BILL NUMBER: AB 485 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 24, 2012
AMENDED IN SENATE JUNE 29, 2011
AMENDED IN ASSEMBLY MAY 5, 2011
INTRODUCED BY Assembly Member Ma
(Coauthor: Senator Wolk)
FEBRUARY 15, 2011
An act to amend Sections 53395.1 53395.3, 53395.10,
53395.11, 53395.12, 53395.14, 53395.19, 53395.20, 53396, 53397.1, and
53397.2 of, and to add Sections 53395.7.5 and 65460.2.5 to, the
Government Code Section 748.5 of the Public Utilities
Code , relating to local planning
greenhouse gases .
LEGISLATIVE COUNSEL'S DIGEST
AB 485, as amended, Ma. Infrastructure financing.
Greenhouse gases.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum,
technologically feasible, and cost-effective greenhouse gas emissions
reductions. The act authorizes the state board to include use of
market-based compliance mechanisms. Existing law requires all moneys,
except for fines and penalties, collected by the state board from
the auction or sale of allowances as part of a market-based
compliance mechanism to be deposited in the Greenhouse Gas Reduction
Fund and to be available upon appropriation by the Legislature.
Under the Public Utilities Act, the Public Utilities Commission
has regulatory jurisdiction over public utilities, including
electrical corporations. A violation of the Public Utilities Act or
any order, decision, rule, direction, demand, or requirement of the
commission is a crime.
Existing law requires the commission, except as provided, to
require revenues, including any accrued interest, received by an
electrical corporation as a result of the direct allocation of
greenhouse gas allowances to electric utilities to be credited
directly to the residential, small business, public transportation
agency, and emissions-intensive trade-exposed retail customers of the
electrical corporation.
This bill would also require the revenues to be credited to public
transportation agency customers, and would define "public
transportation agency" for that purpose.
(1) The Transit Village Development Planning Act of 1994
authorizes a city or county to create a transit village plan for a
transit village development district that addresses specified
characteristics. Existing law authorizes the legislative body of the
city or county to adopt an infrastructure financing plan, create an
infrastructure financing district, and issue bonds for which only the
district is liable, to finance specified public facilities, upon
voter approval.
This bill would eliminate the requirement of voter approval for
the adoption of an infrastructure financing plan, the creation of an
infrastructure financing district, and the issuance of bonds with
respect to a transit village development district. The bill would
require a city or county that uses infrastructure financing district
bonds to finance its transit village development district to use at
least 20% of the revenue from those bonds for the purposes of
increasing, improving, and preserving the supply of lower and
moderate-income housing; to require that those housing units remain
available and occupied by moderate-, low-, very low, and extremely
low income households for at least 55 years for rental units and 45
years for owner-occupied units; and to rehabilitate, develop, or
construct for rental or sale to persons and families of low or
moderate income an equal number of replacement dwellings to those
removed or destroyed from the low- and moderate-income segment of the
housing market as a result of the development of the district, as
specified. The bill would set forth the findings and declarations of
the Legislature, and the intent of the Legislature that the
development of transit village development districts be
environmentally conscious and sustainable, and that related
construction meet or exceed the requirements of the California Green
Building Standards Code.
(2) Existing law prohibits the legislative body of a city or
county from enacting a resolution proposing the formation of an
infrastructure finance district 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 that is proposed to be subject to the division of taxes has
been filed with the legislative body at or prior to the time of the
hearing.
This bill would require, in the case of an affected taxing entity
that is a special district that provides fire protection services and
where the county board of supervisors is the governing authority or
has appointed itself as the governing board of the district, that the
proposed infrastructure financing district plan be adopted by a
separate resolution approved by the special district's governing
authority or board.
This bill would also eliminate the requirement of voter approval
and authorize the legislative body to create the district, adopt the
plan, and issue the bonds by resolutions.
(3) Existing law requires that an infrastructure financing plan
created by a legislative body to include a date on which the
infrastructure finance district will cease to exist, which shall not
be more than 30 years from the date on which the ordinance forming
the district is adopted.
This bill instead would specify that the date on which the
infrastructure finance district would cease to exist would not be
more than 40 years from the date on which the legislative body
adopted the resolution adopting the infrastructure financing plan.
