SB 63, as amended, Hall. Seaport infrastructure financing districts.
Existing law authorizes the legislative body of a city or county to establish an enhanced infrastructure financing district, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, upon approval by 55% of the voters and to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, among other things, environmental mitigation, military base reuse, low-income housing, and specified housing and transit projects. Existing law 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.
This bill would additionally include port or harbor infrastructure, as defined, among the projects that may
be financed by an enhanced infrastructure financing district. The bill would require a harbor agency to prepare an infrastructure financing plan for a seaport infrastructure financing district, defined as an enhanced infrastructure financing district that finances port or harbor infrastructure. The bill would increase the vote threshold for a seaport infrastructure financing district to issue bonds to 2⁄3 of the voters, and would provide that for purposes of these voters, a “landowner”
begin delete means theend delete entity paying possessory interest tax on state-owned land. The bill would prescribe additional procedures and requirements for the establishment of a seaport begin delete enhancedend delete
infrastructure financing district, including approval by the harbor agency and the State Lands Commission before the proposal is submitted to the voters for approval. The bill would specify that the commission shall retain absolute discretion over the determination of whether or not investment of local resources in port or harbor infrastructure, the actions of a harbor agency, or any other action taken by a seaport infrastructure financing district is consistent with the state’s interest in tidelands and submerged lands.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) The Legislature finds and declares all of the
3(1) It is equitable and in the public interest to provide alternative
4procedures for financing public works and services needed to
5support new commercial, environmental, and industrial
6development in the state’s
begin delete portsend delete and harbors that would
7generate significant new employment opportunities and economic
8development, increase state and local tax revenues, enhance
begin delete portend delete
9 competitiveness in the international trade community,
10reduce congestion and delay in the supply chain, and result in
11improved environmental quality.
begin deletePorts end deleteand harbors in California generally do not
13levy or expend any funds generated by local taxes, as most of their
P3 1operations are funded directly through fees, tariffs, leases, and
2other revenue the
begin delete portsend delete and harbors generate from their
3users and tenants, in addition to the occasional state or federal
5(3) There is significant opportunity for development in our
begin delete portsend delete and harbors. However, the state lacks the
7public infrastructure funding and financing necessary to support
8all of the new development that is demanded.
9(4) Our state’s waterfront has infrastructure needs that cannot
10be met by private investment alone, and therefore public financing
11mechanisms are required to finance the remediating of deteriorating
12conditions. The absence of practical and equitable methods for
13financing both regional and local public works leads to a declining
begin delete portend delete infrastructure, a failure to construct new
15public works needed to support new commercial and industrial
16development in our
begin delete portsend delete and harbors, and increased
17congestion and environmental degradation.
begin delete portsend delete and harbors of California are valuable
19assets of the state that provide special maritime, navigational,
20recreational, cultural, and historical benefits to the people of the
21state and the management and development of these
begin delete portsend delete
22 and harbors are matters of statewide significance. Remediating
23any condition that will otherwise result in underinvestment in the
begin delete portsend delete and harbors by providing a financing
25mechanism, through the use of incremental property tax revenues,
26is a matter of statewide importance that will further the purposes
27of the public trust. Public facilities along the state’s waterfront that
28are eligible for financing pursuant to the enhanced infrastructure
29financing district law will increase public access to, or use or
30enjoyment of, public trust lands and are, therefore, facilities of
32(b) The Legislature
further finds and declares that in order to
33adapt the provisions of Chapter 2.99 (commencing with Section
3453398.50) of Part 1 of Division 2 of Title 5 of the Government
35Code, relating to enhanced infrastructure financing districts, to the
36unique circumstances that surround the state’s
begin delete portsend delete and
37harbors, this special act is necessary.
38(c) Due to the extraordinary capital needs of
begin delete portsend delete and
39harbors, it is the intent of the Legislature to provide local
40governments that may benefit from additional investment in the
begin delete portsend delete and harbors in their jurisdiction the authority to
2create and fund enhanced infrastructure financing districts in the
3manner that provides the optimal financing options to construct
4needed public facilities on public trust waterfront lands in order
5to meet the stated goals of statewide significance.
Section 53398.52 of the Government Code is amended
(a) (1) A district may finance any of the following:
9(A) The purchase, construction, expansion, improvement,
10seismic retrofit, or rehabilitation of any real or other tangible
11property with an estimated useful life of 15 years or longer that
12satisfies the requirements of subdivision (b).
