Amended in Senate August 11, 2014

Amended in Senate June 18, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2194

Introduced by Assembly Member Mullin

February 20, 2014

begin delete An act to amend Sections 53313 and 53313.5 of the Government Code, relating to local government. end delete begin insert An act to amend Sections 15360, 15560, and 15626 of, to amend the heading of Chapter 8.5 (commencing with Section 15560) of Division 15 of, and to add Article 5 (commencing with Section 15645) to Chapter 9 of Division 15 of, the Elections Code, relating to elections, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2194, as amended, Mullin. begin delete Mello-Roos Community Facilities Act of 1982: storm water. end delete begin insert Elections: statewide recounts. end insert

begin insert

(1) Existing law establishes procedures by which a voter may request a recount of the votes cast in an election following completion of the official canvass. Under existing law, the voter seeking the recount is required, before the recount is commenced and at the beginning of each subsequent day, to deposit with the elections official the amount of money required by the elections official to cover the cost of the recount for that day.

end insert begin insert

This bill would require the Secretary of State to order an automatic manual recount of all votes cast for a statewide office or state ballot measure if the difference in the number of votes received is less than or equal to 0.1%. The bill would allow the Secretary of State and the candidates, or the proponents of a state ballot measure and the persons filing ballot arguments against the measure, to agree to an alternative method of conducting a recount in lieu of a full statewide recount. By imposing new duties on local elections officials, this bill would impose a state-mandated local program.

end insert begin insert

(2) Existing law authorizes the Secretary of State to establish a postcanvass risk-limiting audit pilot program for the purpose of verifying the accuracy of election results. Under the program, a participating county would conduct an audit of one or more contests in each election after the tabulation of the unofficial final results, as defined, or after completion of the official canvass for the election. Existing law requires, during the official canvass of an election in which a voting system is used, the elections official conducting the election to conduct a public manual tally of the ballots tabulated by those devices, including vote by mail voters’ ballots, cast in 1% of the precincts chosen at random by the elections official.

end insert begin insert

This bill would allow a county to conduct a postcanvass risk-limiting audit in lieu of a 1% manual tally.

end insert begin insert

(3) 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.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert begin insert

(4) This bill would declare that it is to take effect immediately as an urgency statute.

end insert begin delete

The Mello-Roos Community Facilities Act of 1982 authorizes a community facilities district to finance various services, including, but not limited to, flood and storm protection services, as specified.

end delete begin delete

This bill would additionally authorize the financing of storm water management.

end delete begin delete

The act also authorizes a community facilities district to finance the purchase, construction, expansion, improvement, or rehabilitation of certain facilities, including, among others, undergrounding of water transmission and distribution facilities.

end delete begin delete

This bill would authorize a community facilities district to finance the acquisition, improvement, rehabilitation, or maintenance of any publicly owned real or other tangible property for local agencies’ compliance with storm water management permits.

end delete

Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 15360 of the end insert begin insert Elections Code end insert begin insert is amended
to read: end insert

15360.  

(a) During the official canvass of every election in
which a voting system is used, the official conducting the election
shall conduct a public manual tally of the ballots tabulated by those
devices, including vote by mail ballots, using either of the
following methods:

(1) (A) A public manual tally of the ballots, including vote by
mail ballots, cast in 1 percent of the precincts chosen at random
by the elections official. If 1 percent of the precincts is less than
one whole precinct, the tally shall be conducted in one precinct
chosen at random by the elections official.

(B) (i) In addition to the 1 percent manual tally, the elections
official shall, for each race not included in the initial group of
precincts, count one additional precinct. The manual tally shall
apply only to the race not previously counted.

(ii) Additional precincts for the manual tally may be selected
at the discretion of the elections official.

(2) A two-part public manual tally, which includes both of the
following:

(A) A public manual tally of the ballots, not including vote by
mail ballots, cast in 1 percent of the precincts chosen at random
by the elections official and conducted pursuant to paragraph (1).

(B) (i) A public manual tally of not less than 1 percent of the
vote by mail ballots cast in the election. Batches of vote by mail
ballots shall be chosen at random by the elections official.

(ii) For the purposes of this section, a “batch” means a set of
ballots tabulated by the voting system devices, for which the voting
system can produce a report of the votes cast.