The bill would also impose additional reporting requirements after
the adoption of an infrastructure financing plan.
Because a violation of a requirement of the commission is a crime.
This bill would impose a State-mandated local program by changing
the definition of a crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 748.5 of the Public
Utilities Code is amended to read:
748.5. (a) Except as provided in subdivision (c), the commission
shall require revenues, including any accrued interest, received by
an electrical corporation as a result of the direct allocation of
greenhouse gas allowances to electric utilities pursuant to
subdivision (b) of Section 95890 of Title 17 of the California Code
of Regulations to be credited directly to the residential, small
business, and public transportation agency,
and emissions-intensive trade-exposed retail customers of the
electrical corporation. As used in this subdivision, "public
transportation agency" means a public agency that provides
public transportation as defined in subparagraph (A) of
paragraph (1) of subdivision (f) of Section 1 of Article XIX
A of the California Constitution.
(b) Not later than January 1, 2013, the commission shall require
the adoption and implementation of a customer outreach plan for each
electrical corporation, including, but not limited to, such measures
as notices in bills and through media outlets, for purposes of
obtaining the maximum feasible public awareness of the crediting of
greenhouse gas allowance revenues. Costs associated with the
implementation of this plan are subject to recovery in rates pursuant
to Section 454.
(c) The commission may allocate up to 15 percent of the revenues,
including any accrued interest, received by an electrical corporation
as a result of the direct allocation of greenhouse gas allowances to
electrical distribution utilities pursuant to subdivision (b) of
Section 95890 of Title 17 of the California Code of Regulations, for
clean energy and energy efficiency projects established pursuant to
statute that are administered by the electrical corporation and that
are not otherwise funded by another funding source.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. (a) The Legislature finds and
declares all of the following:
(1) Federal, state, and local governments in California are
investing in new and expanded transit systems in areas throughout the
state, including Los Angeles County, the San Francisco Bay area, San
Diego County, Santa Clara County, and Sacramento County.
(2) This public investment in transit is unrivaled in the state's
history and represents well over ten billion dollars
($10,000,000,000) in planned investment alone.
(3) Recent studies of transit ridership in California indicate
that people who live within a one-half mile radius of transit
stations utilize the transit system in far greater numbers than does
the general public living elsewhere.
(4) The planning strategy of clustering housing and commercial
development around transit stations, and the creation of transit
villages pursuant to that strategy, has gained momentum in recent
years.
(5) Only a few transit stations in California have any
concentration of housing in close proximity to the station.
(6) The greater use of public transit facilitated by the
development of transit villages improves local street, road, and
highway congestion by providing viable alternatives to automobile
use.
(7) The development of transit village development districts can
improve environmental conditions by increasing the use of public
transit, facilitating the creation of and improvements to walkable,
mixed-use communities, and decreasing automobile use.
(8) Transit-oriented development can improve local and regional
economies by providing appropriate commercial and residential
development opportunities, including investment in local transit
village development, job creation through the construction of related
facilities, and job creation through employment opportunities
associated with related entertainment, retail, residential, and other
mixed-use development.
(9) Facilitating the use of infrastructure financing districts for
transit village development could provide local jurisdictions with a
cost-effective tool for pursuing transit-oriented development
projects.
(10) Tax-increment financing of transit village development
districts will provide a new tool for green development to help
achieve the sustainable communities strategy and regional
transportation plan goals of Senate Bill 375 (Chapter 728 of the
Statutes of 2008), as well as the greenhouse gas reduction goals of
Assembly Bill 32 (Chapter 488 of the Statutes of 2006).
(11) Tax-increment financing has been a useful tool for local
government to fund redevelopment projects, and the need for the state
to continue to provide local governments with revenue generating
infrastructure financing tools during difficult economic times. Local
governments will benefit greatly from the expanded use of
infrastructure financing districts for the delivery of
transit-oriented development and related low-income housing.
(b) It is the intent of the Legislature that the development of
transit village development districts throughout the state be
environmentally conscious and sustainable, and that related
construction meet or exceed the requirements of the California Green
Building Standards Code, Part 11 of Title 24 of the California Code
of Regulations, or its successor code.