13(B) The planning and design work that is directly related to the
14purchase, construction, expansion, or rehabilitation of property.
15(C) The costs described in Sections 53398.56 and 53398.57.
16(2) The facilities
are not required to be physically located within
17the boundaries of the district. However, any facilities financed
18outside of a district shall have a tangible connection to the work
19of the district, as detailed in the infrastructure financing plan
20adopted pursuant to Section 53398.69.
21(3) A district shall not finance routine maintenance, repair work,
22or the costs of an ongoing operation or providing services of any
24(b) The district shall finance only public capital facilities or
25other specified projects of communitywide significance that
26provide significant benefits to the district or the surrounding
27community, including, but not limited to, all of the following:
28(1) Highways, interchanges, ramps and bridges, arterial
29parking facilities, and transit facilities.
30(2) Sewage treatment and water reclamation plants and
32(3) Facilities for the collection and treatment of water for urban
34(4) Flood control levees and dams, retention basins, and drainage
36(5) Child care facilities.
38(7) Parks, recreational facilities, and open space.
39(8) Facilities for the transfer and disposal of solid waste,
40including transfer stations and vehicles.
P5 1(9) Brownfield restoration and other environmental mitigation.
2(10) The development of projects on a former military base,
3provided that the projects are consistent with the military base
4authority reuse plan and are approved by the military base reuse
5authority, if applicable.
6(11) The repayment of the transfer of funds to a military base
7reuse authority pursuant to Section 67851 that occurred on or after
8the creation of the district.
9(12) The acquisition, construction, or rehabilitation of housing
10for persons of low and moderate income, as defined in Section
1150093 of the Health and Safety Code, for rent or purchase.
12(13) Acquisition, construction, or repair of industrial structures
13for private use.
14(14) Transit priority projects, as defined in Section 21155 of
15the Public Resources Code, that are located within a transit priority
16project area. For purposes of this paragraph, a transit priority
17project area may include a military base reuse plan that meets the
18definition of a transit priority project area and it may include a
19contaminated site within a transit priority project area.
20(15) Projects that implement a sustainable communities strategy,
21when the State Air Resources Board, pursuant to Chapter 2.5
22(commencing with Section 65080) of Division 1 of Title 7, has
23accepted a metropolitan planning organization’s determination
24that the sustainable communities strategy or the alternative planning
25strategy would, if implemented, achieve the greenhouse gas
26emission reduction targets.
27(16) Port or harbor infrastructure, as defined by Section 1698
28of the Harbors and Navigation Code.
29(c) The district shall require, by recorded covenants or
30restrictions, that housing units built pursuant to this section shall
31remain available at affordable housing costs to, and occupied by,
32persons and families of low- or moderate-income households for
33the longest feasible time, but for not less than 55 years for rental
34units and 45 years for owner-occupied units.
35(d) The district may finance mixed-income housing
36developments, but may finance only those units in such a
37development that are restricted to occupancy by persons of low or
38moderate incomes as defined in Section 50093 of the Health and
39Safety Code, and those onsite facilities for child care, after-school
P6 1care, and social services that are integrally linked to the tenants of
2the restricted units.
3(e) A district may utilize any powers under the Polanco
4Redevelopment Act (Article 12.5 (commencing with Section
533459) of Chapter 4 of Part 1 of Division 24 of the Health and
6Safety Code), and finance any action necessary to implement that
Section 53398.62 of the Government Code is amended
(a) Except as provided in subdivision (b), after
11adopting the resolution pursuant to Section 53398.59, the legislative
12body shall designate and direct the city or county engineer or other
13appropriate official to prepare an infrastructure financing plan
14pursuant to Section 53398.63.
15(b) In the case of a district proposed for port or harbor
16infrastructure, the legislative body shall designate and direct the
begin delete agencyend delete to prepare an infrastructure
19 financing plan pursuant to Section 53398.63.
Section 53398.69 of the Government Code is amended
(a) At the conclusion of the hearing, the legislative
23body may adopt a resolution proposing adoption of the
24infrastructure financing plan, as modified, and formation of the
25enhanced infrastructure financing district in a manner consistent
26with Section 53398.68, or it may abandon the proceedings.
