BILL NUMBER: SB 1708	CHAPTERED  08/28/00

	CHAPTER   253
	FILED WITH SECRETARY OF STATE   AUGUST 28, 2000
	APPROVED BY GOVERNOR   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	PASSED THE SENATE   APRIL 13, 2000
	AMENDED IN SENATE   MARCH 29, 2000

INTRODUCED BY   Senator Kelley

                        FEBRUARY 22, 2000

   An act to add Chapter 6.1 (commencing with Section 10550) to
Division 12 of the Streets and Highways Code, relating to streets.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1708, Kelley.  Streets:  water or sewer system improvements:
loans:  repayment:  assessment districts.
   The Municipal Improvement Act of 1913 authorizes a municipality to
establish an assessment district, issue bonds to finance
construction of certain municipal improvements in or along streets
within the district, and levy assessments to repay the principal and
interest on those bonds.
   This bill would authorize a municipality that has entered into a
contract with the state that includes a loan funded by the state for
the purpose of financing the construction and installation of certain
water or sewer system improvements in or along its streets to
conduct proceedings under the act for the formation of an assessment
district for the purpose of levying an assessment to secure repayment
of the loan.
   The bill would require the proceeding for the formation of the
assessment district and the levy of the assessment to be conducted in
accordance with the act, with appropriate modifications to all
resolutions and notices, except as otherwise provided by the bill.
   The bill would require the legislative body of the municipality to
provide in certain required resolutions that the assessment will be
collected in annual installments.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 6.1 (commencing with Section 10550) is added to
Division 12 of the Streets and Highways Code, to read:

      CHAPTER 6.1.  LOAN REPAYMENT ASSESSMENT DISTRICTS

   10550.  (a) If a municipality has entered into a contract with the
state that includes a loan funded by the state for the purpose of
financing the construction and installation of water or sewer system
improvements in or along its streets that are of special benefit to
land within the municipality, the municipality may conduct
proceedings under this division for the formation of an assessment
district for the purpose of levying an assessment to secure repayment
of the loan.
   (b) Except as otherwise provided in this chapter, the proceeding
for the formation of the assessment district and the levy of the
assessment shall be conducted in accordance with this division, with
appropriate modifications to all resolutions and notices.
   10555.  The legislative body shall provide in the resolutions
required under Sections 10200 and 10312 that the assessment will be
collected in annual installments.