilities district.

3(4) Notwithstanding Section 53324, this paragraph establishes
4the applicable protest provisions in the event a local agency forms
5a community facilities district pursuant to the procedures set forth
6in this section. If 50 percent or more of the registered voters, or
7six registered voters, whichever is more, residing within the
8territory proposed to be annexed to the community facilities district
9in the future, or if the owners of one-half or more of the area of
10land proposed to be annexed in the future and not exempt from
11the special tax, file written protests against establishment of the
12community facilities district, and protests are not withdrawn so as
13to reduce the protests to less than a majority, no further proceedings
14to form the community facilities district shall be undertaken for a
15period of one year from the date of decision of the legislative body
16on the issues discussed at the hearing. If the majority protests of
17the registered voters or of the landowners are only against the
18furnishing of a specified type or types of facilities or services
19within the district, or against levying a specified special tax, those
20types of facilities or services or the specified special tax shall be
21eliminated from the resolution of formation.

22(5) The legislative body shall not record a notice of special tax
23lien against any parcel or parcels in the community facilities district
24until the owner or owners of the parcel or parcels have given their
25unanimous approval of the parcel’s or parcels’ annexation to the
26community facilities district, at which time the notice of special
27tax lien shall be recorded against the parcel or parcels as set forth
28in Section 53328.3.

29(b) Notwithstanding the provisions of Section 53340, after
30adoption of the resolution of formation for a community facilities
31district described in subdivision (a), the legislative body may, by
32ordinance, provide for the levy of the special taxes on parcels that
33will annex to the community facilities district at the rate or rates
34to be approved unanimously by the owner or owners of each parcel
35or parcels to be annexed to the community facilities district and
36for apportionment and collection of the special taxes in the manner
37specified in the resolution of formation. No further ordinance shall
38be required even though no parcels may then have annexed to the
39community facilities district.

P4    1(c) The local agency may bring an action to determine the
2validity of any special taxes levied pursuant to this chapter and
3authorized pursuant to the procedures set forth in this section
4pursuant to Chapter 9 (commencing with Section 860) of Title 10
5of Part 2 of the Code of Civil Procedure. Notwithstanding Section
653359, if an action is brought by an interested person pursuant to
7Section 863 of the Code of Civil Procedure to determine the
8validity of any special taxes levied against a parcel pursuant to
9this chapter and authorized pursuant to the procedures set forth in
10this section, the action shall be brought pursuant to Chapter 9
11(commencing with Section 860) of Title 10 of Part 2 of the Code
12of Civil Procedure, but shall, notwithstanding the time limits
13specified in Section 860 of the Code of Civil Procedure, be
14commenced within 15 days after the date on which the notice of
15special tax lien is recorded against the parcel. Any appeal from a
16judgment in any action or proceeding described in this subdivision
17 shall be commenced within 30 days after entry of judgment.

18(d) A community facilities district formed pursuant to this
19section may only finance facilities pursuant to subdivision (l) of
20Section 53313.5.

21(e) In connection with formation of a community facilities
22district and annexation of a parcel or parcels to the community
23facilities district pursuant to this section, and the conduct of an
24election on the proposition to authorize bonded indebtedness
25pursuant to the alternate procedures set forth in Section 53355.5,
26the local agency may, without additional hearings or procedures,
27designate a parcel or parcels as an improvement area within the
28community facilities district. After the designation of a parcel or
29parcels as an improvement area, all proceedings for approval of
30the appropriations limit, the rate and method of apportionment and
31manner of collection of special tax and the authorization to incur
32bonded indebtedness for the parcel or parcels shall apply only to
33the improvement area.

34(f) In connection with a community facilities district formed
35under this section, as an alternate and independent procedure for
36making the changes described in Section 53330.7, the changes
37may be made with the unanimous approval of the owner or owners
38of the parcel or parcels that will be affected by the change and
39with the written consent of the local agency. No additional hearings
40or procedures are required, and the unanimous approval shall be
P5    1deemed to constitute a unanimous vote in favor of the proposed
2changes. If the proceeds of a special tax are being used to retire
3any debt incurred pursuant to this chapter and the unanimous
4approval relates to the reduction of the special tax rate, the
5unanimous approval shall recite that the reduction or termination
6of the special tax will not interfere with the timely retirement of
7that debt.



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