27(b) The infrastructure financing plan and the formation of the
28enhanced infrastructure financing district shall take effect upon
29the legislative body’s adoption of the resolution. The infrastructure
30financing plan shall specify if the district shall be funded solely
31through the district’s share of tax increment, governmental or
32private loans, grants, bonds, assessments, fees, or some
33combination thereof. However, the public financing authority shall
34not issue bonds or levy assessments or fees that may be included
35in the infrastructure financing plan before one or more of the
37(1) An affirmative vote, pursuant to subdivision (a) of Section
3853398.81 and, if applicable, subdivision (c) of Section 53398.80.5,
39to issue bonds to finance the infrastructure financing plan.
P7 1(2) Without compliance with the procedures required in
2subdivision (f) of Section 53398.75, to levy assessments or fees
3to finance the infrastructure financing plan.
4(c) In addition, the district may expend up to 10 percent of any
5accrued tax increment in the first two years of the effective date
6of the enhanced infrastructure financing district on planning and
7 dissemination of information to the residents within the district’s
8boundaries about the infrastructure financing plan and planned
9activities to be funded by the district.
Section 53398.80 of the Government Code is amended
(a) The public financing authority shall submit the
13proposal to issue the bonds to the voters who reside within the
14district. If the public financing authority adopts a resolution
15proposing initiation of proceedings to issue bonds pursuant to
16Section 53398.77, it shall then submit that proposal, together with
17the information specified in subdivisions (a) to (c), inclusive, of
18Section 53398.78, to the qualified electors of the district in the
19next general election or in a special election to be held,
20notwithstanding any other requirement, including any requirement
21that elections be held on specified dates, contained in the Elections
22Code, at least 90 days but not more than 180 days following the
23adoption of the resolution of bond issuance. The public financing
24authority shall provide the resolution of bond issuance, a certified
25map of sufficient scale and clarity to show the boundaries of the
26district, and a sufficient description to allow the election official
27to determine the boundaries of the district to the official conducting
28the election within three business days after the adoption of the
29resolution of bond issuance. The assessor’s parcel numbers for the
30land within the district shall be included if it is a landowner election
31or the district does not conform to an existing district’s boundaries
32and if requested by the official conducting the election. If the
33election is to be held less than 125 days following the adoption of
34the resolution of bond issuance, the concurrence of the election
35official conducting the election shall be required. However, any
36time limit specified by this section or requirement pertaining to
37the conduct of the election may be waived with the unanimous
38consent of the qualified electors of the proposed district and the
39concurrence of the election official conducting the election.
P8 1(b) (1) If at least 12 persons have been registered to vote within
2the territory of the district for each of the 90 days preceding the
3close of the hearing, the vote shall be by the registered voters of
4the district, who need not necessarily be the same persons, with
5each voter having one vote. Otherwise, the vote shall be by the
6landowners of the district and each landowner who is the owner
7of record at the close of the protest hearing, or the authorized
8representative thereof, shall have one vote for each acre or portion
9of an acre of land that he or she owns within the district. The
10number of votes to be voted by a particular landowner shall be
11specified on the ballot provided to that landowner.
12(2) For purposes of this subdivision, for an entity paying
13possessory interest tax on state-owned land, “landowner” means
14the entity that is paying the possessory interest tax.
15(c) Ballots for the special election authorized by subdivision (a)
16may be distributed to qualified electors by mail with return postage
17prepaid or by personal service by the election official. The official
18conducting the election may certify the proper mailing of ballots
19by an affidavit, which shall be exclusive proof of mailing in the
20absence of fraud. The voted ballots shall be returned to the election
21officer conducting the election not later than the hour specified in
22the resolution calling the election. However, if all the qualified
23voters have voted, the election shall be closed.
Section 53398.80.5 is added to the Government Code,
(a) If the public financing authority adopts a
27resolution proposing initiation of proceedings to issue bonds
28pursuant to Section 53398.77 for port or harbor infrastructure, it
29shall, before submitting the proposal to the voters pursuant to
30Section 53398.80, submit the proposal, together with the
31information specified in subdivisions (a) to (c), inclusive, and (e)
32and (f) of Section 53398.78, to the affected harbor agency pursuant
33to Section 1713 of the Harbors and Navigation Code for its
35(b) If the harbor agency grants preliminary approval, the
36proposal shall be considered by the State Lands Commission for
37final approval pursuant to Section 1714 of the Harbors and
39(c) If the State Lands Commission votes in favor of the issuance
40of the bonds as provided in Section 1714 of the Harbors and
P9 1Navigation Code, the public financing authority shall proceed with
2the submission of the proposal to the voters.