SEC. 2. Section 53395.1 of the Government Code
is amended to read:
53395.1. Unless the context otherwise requires, the following
definitions shall govern the construction of this chapter:
(a) "Affected taxing entity" means any governmental taxing agency
that levied or had levied on its behalf a property tax on all or a
portion of the property located in the proposed district in the
fiscal year prior to the designation of the district, but not
including any county office of education, school district, or
community college district.
(b) "City" means a city, a county, or a city and county.
(c) "Debt" means any binding obligation to repay a sum of money,
including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals.
(d) "Designated official" means the city engineer or other
appropriate official designated pursuant to Section 53395.13.
(e) (1) "District" means an infrastructure financing district.
(2) An infrastructure financing district is a "district" within
the meaning of Section 1 of Article XIII A of the California
Constitution.
(f) "Infrastructure financing district" means a legally
constituted governmental entity established pursuant to this chapter
for the sole purpose of financing public facilities.
(g) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body. The
legislative body has no obligation to obtain other information as to
the ownership of land, and its determination of ownership shall be
final and conclusive for the purposes of this chapter. A public
agency is not a landowner or owner of land for purposes of this
chapter, unless the public agency owns all of the land to be included
within the proposed district.
(h) "Legislative body" means the city council or board of
supervisors.
(i) "Transit facility" includes, but is not limited to, any
publicly owned facility and amenity necessary to implement a transit
village plan adopted pursuant to Article 8.5 (commencing with Section
65460) of Chapter 3 of Division 1 of Title 7.
SEC. 3. Section 53395.3 of the Government Code
is amended to read:
53395.3. (a) A district may finance (1) the purchase,
construction, expansion, improvement, seismic retrofit, or
rehabilitation of any real or other tangible property with an
estimated useful life of 15 years or longer which satisfies the
requirements of subdivision (b), (2) may finance planning and design
work which is directly related to the purchase, construction,
expansion, or rehabilitation of that property, and (3) the costs
described in Sections 53395.5, and 53396.5. A district shall only
finance the purchase of facilities for which construction has been
completed, as determined by the legislative body. The facilities need
not be physically located within the boundaries of the district. A
district may not finance routine maintenance, repair work, or the
costs of ongoing operation or providing services of any kind. A
district shall not compensate the members of the legislative body of
the city for any activities undertaken pursuant to this chapter.
(b) The district shall finance only public capital facilities
including, but not limited to, all of the following:
(1) Highways, interchanges, ramps and bridges, arterial streets,
parking facilities, and transit facilities.
(2) Sewage treatment and water reclamation plants and interceptor
pipes.
(3) Facilities for the collection and treatment of water for urban
uses.
(4) Flood control levees and dams, retention basins, and drainage
channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, and open space.
(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(c) Any district which constructs dwelling units shall set aside
not less than 20 percent of those units to increase and improve the
community's supply of low- and moderate-income housing available at
an affordable housing cost, as defined by Section 50052.5 of the
Health and Safety Code, to persons and families of low- and
moderate-income, as defined in Section 50093 of the Health and Safety
Code.
SEC. 4. Section 53395.7.5 is added to the
Government Code, to read:
53395.7.5. With respect to an infrastructure financing district
proposed to implement a transit village plan adopted pursuant to
Article 8.5 (commencing with Section 65460) of Chapter 3 of Division
1 of Title 7, an election is not required to form an infrastructure
financing district, adopt an infrastructure financing plan, or issue
bonds pursuant to this chapter. Any other provision of this chapter
applies to the formation of an infrastructure financing district and
the adoption of an infrastructure financing plan.
SEC. 5. Section 53395.10 of the Government Code
is amended to read:
53395.10. A legislative body of a city may designate one or more
proposed infrastructure financing districts pursuant to this chapter.
Proceedings for the establishment of a district shall be instituted
by the adoption of a resolution of intention to establish the
proposed district and shall do all of the following:
(a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.
(b) State the type of public facilities proposed to be financed by
the district. The district may only finance public facilities
authorized by Section 53395.3.
(c) State the need for the district and the goals the district
proposes to achieve by financing public facilities.
(d) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district may be used
to finance these public facilities.
(e) Fix a time and place for a public hearing on the proposal.