(iii) (I) In addition to the 1 percent manual tally of the vote by
mail ballots, the elections official shall, for each race not included
in the initial 1 percent manual tally of vote by mail ballots, count
one additional batch of vote by mail ballots. The manual tally shall
apply only to the race not previously counted.

(II) Additional batches for the manual tally may be selected at
the discretion of the elections official.

(b) If vote by mail ballots are cast on a direct recording
electronic voting system at the office of an elections official or at
a satellite location of the office of an elections official pursuant to
Section 3018, the official conducting the election shall either
include those ballots in the manual tally conducted pursuant to
paragraph (1) or (2) of subdivision (a) or conduct a public manual
tally of those ballots cast on no fewer than 1 percent of all the
direct recording electronic voting machines used in that election
chosen at random by the elections official.

(c) The elections official shall use either a random number
generator or other method specified in regulations that shall be
adopted by the Secretary of State to randomly choose the initial
precincts, batches of vote by mail ballots, or direct recording
electronic voting machines subject to the public manual tally.

(d) The manual tally shall be a public process, with the official
conducting the election providing at least a five-day public notice
of the time and place of the manual tally and of the time and place
of the selection of the precincts, batches, or direct recording
electronic voting machines subject to the public manual tally prior
to conducting the selection and tally.

(e) The official conducting the election shall include a report
on the results of the 1 percent manual tally in the certification of
the official canvass of the vote. This report shall identify any
discrepancies between the machine count and the manual tally and
a description of how each of these discrepancies was resolved. In
resolving any discrepancy involving a vote recorded by means of
a punchcard voting system or by electronic or electromechanical
vote tabulating devices, the voter verified paper audit trail shall
govern if there is a discrepancy between it and the electronic
record.

begin insert

(f) This section does not apply to a county that conducts a
postcanvass risk-limiting audit pursuant to Section 15560.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The heading of Chapter 8.5 (commencing with Section
15560) of Division 15 of the end insert begin insert Elections Code end insert begin insert is amended to read: end insert

 

Chapter  8.5. Postcanvass Risk-Limiting Audit begin delete Pilot
Program end delete

 

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 15560 of the end insert begin insert Elections Code end insert begin insert is amended to
read: end insert

begin delete

15560.  

(a) The Secretary of State is authorized to establish a
postcanvass risk-limiting audit pilot program in five or more
counties to improve the accuracy of, and public confidence in,
election results. The Secretary of State is encouraged to include
urban and rural counties; counties from northern, central, and
southern California; and counties with various different voting
systems.

(b) The pilot program described in subdivision (a) shall be
conducted as follows:

(1) During the year 2011, each county that chooses to participate
in the pilot program shall conduct a postcanvass risk-limiting audit
of one or more contests after each election in that county.

end delete

begin insert

begin insert 15560. end insert   

end insert begin insert

(a) (1)  Any county may conduct a postcanvass
risk-limiting audit of one or more contests after each election in
that county pursuant to this section in lieu of a 1 percent manual
tally, as provided for in Section 15360. The contest or contests to
be audited and the audit units examined shall be chosen at random
by the elections official using a random number generator or other
method approved by the Secretary of State pursuant to subdivision
(c) of Section 15360.

end insert

(2) An elections official conducting an audit pursuant to this
section shall do all of the following:

(A) Provide at least a five-day public notice of the time and
place of the random selection of the audit units to be manually
tallied and of the time and place of the audit.

(B) Make available to the public a report of the vote tabulating
device results for the contest, including the results for each audit
unit in the contest, prior to the random selection of audit units to
be manually tallied and prior to the commencement of the audit.

(C) Conduct the audit upon tabulation of the unofficial final
results or upon completion of the official canvass for the election.

