AB 2618, as amended, Nazarian. Community facilities districts: powers.
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 a community facilities district formed pursuant to an alternative procedure 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, to finance and refinance the acquisition, installation, and improvement of energy efficiency, water conservation, and renewable energy improvements.
This bill would authorize a community facilities district that is formed pursuant to the alternative procedure to additionally finance seismic retrofitting, as specified.
begin insertThis bill would incorporate changes to Section 53328.1 of the Government Code proposed by both this bill and AB 2693, which would become operative only if both bills are enacted and become effective on or before January 1, 2017, and this bill is chaptered last.
end insertVote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 53328.1 of the Government Code is
2amended to read:
(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
6of territory proposed for annexation to the community facilities
7district in the future, with the condition that a parcel or parcels
8within that territory may be annexed to the community facilities
9district and subjected to the special tax only with the unanimous
10approval of the owner or owners of the parcel or parcels at the
11time that the parcel or parcels are annexed. In that case, the
12legislative body shall follow the procedures set forth in this article
13for the formation of a community facilities district, with the
14following exceptions:
15(1) The legislative body shall not be obligated to specify the
16rate or rates of special tax in the resolution of intention or the
17resolution of formation, provided that both of the following are
18met:
19(A) The resolution of intention and the resolution of formation
20include a statement that the rate shall be established in an amount
21required to finance or refinance the authorized improvements and
22to pay the district’s administrative expenses.
23(B) The maximum rate of special tax applicable to a parcel or
24parcels shall be specified in the unanimous approval described in
25this section relating to the parcel or parcels.
26(2) The legislative body shall not be obligated to
specify in the
27resolution of intention the conditions under which the obligation
28to pay the specified special tax may be prepaid and permanently
29satisfied. Instead, a prepayment provision may be included in the
30unanimous approval of the owner or owners of each parcel or
P3 1parcels at the time that the parcel or parcels are annexed to the
2community facilities district.
3(3) In lieu of approval pursuant to an election held in accordance
4with the procedures set forth in Sections 53326, 53327, 53327.5,
5and 53328, the appropriations limit for the community facilities
6district, the applicable rate of the special tax and the method of
7apportionment and manner of collection of that tax, and the
8authorization to incur bonded indebtedness for the community
9facilities district shall be specified and be approved by the
10unanimous approval of the
owner or owners of each parcel or
11parcels at the time that the parcel or parcels are annexed to the
12community facilities district. No additional hearings or procedures
13are required, and the unanimous approval shall be deemed to
14constitute a unanimous vote in favor of the appropriations limit
15for the community facilities district, the authorization to levy the
16special tax on the parcel or parcels, and the authorization to incur
17bonded indebtedness for the community facilities district.
18(4) Notwithstanding Section 53324, this paragraph establishes
19the applicable protest provisions in the event a local agency forms
20a community facilities district pursuant to the procedures set forth
21in this section. If 50 percent or more of the registered voters, or
22six registered voters, whichever is more, residing within the
23territory proposed to be annexed to the
community facilities district
24in the future, or if the owners of one-half or more of the area of
25land proposed to be annexed in the future and not exempt from
26the special tax, file written protests against establishment of the
27community facilities district, and protests are not withdrawn so as
28to reduce the protests to less than a majority, no further proceedings
29to form the community facilities district shall be undertaken for a
30period of one year from the date of decision of the legislative body
31on the issues discussed at the hearing. If the majority protests of
32the registered voters or of the landowners are only against the
33furnishing of a specified type or types of facilities or services
34within the district, or against levying a specified special tax, those
35types of facilities or services or the specified special tax shall be
36eliminated from the resolution of formation.
37(5) The legislative body shall not record a notice of special tax
38lien against any parcel or parcels in the community facilities district
39until the owner or owners of the parcel or parcels have given their
40unanimous approval of the parcel’s or parcels’ annexation to the
P4 1community facilities district, at which time the notice of special
2tax lien shall be recorded against the parcel or parcels as set forth
3in Section 53328.3.
4(b) Notwithstanding the provisions of Section 53340, after
5adoption of the resolution of formation for a community facilities
6district described in subdivision (a), the legislative body may, by
7ordinance, provide for the levy of the special taxes on parcels that
8will annex to the community facilities district at the rate or rates
9to be approved unanimously
by the owner or owners of each parcel
10or parcels to be annexed to the community facilities district and
11for apportionment and collection of the special taxes in the manner
12specified in the resolution of formation. No further ordinance shall
13be required even though no parcels may then have annexed to the
14community facilities district.