Section 53398.81 of the Government Code is amended
(a) (1) Except as specified in paragraph (2), the
6bonds may be issued if 55 percent of the voters voting on the
7proposition vote in favor of issuing the bonds.
8(2) For a seaport infrastructure financing district, the bonds may
9be issued if two-thirds of the voters voting on the proposition vote
10in favor of issuing the bonds.
11(b) If the voters approve the issuance of the bonds as provided
12by subdivision (a), the public financing authority shall proceed
13with the issuance of the bonds by adopting a resolution that shall
14provide for all of the following:
15(1) The issuance of the bonds in one or more series.
16(2) The principal amount of the bonds that shall be consistent
17with the amount specified in subdivision (b) of Section 53398.78.
18(3) The date the bonds will bear.
19(4) The date of maturity of the bonds.
20(5) The denomination of the bonds.
21(6) The form of the bonds.
22(7) The manner of execution of the bonds.
23(8) The medium of payment in which the bonds are payable.
24(9) The place or manner of payment and any requirements for
25registration of the bonds.
26(10) The terms of call or redemption, with or without premium.
Section 1690 of the Harbors and Navigation Code is
28amended to read:
The Legislature finds and declares all of the following:
30(a) The state has a compelling interest in the success of its ports
31and harbors because they provide significant economic benefit to
32the state in terms of jobs, personal income, business revenue, and
33taxes. It is the policy of the state that, because of that compelling
34interest, legislation in this area is a matter of statewide concern
35and is necessary to develop the harbors and ports of this state for
36the benefit of the people.
37(b) Ports and harbors are the vital interface between water and
38land transportation for trade with the Pacific Rim countries and
39other trade. In this respect, the specific management of the state’s
40ports and harbors by specific harbor and port districts established
P10 1pursuant to Division 8 (commencing with Section 5800) are of
2equal statewide concern and importance as the management of
3granted lands held in trust for the state by a local port or harbor
5(c) Historically, California’s ports and harbors have been
6self-supporting. Most port and harbor districts do not levy or
7expend funds generated by local taxes, as most of their operations
8are funded directly through fees and other revenue the ports
9generate from their users or tenants, in addition to occasional state
10and federal grants.
11(d) The report of the California Transportation Commission
12entitled “Improving Access to California’s Ports,” dated February
131990, found that eight hundred ninety-seven million dollars
14($897,000,000) is needed for port access transportation projects.
15By December 2014, the “California Freight Mobility Plan” report
16of the Department of Transportation identified a comprehensive
17list of freight projects in the state, including port access
18transportation projects, with an estimated total cost of one hundred
19thirty-eight billion dollars ($138,000,000,000).
20(e) In addition to port access transportation projects, there is a
21need for new harbor facilities and infrastructure investments that
22will enhance California’s competitiveness for international cargoes,
23grow employment, yield significant economic development,
24increase state and local tax revenues, and reduce impacts to
25environmental quality from goods movement.
26(f) Because of limited revenues from port operations, shrinking
27federal and state funding and the increasing demand for those
28limited funds, ports and harbors are no longer able to finance
29projects of this magnitude without new funding mechanisms. One
30such mechanism that can be used to finance port and harbor
31development projects is the enhanced infrastructure financing
33(g) It is the intent of the Legislature to assist in the reduction of
34local borrowing costs, help accelerate the construction, repair, and
35maintenance of port capital improvements, and promote greater
36use of existing and new financial instruments and mechanisms.
37(h) It is further the intent of the Legislature to assert the state’s
38plenary power over the financing of port and harbor infrastructure
39by harbor agencies as matters of statewide concern and to authorize
40the use of tax increment financing, as provided in Chapter 2.99
P11 1(commencing with Section 53398.50) of Part 1 of Division 2 of
2Title 5 of the Government Code, to support investment of tax
3revenues in port and harbor infrastructure.
4(i) The Legislature empowers local legislative bodies with
5specific and exclusive delegated authority to manage the state’s
6ports and harbors by legislative grant and by establishment of
7special districts pursuant to this code. In addition, the Legislature
8delegates to public financing authorities the power to establish
9seaport infrastructure financing districts for the purpose of
10leveraging investment in support of the statewide interest in
11improving port and harbor infrastructure.