(D) Conduct the audit in public view by hand without the use
of electronic scanning equipment using the tally procedures
established by Section 15360 for conducting a manual tally.

begin delete

(3) On or before March 1, 2012, the Secretary of State shall
report to the Legislature on the effectiveness and efficiency of
postcanvass risk-limiting audits conducted pursuant to this section.
The report shall include an analysis of the efficiency of postcanvass
risk-limiting audits, including the costs of performing the audits,
as compared to the 1-percent manual tallies conducted in the same
election pursuant to Section 15360.

end delete begin delete

(c) An audit shall not be conducted pursuant to this section with
respect to a state or multijurisdictional contest unless all of the
counties involved in the contest choose to participate in the pilot
program authorized by this section.

end delete begin delete

(d)

end delete

begin insert (b) end insert  For purposes of this section, the following terms have the
following meanings:

(1) “Audit unit” means a precinct, a set of ballots, or a single
ballot. A precinct, a set of ballots, or a single ballot may be used
as an audit unit for purposes of this section only if all of the
following conditions are satisfied:

(A) The relevant vote tabulating device is able to produce a
report of the votes cast in the precinct, set of ballots, or single
ballot.

(B) The elections official is able to match the report described
in subparagraph (A) with the ballots corresponding to the report
for purposes of conducting an audit pursuant to this section.

(C) Each ballot is assigned to not more than one audit unit.

(2) “Contest” means an election for an office or for a measure.
“Contest” shall not include either of the following:

(A) An election for a political party central committee, as
provided in Division 7 (commencing with Section 7000).

(B) An advisory election, as provided in Section 9603.

(3) “Risk-limiting audit” means a manual tally employing a
statistical method that ensures a large, predetermined minimum
chance of requiring a full manual tally whenever a full manual
tally would show an electoral outcome that differs from the
outcome reported by the vote tabulating device for the audited
contest. A risk-limiting audit shall begin with a hand tally of the
votes in one or more audit units and shall continue to hand tally
votes in additional audit units until there is strong statistical
evidence that the electoral outcome is correct. In the event that
counting additional audit units does not provide strong statistical
evidence that the electoral outcome is correct, the audit shall
continue until there has been a full manual tally to determine the
correct electoral outcome of the audited contest.

(4) “Unofficial final results” means election results tabulated
pursuant to an official canvass conducted pursuant to Chapter 4
(commencing with Section 15300) but not yet reported to the
governing board or the Secretary of State pursuant to subdivision
(h) of Section 15302.

begin insert

(c) The Secretary of State may adopt, amend, and repeal rules
and regulations necessary for the administration of this section.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 15626 of the end insert begin insert Elections Code end insert begin insert is amended to
read: end insert

15626.  

The recount shall be commenced not more than seven
days following the receipt by the elections official of the request
for the recount under Section 15620 begin delete or end delete begin insert , end insert 15621, begin insert or 15645 end insert and shall
be continued daily, Saturdays, Sundays, and holidays excepted,
for not less than six hours each day until completed. The recount
shall not be commenced until the first day following notification
of the individuals specified in Section 15628.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Article 5 (commencing with Section 15645) is added
to Chapter 9 of Division 15 of the end insert begin insert Elections Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 5. end insert   Automatic Recounts

 

begin insert 15645. end insert   

(a) Within five days after the Secretary of State files a
statement of the vote, as required by subdivision (b) of Section
15501, the Secretary of State shall order an automatic manual
recount of all votes cast for a statewide office or state ballot
measure if any of the following occurs:

(1) The official canvass of returns in a statewide primary
election shows that the difference in the number of votes received
by the second and third place candidates for a statewide office is
less than or equal to one-tenth of 1 percent of the number of all
votes cast for both candidates.

(2) The official canvass of returns in a statewide general election
shows that the difference in the number of votes received by the
two candidates receiving the greatest number of votes for a
statewide office is less than or equal to one-tenth of 1 percent of
the number of all votes cast for both candidates.

(3) The official canvass of returns in a statewide election shows
that the difference in the number of votes cast for and against a
state ballot measure is less than or equal to one-tenth of 1 percent
of the number of all votes cast on the measure.

(b) (1) The Secretary of State and both candidates, or the
proponents of the state ballot measure and the persons filing ballot
arguments against the measure, subject to a recount under this
section may agree to use an alternative method of conducting the
recount in lieu of a full statewide recount. The reason for agreeing
to an alternative method of recount may include, but is not limited
to, the discovery of uncounted ballots or a counting error in one
or more precincts or counties.

(2) The Secretary of State shall notify the elections official of
each county of, and shall direct county elections officials to
implement, the alternative method of conducting the recount.