SEC. 6. Section 53395.11 of the Government Code
is amended to read:
53395.11. The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district and to each affected taxing entity.
SEC. 7. Section 53395.12 of the Government Code
is amended to read:
53395.12. The legislative body shall direct the clerk to post a
copy of the resolution of intention to create the district in an
easily identifiable and accessible location on the legislative body's
Internet Web site.
SEC. 8. Section 53395.14 of the Government Code
is amended to read:
53395.14. After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.13 shall prepare a proposed infrastructure financing plan. The
infrastructure financing plan shall be consistent with the general
plan of the city within which the district is located and shall
include all of the following:
(a) A map and legal description of the proposed district, which
may include all or a portion of the district designated by the
legislative body in its resolution of intention.
(b) A description of the public facilities required to serve the
development proposed in the area of the district including those to
be provided by the private sector, those to be provided by
governmental entities without assistance under this chapter, those
public improvements and facilities to be financed with assistance
from the proposed district, and those to be provided jointly. The
description shall include the proposed location, timing, and costs of
the public improvements and facilities.
(c) A finding that the public facilities provide significant
benefits to an area larger than the area of the district.
(d) A financing section, which shall contain all of the following
information:
(1) A specification of the maximum portion of the incremental tax
revenue of the city and of each affected taxing entity proposed to be
committed to the district for each year during which the district
will receive incremental tax revenue. The portion need not be the
same for all affected taxing entities. The portion may change over
time.
(2) A projection of the amount of tax revenues expected to be
received by the district in each year during which the district will
receive tax revenues, including an estimate of the amount of tax
revenues attributable to each affected taxing entity for each year.
(3) A plan for financing the public facilities to be assisted by
the district, including a detailed description of any intention to
incur debt.
(4) A limit on the total number of dollars of taxes which may be
allocated to the district pursuant to the plan.
(5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than 40 years from the date on which the ordinance forming
the district is adopted pursuant to Section 53395.23.
(6) An analysis of the costs to the city of providing facilities
and services to the area of the district while the area is being
developed and after the area is developed. The plan shall also
include an analysis of the tax, fee, charge, and other revenues
expected to be received by the city as a result of expected
development in the area of the district.
(7) An analysis of the projected fiscal impact of the district and
the associated development upon each affected taxing entity.
(e) If any dwelling units occupied by persons or families of low
or moderate income are proposed to be removed or destroyed in the
course of private development or public works construction within the
area of the district, a plan providing for replacement of those
units and relocation of those persons or families consistent with the
requirements of Section 53395.5.
(f) The goals the district proposes to achieve by financing public
facilities.
SEC. 9. Section 53395.19 of the Government Code
is amended to read:
53395.19. (a) The legislative body shall not enact a resolution
proposing formation of a district and providing for the division of
taxes of any affected taxing entity pursuant to Article 3 (commencing
with Section 53396) 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 pursuant to Article 3
(commencing with Section 53396) has been filed with the legislative
body at or prior to the time of the hearing.
(b) In the case of an affected taxing entity that is a special
district that provides fire protection services and where the county
board of supervisors is the governing authority or has appointed
itself as the governing board of the district, the plan shall be
adopted by a separate resolution approved by the district's governing
authority or governing board.
(c) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting a resolution proposing formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity which has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
SEC. 10. Section 53395.20 of the Government
Code is amended to read:
53395.20. (a) At the conclusion of the hearing required by
Section 53395.17, the legislative body may adopt a resolution
adopting the infrastructure financing plan, as modified, and
approving the formation of the infrastructure financing district in a
manner consistent with Section 53395.19, or it may abandon the
proceedings.
(b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the legislative body shall direct the
clerk to mail an annual report to each owner of land within the
district and each affected taxing entity. The legislative body shall
direct the clerk to post this annual report in an easily identifiable
and accessible location on the legislative body's Internet Web site.
The annual report shall contain all of the following:
(1) A summary of the district's expenditures.
(2) A description of the progress made towards the district's
adopted goals.
(3) An assessment of the status regarding completion of the
district's public works projects.
(c) If the district fails to provide the annual report required by
subdivision (b), the district shall not spend any funds to construct
public works projects until the annual report is submitted.