Section 1698 of the Harbors and Navigation Code is
13amended to read:
(a) “Port or harbor infrastructure” means any of the
15following, if its primary or predominant use is of direct benefit to
16the port or harbor:
17(1) Streets, roads, highways, bridges, sidewalks, curbs, gutters,
18tunnels, subways, alleyways, viaducts, pipelines, rail lines, or other
19facilities for the transportation or movement of people, vehicles,
20equipment, or goods.
21(2) Piers, docks, wharves, slips, quays, platforms, decks, cranes,
22or other facilities for the mooring, docking, loading, or unloading
24(3) Lands, tidelands, submerged lands, easements, port
25routes, channel improvements, rights-of-way, dredge disposal sites,
26 safety zones, breakwaters, levees, bulkheads, or walls of rock or
27other material to protect property or traffic.
28(4) Parking, warehouse, or storage facilities.
29(5) Parks, recreation, or open space facilities.
30(6) Remediation or any capital improvement that improves
32(7) Water, wastewater, drainage, electric, or telecommunication
33systems or facilities.
34(8) Buildings, structures, facilities, improvements, or equipment
35necessary or convenient to any of paragraphs (1) to (7), inclusive,
36or to the operation of a port or harbor.
37(9) Public improvements authorized pursuant to the
38Improvement Act of 1911 (Division 7 (commencing with Section
395000) of the Streets and Highways Code), the Improvement Bond
40Act of 1915 (Division 10 (commencing with Section 8500) of the
P12 1Streets and Highways Code), and the Mello-Roos Community
2Facilities Act of 1982 (Chapter 2.5 (commencing with Section
353311) of Part 1 of Division 2 of Title 5 of the Government Code).
4(b) Any port or harbor infrastructure may be privately operated.
5Except for any port or harbor infrastructure financed or subsidized
6with public trust revenues, any privately owned port or harbor
7infrastructure may be eligible in whole or in part for financing or
8other support or subsidy from money deposited in the infrastructure
9fund pursuant to subdivision (a) of Section 1701.
10(c) If a port or harbor infrastructure financed wholly or partly
11with public funds is privately owned and if the use for which the
12port or harbor infrastructure was originally constructed changes
13or is incompatible with the port authority’s master plan, the private
14owner shall pay the public agency the percentage of the full
15appreciated value of the port or harbor infrastructure that was
16originally financed with public funds.
17(d) Any port or harbor infrastructure may be located within,
18partly within and partly outside, or outside the boundaries of any
20(e) Any port or harbor infrastructure that has been purchased,
21constructed, expanded, improved, or rehabilitated by the
22expenditure or use of public trust revenues shall be held as an asset
23of the trust in a share proportionate to the investment of public
24 trust revenues.
Section 1699 is added to the Harbors and Navigation
26Code, to read:
“Seaport infrastructure financing district” means an
28enhanced infrastructure financing district that finances port or
29harbor infrastructure created in accordance with Chapter 3
30(commencing with Section 1710) of this part and Chapter 2.99
31(commencing with Section 53398.50) of Part 1 of Division 2 of
32Title 5 of the Government Code.
Chapter 3 (commencing with Section 1710) is added
34to Part 1 of Division 6 of the Harbors and Navigation Code, to
The Legislature finds and declares all of the following:
P13 1(a) In addition to the findings and declarations in Section
253398.50 of the Government Code, the ability to capture property
3tax increment revenues to finance needed
begin delete portend delete and harbor
4infrastructure projects will provide direct benefits to the state.
5When harbor agencies are better funded to further the objectives
6of the state, its
begin delete portsend delete and harbors, and the public trust and
7enjoyment of those trust lands by the people of the state, local
8economies and the local environment will also be improved.
begin delete portend delete or harbor or its operation frequently generates
10large local tax benefits directly as a result of the possessory interest
11taxes paid on the value of leased port and harbor real property.
12(c) The tax increment increases in possessory interest taxes that
13will result from the improvement of
begin delete portend delete and harbor
14infrastructure should be captured, whenever possible, and
15reinvested to support the state’s significant interest in the successful
16operation of its
begin delete portsend delete and harbors.
17(d) The unique nature of the state’s public seaports and harbors,
18including the nature of the statewide interest in their operations,
19requires special rules if these ports and harbors are to be allowed
20to participate in a seaport infrastructure financing district.
