BILL ANALYSIS �
AB 715
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CONCURRENCE IN SENATE AMENDMENTS
AB 715 (Dickinson)
As Amended June 16, 2014
Majority vote
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|ASSEMBLY: | |(May 28, 2013) |SENATE: |35-0 |(July 3, 2014) |
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(vote not relevant)
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|COMMITTEE VOTE: |8-0 |(August 13, 2014) |RECOMMENDATION: |concur |
|(L. Gov.) | | | | |
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Original Committee Reference: JUD.
SUMMARY : Authorizes the Sacramento Area Flood Control Agency
(SAFCA) to make specified changes to existing benefit assessment
districts pursuant to the requirements put in place by Proposition
218 of 1996.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Define that "change" includes "correct, alter, modify, add, omit,
increase, decrease, extend, or any other change."
2)Authorize SAFCA to change, at any time, any of the following:
a) The boundaries of an assessment district established by
SAFCA;
b) Any project identified in a report prepared by SAFCA in
order to form an assessment district;
c) Any assessment levied by SAFCA; and,
d) Any act, determination, or provision by SAFCA or the board
with respect to any assessment district established by SAFCA.
3)Require any proceeding for any change described in 2) above, to
be initiated, conducted, and completed consistent with:
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a) California Constitution Article XIII Section D;
b) The Proposition 218 Omnibus Implementation Act; and,
c) The procedures provided in existing law for SAFCA for the
establishment of an assessment district, except as specified
in 4) and 5) below.
4)Require in proceedings to annex territory to an existing
assessment district that the resolution, report, notices of
hearing, right of majority protest and election are limited to
the territory proposed to be annexed.
5)Allow SAFCA in proceedings to detach an area from an existing
assessment district or dissolve an existing assessment district,
to dispense with the preparation and approval of the report
required pursuant to existing law at the formation of a new
assessment district.
6)Prohibit SAFCA from undertaking any change with respect to any
assessment district while the bonds secured by the assessment
levied in that assessment district are outstanding, unless the
board determines in a resolution of intention with respect to the
change that it will not interfere with the timely retirement of
the bonds.
AS PASSED BY THE ASSEMBLY , this bill revised appellate review of
certain summary judgment issues.
FISCAL EFFECT : None
COMMENTS :
1)Sacramento Flood Control Agency (SAFCA). SAFCA, formed in 1990,
is a joint powers agency comprised of Sacramento County, Sutter
County, the City of Sacramento, Sacramento County Water Agency,
Sutter County Water Agency, Reclamation District No. 1000, and
the American River Flood Control District. SAFCA is responsible
for coordinating a regional effort to finance, provide, and
maintain facilities and works necessary to ensure a reasonable
and prudent level of flood protection in designated residential,
commercial, or industrial areas within its boundaries and for
providing local assurances and participating in cost sharing for
federal flood control projects. SAFCA is governed by the
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Sacramento Area Flood Control Agency Act enacted by the
Legislature in 1990 (SB 46 (Garamendi), Chapter 510).
Current law authorizes SAFCA to levy assessments, reassessments,
or special taxes and to issue bonds to finance the acquisition,
construction, maintenance, or operation of authorized flood
control facilities. SAFCA may levy assessments, reassessments,
or special taxes, and issue bonds pursuant to the Improvement Act
of 1911, the Improvement Bond Act of 1915, the Municipal
Improvement Act of 1913, the Benefit Assessment Act of 1982, the
Integrated Financing District Act, the Mello-Roos Community
Facilities Act of 1982, and the Marks-Roos Local Bond Pooling Act
of 1985. SAFCA's special act also establishes another process
that SAFCA may use, as an alternative or in addition to its other
powers, to levy assessments and issue bonds. Unlike some other
state laws authorizing local governments to levy benefit
assessments, current law does not explicitly authorize SAFCA to
make changes to an existing assessment district.
2)Purpose of this bill. This bill authorizes SAFCA to make changes
to the boundaries, projects, assessments, and any act,
determination or provision by SAFCA with respect to any existing
assessment districts established by SAFCA. Under this bill,
SAFCA must comply with the requirements in California
Constitution Article XIII Section D, the Proposition 218 Omnibus
Implementation Act, and the requirements in existing law for
SAFCA to initiate, conduct, and complete proceedings for any
change. This bill defines the term "change" to include "correct,
alter, modify, add, omit, increase, decrease, extend, or any
other change."
This bill also requires that, in proceedings to annex territory
to an existing assessment district, the resolutions, report,
notices of hearing, right of majority protest, and any election
must be limited to the territory proposed to be annexed. In
proceedings to detach an area from an existing assessment
district or dissolve an existing assessment district, SAFCA may
dispense with the preparation and approval of the report that is
required as part of the process to establish a district. This
bill prohibits SAFCA from making a change to any assessment
district while the bond secured by the assessments levied in that
assessment district are outstanding, unless SAFCA's board
determines in the resolution of intention with respect to the
change that it will not interfere with the bonds' timely
retirement. This bill is sponsored by SAFCA.
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3)Author's statement. According to the author, "Now that the
[United States] President has signed legislation authorizing the
Natomas Levee Project, the local community must begin working on
coming up with the local share of the costs. SAFCA has two
assessment districts in place already. Funds from those
assessments have gone toward work currently completed on the
Natomas Levee project. SAFCA could create another assessment
district. This is time consuming and expensive. Or, as this
[bill] envisions, SAFCA could modify one of the existing
districts and save the time and expense of a third district.
This 'new' district would have to be voted upon and approved by
the local residents, and it is subject to the requirements of
Article XIII D of the California Constitution and Proposition
218."
4)Benefit Assessments and Proposition 218. Most of the special
assessment acts provide for the issuance of bonds, generally
secured by the property within the district, and then the bonded
indebtedness is repaid with money generated by the assessments.
Most assessments are levied against real property, and are
generally collected on the property tax roll, secured by a lien
against the assessed property, and subject to Proposition 218.
Proposition 218 distinguishes among taxes, assessments and fees
for property-related revenues, and requires certain actions
before such revenues may be collected. Counties and other local
agencies with police powers may impose any one of these options
on property owners, after completing the Proposition 218 process.
Special districts created by statute, however, must have
specific authority for each of these revenue sources.
5)Arguments in support. Supporters argue that this bill authorizes
SAFCA to increase an assessment, extend its term, and change the
boundaries of an existing assessment district in compliance with
existing law, including Proposition 218.
6)Arguments in opposition. None.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
FN: 0004648
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