15(c) The local agency may bring an action to determine the
16validity of any special taxes levied pursuant to this chapter and
17authorized pursuant to the procedures set forth in this section
18pursuant to Chapter 9 (commencing with Section 860) of Title 10
19of Part 2 of the Code of Civil Procedure. Notwithstanding Section
2053359, if an action is brought by an interested person pursuant to
21Section 863 of the Code of Civil Procedure to determine the
22validity of any special taxes levied against a parcel pursuant to
23this
chapter and authorized pursuant to the procedures set forth in
24this section, the action shall be brought pursuant to Chapter 9
25(commencing with Section 860) of Title 10 of Part 2 of the Code
26of Civil Procedure, but shall, notwithstanding the time limits
27specified in Section 860 of the Code of Civil Procedure, be
28commenced within 15 days after the date on which the notice of
29special tax lien is recorded against the parcel. Any appeal from a
30judgment in any action or proceeding described in this subdivision
31shall be commenced within 30 days after entry of judgment.
32(d) A community facilities district formed pursuant to this
33section may only finance facilities pursuant tobegin delete subdivisionsend delete
34begin insert subdivisionend insert
(i) or (l) of Section 53313.5.
35(e) In connection with formation of a community facilities
36district and annexation of a parcel or parcels to the community
37facilities district pursuant to this section, and the conduct of an
38election on the proposition to authorize bonded indebtedness
39pursuant to the alternate procedures set forth in Section 53355.5,
40the local agency may, without additional hearings or procedures,
P5 1designate a parcel or parcels as an improvement area within the
2community facilities district. After the designation of a parcel or
3parcels as an improvement area, all proceedings for approval of
4the appropriations limit, the rate and method of apportionment and
5manner of collection of special tax and the authorization to incur
6bonded indebtedness for the parcel or parcels shall apply only to
7the improvement
area.
8(f) In connection with a community facilities district formed
9under this section, as an alternate and independent procedure for
10making the changes described in Section 53330.7, the changes
11may be made with the unanimous approval of the owner or owners
12of the parcel or parcels that will be affected by the change and
13with the written consent of the local agency. No additional hearings
14or procedures are required, and the unanimous approval shall be
15deemed to constitute a unanimous vote in favor of the proposed
16changes. If the proceeds of a special tax are being used to retire
17any debt incurred pursuant to this chapter and the unanimous
18approval relates to the reduction of the special tax rate, the
19unanimous approval shall recite that the reduction or termination
20of the special tax will not interfere with the timely retirement of
21that
debt.
begin insertSection 53328.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert
(a) As an alternate and independent procedure for
25forming a community facilities district, the legislative body may
26form a community facilities district that initially consists solely
27of territory proposed for annexation to the community facilities
28district in the future, with the condition that a parcel or parcels
29within that territory may be annexed to the community facilities
30district and subjected to the special tax only with the unanimous
31approval of the owner or owners of the parcel or parcels at the
32time that the parcel or parcels are annexed. In that case, the
33legislative body shall follow the procedures set forth in this article
34for the formation of a community facilities district, with the
35following exceptions:
36(1) The legislative body shall not be
obligated to specify the
37rate or rates of special tax in the resolution of intention or the
38resolution of formation, provided that both of the following are
39met:
P6 1(A) The resolution of intention and the resolution of formation
2include a statement that the rate shall be established in an amount
3required to finance or refinance the authorized improvements and
4to pay the district’s administrative expenses.
5(B) The maximum rate of special tax applicable to a parcel or
6parcels shall be specified in the unanimous approval described in
7this section relating to the parcel or parcels.
8(2) The legislative body shall not be obligated to specify in the
9resolution of intention the conditions under which the obligation
10to pay the specified special tax may be prepaid and permanently
11satisfied. Instead, a prepayment provision may be
included in the
12unanimous approval of the owner or owners of each parcel or
13parcels at the time that the parcel or parcels are annexed to the
14community facilities district.
15(3) In lieu of approval pursuant to an election held in accordance
16with the procedures set forth in Sections 53326, 53327, 53327.5,
17and 53328, the appropriations limit for the community facilities
18district, the applicable rate of the special tax and the method of
19apportionment and manner of collection of that tax, and the
20authorization to incur bonded indebtedness for the community
21facilities district shall be specified and be approved by the
22unanimous approval of the owner or owners of each parcel or
23parcels at the time that the parcel or parcels are annexed to the
24community facilities district. No additional hearings or procedures
25are required, and the unanimous approval shall be deemed to
26constitute a unanimous vote in favor of the appropriations limit
27for the community
facilities district, the authorization to levy the
28special tax on the parcel or parcels, and the authorization to incur
29bonded indebtedness for the community facilities district.
30(4) Notwithstanding Section 53324, this paragraph establishes
31the applicable protest provisions in the event a local agency forms
32a community facilities district pursuant to the procedures set forth
33in this section. If 50 percent or more of the registered voters, or
34six registered voters, whichever is more, residing within the
35territory proposed to be annexed to the community facilities district
36in the future, or if the owners of one-half or more of the area of
37land proposed to be annexed in the future and not exempt from
38the special tax, file written protests against establishment of the
39community facilities district, and protests are not withdrawn so as
40to reduce the protests to less than a majority, no further proceedings
P7 1to form the community facilities district
shall be undertaken for a
2period of one year from the date of decision of the legislative body
3on the issues discussed at the hearing. If the majority protests of
4the registered voters or of the landowners are only against the
5furnishing of a specified type or types of facilities or services
6within the district, or against levying a specified special tax, those
7types of facilities or services or the specified special tax shall be
8eliminated from the resolution of formation.