21(e) The seaport infrastructure financing district is specifically
22developed to include publicly owned property, to improve that
23public property, and to achieve the public goals of improving the
24state’s waterborne commerce, enhancing economic prosperity, and
25financing the costs of environmental mitigation and improvement.
26(f) This chapter is intended to maintain and enforce the state’s
27retained rights, statewide interests, obligations and sovereign duties
begin delete ports,end delete harbors, and tidelands, including protecting
29these same assets from local control or excise, while simultaneously
30creating an opportunity for public financing authorities to
31participate in facilitating investment in the state’s public seaport
32infrastructure and finance projects that will have the anticipated
33effect of not only providing statewide benefits, but also local
34benefits such as boosting local employment, local secondary
35economic development, local environmental improvement, and
36increased local tax revenues.
As used in this chapter, “public financing authority” has
38the same meaning as provided in Section 53398.51 of the
When designated by the legislative body pursuant to
2Section 53398.62 of the Government Code, the harbor agency
3shall prepare a proposed infrastructure financing plan, as provided
4in Section 53398.63 of the Government Code, for a seaport
5infrastructure financing district covering a port or harbor
(a) Upon receipt of a resolution from the public financing
8authority promulgated under subdivision (a) of Section 53398.80.5
9of the Government Code, the harbor agency shall have 60 days to
10consider the proposal. During this time, the harbor agency’s
11governing body shall act at a duly noticed meeting to either vote
12to give preliminary approval of the proposal, subject to the
13provisions of this section, or disapprove the proposal and return
14it to the public financing authority.
15(b) A harbor agency may give preliminary approval under this
16section only if it makes all of the following affirmative findings:
17(1) The harbor agency has prepared an infrastructure financing
18plan pursuant to Section 1712.
19(2) The improvements to the harbor agency’s property to be
20financed through the proceeds of a seaport infrastructure financing
21district are solely for the support of port or harbor infrastructure.
22(3) All publicly owned property that is leased to private parties
23within the boundaries of the seaport infrastructure financing district
24has been reported by the harbor agency to the local county assessor
25to facilitate possessory interest taxation.
26(4) (A) If the harbor agency is acting on granted lands, all of
27the projects and uses proposed in the seaport infrastructure
28financing district are consistent with the state tidelands trust and
29the conditions of the harbor agency grant.
30(B) If the harbor agency was formed pursuant to this code, all
31of the projects and uses proposed in the seaport infrastructure
32financing district are consistent with its charter and the statewide
33interests in the operation of harbors and ports.
34(c) (1) The harbor agency shall not grant preliminary approval
35under this section unless both of the following apply:
36(A) The seaport infrastructure financing district will operate
37independently of any other prior or concurrent agreements between
38the harbor agency and the public financing authority, or the local
39governments that make up the public financing authority.
P15 1(B) No transfers of funds or obligations, or future transfers of
2funds or obligations contingent on the approval of the seaport
3infrastructure financing district, its financing, or projects within
4the district, are created between the harbor agency and the public
5financing authority, or the local governments that make up the
6public financing authority.
7(2) For purposes of this subdivision, “transfers of funds or
8obligations” includes any direct or indirect transfer of harbor
9agency resources to the public financing authority, or the local
10governments that make up the public financing authority, except
11for any of the following if agreed to between the harbor agency
12and the public financing authority in writing:
13(A) Harbor agency reimbursements of a public financing
14authority for its direct administrative costs of establishing the
15seaport infrastructure financing district.
16(B) Public financing authority expenses for underwriting the
17bond issuance for the identified projects in the seaport
18infrastructure financing district.
19(C) Any other administrative expenses or direct operating
20expenses that are incurred as the direct result of creating the seaport
21infrastructure financing district that are identified by both parties
22at the time of preliminary approval and in advance of the expense
23being incurred by the public financing authority.
24(d) If a harbor agency votes to give preliminary approval to the
25proposal, it shall immediately forward its preliminary approval to
26the State Lands Commission for its consideration.
(a) Upon receipt of a preliminary approval from a harbor
28agency granted pursuant to Section 1713, the State Lands
29Commission shall consider the proposal and either grant or deny
31(b) Prior to granting final approval the State Lands Commission
32shall do both of the following:
33(1) Review the infrastructure financing plan prepared by the
34harbor agency pursuant to Section 1712.