(d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public works
projects; provided, however, the district may complete any public
works projects that it had started. Any excess property tax increment
revenues that had been allocated for new public works projects shall
be reallocated to the affected taxing entities.
SEC. 11. Section 53396 of the Government Code
is amended to read:
53396. Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the ordinance adopted pursuant to Section
53395.23 to create the district, unless the district implements a
transit village plan pursuant to Section 53395.75, shall be divided
as follows:
(a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
ordinance adopted pursuant to Section 53395.23 to create the
district, shall be allocated to, and when collected shall be paid to,
the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district. Unless and
until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
SEC. 12. Section 53397.1 of the Government Code
is amended to read:
53397.1. The legislative body may, by majority vote, initiate
proceedings to issue bonds pursuant to this chapter by adopting a
resolution.
SEC. 13. Section 53397.2 of the Government Code
is amended to read:
53397.2. The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
(a) A description of the facilities to be financed with the
proceeds of the bond issue.
(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the bond
issuance.
(c) The maximum interest rate and discount on the proposed bond
issuance.
(d) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
(e) A finding that the amount necessary to pay the principal of,
and interest on, the bond issuance will be less than, or equal to,
the amount determined pursuant to subdivision (d).
(f) The issuance of the bonds in one or more series.
(g) The date the bonds will bear.
(h) The denomination of the bonds.
(i) The form of the bonds.
(j) The manner and execution of the bonds.
(k) The medium of payment in which the bonds are payable.
(l) The place or manner of payment and any requirements for
registration of the bonds.
(m) The terms or call of redemption, with or without premium.
SEC. 11. Section 65460.2.5 is added to the
Government Code, to read:
65460.2.5. If a city, county, or city and county finances a
district that implements a transit village plan adopted pursuant to
Article 8.5 (commencing with Section 65460) of Chapter 3 of Division
1 of Title 7, the city, county, or city and county shall do all of
the following:
(a) Use at least 20 percent of all revenues derived from the
property tax increment under Chapter 2.8 (commencing with Section
53395) of Part 1 of Division 2 of Title 5 for the purposes of
increasing, improving, and preserving the supply of lower and
moderate-income housing available in the
district at an affordable housing cost, as
defined in Section 50052.5 of the Health and Safety Code, and
occupied by persons and families of low or moderate income, as
defined in Section 50093 of the Health and Safety Code, lower income
households, as defined in Section 50079.5 of the Health and Safety
Code, very low income households, as defined in Section 50105 of the
Health and Safety Code, and extremely low income households, as
defined in Section 50106 of the Health and Safety Code. The amount of
very low, low- and moderate-income housing shall be in compliance
with the Community Redevelopment Law (Part 1 (commencing with Section
33000) of Division 24 of the Health and Safety Code) and any adopted
policies of the city, county, or city and county that adopted the
transit village plan.
(b) Require that housing units described in subdivision (a) remain
available at affordable housing cost to, and occupied by, persons
and families of low or moderate income and very low income and
extremely low income households for the longest feasible time, but
for not less than 55 years for rental units and 45 years for
owner-occupied units. The covenants or restrictions implementing this
requirement shall be in compliance with subdivision (f) of Section
33334.3 of the Health and Safety Code.
(c) Rehabilitate, develop, or construct, or cause to be
rehabilitated, developed, or constructed for rental or sale to
persons or families of low or moderate income an equal number of
replacement dwelling units that have an equal or greater number of
bedrooms as the destroyed or removed units, at affordable housing
costs within the district, and within four years after the
destruction or removal, whenever dwelling units housing persons or
families of low or moderate income are destroyed or removed from the
low- and moderate-income housing market as part of the development of
a district that is subject to a written agreement with the city,
county, or city and county, or when financial assistance has been
provided by the city, county, or city and county. The replacement
dwelling units shall be available at affordable housing cost to, and
occupied by, persons and families in the same or a lower income
category as the persons and families displaced from those destroyed
or removed units.
(d) Include in the transit village plan both of the following:
(1) As one of the five demonstrable public benefits required by
subdivision (f) of Section 65460.2, either an increased stock of
affordable housing or live-travel options for transit-needy groups.
(2) Provisions to implement subdivisions (a) and (b) and paragraph
(1).