(3) If an alternative method of conducting a recount is
implemented pursuant to this subdivision, a voter may request a
recount pursuant to Section 15623.

(c) It is the intent of the Legislature to fully reimburse counties
for costs resulting from conducting an automatic manual recount
required by this section in an expeditious manner upon certification
of those costs. A candidate shall not be charged for an automatic
manual recount required by this section.

begin insert 15646. end insert   

Upon ordering a recount pursuant to subdivision (a)
of Section 15645, the Secretary of State shall notify the elections
official of each county and shall direct the county elections officials
to recount all the votes cast for the office or for and against the
state ballot measure. The elections official in each county shall
commence the recount within seven days of receiving notice under
this section.

begin insert 15647. end insert   

All the provisions of Article 3 (commencing with Section
15620), except Sections 15620, 15621, 15622, 15623, 15624, and
15627, shall apply to this article unless otherwise provided herein.

begin insert 15648. end insert   

The Secretary of State may adopt, amend, and repeal
rules and regulations necessary for the administration of this
article.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order to ensure that all eligible voters are able to have their
votes counted at the November 4, 2014, statewide general election,
it is necessary for this act to take effect immediately.

end insert

begin delete

  

SECTION 1.  

Section 53313 of the Government Code is
amended to read:

53313.  

A community facilities district may be established under
this chapter to finance any one or more of the following types of
services within an area:

(a) Police protection services, including, but not limited to,
criminal justice services. However, criminal justice services shall
be limited to providing services for jails, detention facilities, and
juvenile halls.

(b) Fire protection and suppression services, and ambulance
and paramedic services.

(c) Recreation program services, library services, maintenance
services for elementary and secondary schoolsites and structures,
and the operation and maintenance of museums and cultural
facilities. A special tax may be levied for any of the services
specified in this subdivision only upon approval of the registered
voters as specified in subdivision (b) of Section 53326. An election
to enact a special tax for recreation program services, library
services, and the operation and maintenance of museums and
cultural facilities may be conducted pursuant to subdivision (c) of
Section 53326.

(d) Maintenance and lighting of parks, parkways, streets, roads,
and open space.

(e) Flood, storm protection services, and storm water
management, including, but not limited to, local agencies’
compliance with state and federal storm water permit requirements,
the operation and maintenance of storm drainage systems, plowing
and removal of snow, and sandstorm protection systems.

(f) Services with respect to removal or remedial action for the
cleanup of any hazardous substance released or threatened to be
released into the environment. As used in this subdivision, the
terms “remedial action” and “removal” shall have the meanings
set forth in Sections 25322 and 25323, respectively, of the Health
and Safety Code, and the term “hazardous substance” shall have
the meaning set forth in Section 25281 of the Health and Safety
Code. Community facilities districts shall provide the State
Department of Health Care Services and local health and building
departments with notification of any cleanup activity pursuant to
this subdivision at least 30 days prior to commencement of the
activity.

(g) Maintenance and operation of any real property or other
tangible property with an estimated useful life of five or more
years that is owned by the local agency or by another local agency
pursuant to an agreement entered into under Section 53316.2.

A community facilities district tax approved by vote of the
landowners of the district may only finance the services authorized
in this section to the extent that they are in addition to those
provided in the territory of the district before the district was
created. The additional services shall not supplant services already
available within that territory when the district was created.

Bonds shall not be issued pursuant to this chapter to fund any
of the services specified in this section, although bonds may be
issued to fund capital facilities to be used in providing these
services.

SEC. 2.  

Section 53313.5 of the Government Code is amended
to read:

53313.5.  

A community facilities district may also finance the
purchase, construction, expansion, improvement, or rehabilitation
of any real or other tangible property with an estimated useful life
of five years or longer or may finance planning and design work
that is directly related to the purchase, construction, expansion, or
rehabilitation of any real or tangible property. The facilities need
not be physically located within the district. A district may not
lease out facilities that it has financed except pursuant to a lease
agreement or annexation agreement entered into prior to January
1, 1988. A district may only finance the purchase of facilities
whose construction has been completed, as determined by the
legislative body, before the resolution of formation to establish
the district is adopted pursuant to Section 53325.1, except that a
district may finance the purchase of facilities completed after the
adoption of the resolution of formation if the facility was
constructed as if it had been constructed under the direction and
supervision, or under the authority of, the local agency that will
own or operate the facility. For example, a community facilities
district may finance facilities, including, but not limited to, the
following:

(a) Local park, recreation, parkway, and open-space facilities.