35(2) Review the findings of the harbor agency made in its
37(c) The State
Lands Commission shall grant final approval only
38if it makes all of the following findings:
P16 1(1) The state’s interests in its tidelands and its ports and harbors
2are furthered by the funding of the seaport infrastructure financing
4(2) The principal purposes of the seaport infrastructure financing
5district are to further port and harbor infrastructure.
6(3) The execution of the financing section of the infrastructure
7finance plan is more likely than not to result in the outcomes
9(4) No revenues shall be made available to local governments
10as a result of the approval of the seaport infrastructure financing
11district from state revenues, revenues derived from granted lands,
12or from ports or harbors created under this code, except as
13otherwise allowed under paragraph (2) of subdivision (c) of Section
15(5) The harbor agency and the public financing authority
16participating in the seaport infrastructure financing district have
17each completed all procedural requirements, financial due
18diligence, and made all findings required by this chapter and
19Chapter 2.99 (commencing with Section 53398.50) of Part 1 of
20Division 2 of Title 5 of the Government Code.
21(6) All of the projects and uses proposed in the seaport
22infrastructure financing district are consistent with the state
23tidelands trust and the conditions of any grants, if applicable, and
24the statewide interests in the operation of harbors and ports.
25(7) No agreements by the harbor agency that may control the
26discretion of the harbor agency to maintain its port or harbor
27operations or to cede any such control to the discretion of a third
28party were made as a condition of participation in the seaport
29infrastructure financing district.
30(d) If the State Lands Commission gives final approval to the
31proposal, it shall immediately forward its approval to the public
32financing authority for further action pursuant to subdivision (c)
33of Section 53398.80.5 of the Government Code.
(a) Except as provided in subdivision (b), Chapter 2.99
2(commencing with Section 53398.50) of Part 1 of Division 2 of
3Title 5 of the Government Code shall apply to this chapter.
4(b) To the extent that any provision of this chapter conflicts
5with any provision of Chapter 2.99 (commencing with Section
653398.50) of Part 1 of Division 2 of Title 5 of the Government
7Code with respect to a seaport infrastructure financing district, this
8chapter shall prevail.
All permanent fixtures and capital improvements to the
10real property of a harbor agency that administers public trust
11tidelands made pursuant to a seaport infrastructure district’s
12approved infrastructure financing plan shall be a trust asset once
13completed. This provision does not apply to fixtures and
14improvements otherwise agreed as nonpermanent in a lease
15between the harbor agency and a private tenant.
If a harbor agency administering granted public trust
17property is a department of a local governmental body, any
18negotiations between the two entities with respect to any
19infrastructure financing, operations, or any other activity requiring
20action by the harbor agency shall be undertaken at arm’s length
21in recognition of the duties of the harbor agency to effectuate
(a) Pursuant to Section 6009 of the Public Resources
24Code, the State Lands Commission shall retain absolute discretion
25over the determination of whether or not investment of local
26resources in port or harbor infrastructure, the actions of a harbor
27agency, or any other action taken by a seaport infrastructure
28financing district is consistent with the state’s interests in its
29tidelands and submerged lands. Nothing in this chapter, including
30a finding made pursuant to Section 1714, or Chapter 2.99
31(commencing with Section 53398.50) of Part 1 of Division 2 of
32Title 5 of the Government Code, shall preclude the State Lands
33Commission from enforcing the state’s interests in its tidelands.
34(b) Pursuant to Section 6009.1 of the Public Resources Code,
35 a harbor agency that manages granted state tidelands retains its
36status as a trustee whether or not it is located within a seaport
37infrastructure financing district. Nothing in this chapter, including
38a finding made pursuant to Section 1714, or Chapter 2.99
39(commencing with Section 53398.50) of Part 1 of Division 2 of
P18 1Title 5 of the Government Code, shall preclude the harbor agency
2from conducting its duties as a trustee of state tidelands.
3(c) Nothing in this chapter or in Chapter 2.99 (commencing
4with Section 53398.50) of Part 1 of Division 2 of Title 5 of the
5Government Code grants any authority to any public financing
6authority, or the local governments that compose the public finance
7authority, in any manner whatsoever to manage, direct, control,
8or exercise jurisdiction over a harbor agency and its management
9of port or harbor infrastructure.