9(5) The legislative body shall not record a notice of special tax
10lien against any parcel or parcels in the community facilities district
11until the owner or owners of the parcel or parcels have given their
12unanimous approval of the parcel’s or parcels’ annexation to the
13community facilities district, at which time the notice of special
14tax lien shall be recorded against the parcel or parcels as set forth
15in Section 53328.3.
16(b) Notwithstanding the provisions of Section 53340, after
17adoption of the resolution of formation for a community facilities
18district described in subdivision (a), the legislative body may, by
19ordinance, provide for the levy of the special taxes on parcels that
20will annex to the community facilities district at the rate or rates
21to be approved unanimously by the owner or owners of each parcel
22or parcels to be annexed to the community facilities district and
23for apportionment and collection of the special taxes in the manner
24specified in the resolution of formation. No further ordinance shall
25be required even though no parcels may then have annexed to the
26community facilities district.
27(c) The local agency may bring an action to determine the
28validity of any special taxes levied pursuant to this chapter and
29authorized pursuant to the procedures set forth in this section
30pursuant to Chapter 9 (commencing with Section 860) of Title
10
31of Part 2 of the Code of Civil Procedure. Notwithstanding Section
3253359, if an action is brought by an interested person pursuant to
33Section 863 of the Code of Civil Procedure to determine the
34validity of any special taxes levied against a parcel pursuant to
35this chapter and authorized pursuant to the procedures set forth in
36this section, the action shall be brought pursuant to Chapter 9
37(commencing with Section 860) of Title 10 of Part 2 of the Code
38of Civil Procedure, but shall, notwithstanding the time limits
39specified in Section 860 of the Code of Civil Procedure, be
40commenced within 15 days after the date on which the notice of
P8 1special tax lien is recorded against the parcel. Any appeal from a
2judgment in any action or proceeding described in this subdivision
3shall be commenced within 30 days after entry of judgment.
4(d) A community facilities district formed pursuant to this
5section may only finance facilities pursuant to subdivisionbegin insert
(i) orend insert
6 (l) of Section 53313.5.
7
(e) (1) The legislative body shall comply with the requirements
8specified in Sections 5898.16 and 5898.17 of the Streets and
9Highways Code prior to the annexation of a parcel or parcels to
10a community facilities district formed pursuant to this section.
11
(2) A parcel or parcels shall not be annexed to a community
12facilities district formed pursuant to this section unless the parcel
13complies with the conditions specified in subdivision (a) of Section
1426063 of the Public Resources Code and in subdivision (b) of
15Section 10081 of Title 4 of the California Code of Regulations.
16(e)
end delete
17begin insert(f)end insert In connection with formation of a community facilities
18district and annexation of a parcel or parcels to the community
19facilities district pursuant to this section, and the conduct of an
20election on the proposition to authorize bonded indebtedness
21pursuant to the alternate procedures set forth in Section 53355.5,
22the local agency may, without additional hearings or procedures,
23designate a parcel or parcels as an improvement area within the
24community facilities district. After the designation of a parcel or
25parcels as an improvement area, all proceedings for approval of
26the appropriations limit, the rate and method of apportionment and
27manner of collection of special tax and the authorization to incur
28bonded indebtedness for the parcel or parcels shall apply only to
29the improvement area.
30(f)
end delete
31begin insert(g)end insert In connection with a community facilities district formed
32under this section, as an alternate and independent procedure for
33making the changes described in Section 53330.7, the changes
34may be made with the unanimous approval of the owner or owners
35of the parcel or parcels that will be affected by the change and
36with the written consent of the local agency. No additional hearings
37or procedures are required, and the unanimous approval shall be
38deemed to constitute a unanimous vote in favor of the proposed
39changes. If the proceeds of a special tax are being used to retire
40any debt incurred pursuant to this chapter and the unanimous
P9 1approval relates to the reduction of the special tax rate, the
2unanimous approval shall recite that the reduction or termination
3of the special tax will not interfere with the timely retirement of
4that
debt.
Section 1.5 of this bill incorporates amendments to
6Section 53328.1 of the Government Code proposed by both this
7bill and Assembly Bill 2693. It shall only become operative if (1)
8both bills are enacted and become effective on or before January
91, 2017, (2) each bill amends Section 53328.1 of the Government
10Code, and (3) this bill is enacted after Assembly Bill 2693, in which
11case Section 1 of this bill shall not become operative.
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96