(b) Elementary and secondary schoolsites and structures
provided that the facilities meet the building area and cost standards
established by the State Allocation Board.

(c) Libraries.

(d) Child care facilities, including costs of insuring the facilities
against loss, liability insurance in connection with the operation
of the facility, and other insurance costs relating to the operation
of the facilities, but excluding all other operational costs. However,
the proceeds of bonds issued pursuant to this chapter shall not be
used to pay these insurance costs.

(e) The district may also finance the construction or
undergrounding of water transmission and distribution facilities,
natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable
television lines to provide access to those services to customers
who do not have access to those services or to mitigate existing
visual blight. The district may enter into an agreement with a public
utility to utilize those facilities to provide a particular service and
for the conveyance of those facilities to the public utility. “Public
utility” shall include all utilities, whether public and regulated by
the Public Utilities Commission, or municipal. If the facilities are
conveyed to the public utility, the agreement shall provide that the
cost or a portion of the cost of the facilities that are the
responsibility of the utility shall be refunded by the public utility
to the district or improvement area thereof, to the extent that
refunds are applicable pursuant to (1) the Public Utilities Code or
rules of the Public Utilities Commission, as to utilities regulated
by the commission, or (2) other laws regulating public utilities.
Any reimbursement made to the district shall be utilized to reduce
or minimize the special tax levied within the district or
improvement area, or to construct or acquire additional facilities
within the district or improvement area, as specified in the
resolution of formation.

(f) (1) The district may also finance the acquisition,
improvement, rehabilitation, or maintenance of any real or other
tangible property, whether privately or publicly owned, for flood
and storm protection services, including, but not limited to, storm
drainage and treatment systems and sandstorm protection systems.

(2) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any publicly owned real or other
tangible property for local agencies’ compliance with storm water
management permits.

(g) The district may also pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or
defease any obligation to pay or any indebtedness secured by any
tax, fee, charge, or assessment levied within the area of a
community facilities district or may pay debt service on that
indebtedness. When the amount financed by the district is to pay
a tax, fee, charge, or assessment imposed by a public agency other
than the one conducting the proceedings, and if the amount
provided to the other public agency will not be entirely used to
pay off or prepay an assessment lien or special tax obligation
pursuant to the property owner’s legal right to do so, the written
consent of the other public agency is required. In addition, tax
revenues of a district may be used to make lease or debt service
payments on any lease, lease-purchase contract, or certificate of
participation used to finance facilities authorized to be financed
by the district.

(h) Any other governmental facilities that the legislative body
creating the community facilities district is authorized by law to
contribute revenue to, or construct, own, or operate. However, the
district shall not operate or maintain or, except as otherwise
provided in subdivisions (e) and (k), have any ownership interest
in any facilities for the transmission or distribution of natural gas,
telephone service, or electrical energy.

(i) (1) A district may also pay for the following:

(A) Work deemed necessary to bring buildings or real property,
including privately owned buildings or real property, into
compliance with seismic safety standards or regulations. Only
work certified as necessary to comply with seismic safety standards
or regulations by local building officials may be financed. No
project involving the dismantling of an existing building and its
replacement by a new building, nor the construction of a new or
substantially new building may be financed pursuant to this
subparagraph. Work on qualified historical buildings or structures
shall be done in accordance with the State Historical Building
Code (Part 2.7 (commencing with Section 18950) of Division 13
of the Health and Safety Code).

(B) In addition, within any county or area designated by the
President of the United States or by the Governor as a disaster area
or for which the Governor has proclaimed the existence of a state
of emergency because of earthquake damage, a district may also
pay for any work deemed necessary to repair any damage to real
property directly or indirectly caused by the occurrence of an
earthquake cited in the President’s or the Governor’s designation
or proclamation, or by aftershocks associated with that earthquake,
including work to reconstruct, repair, shore up, or replace any
building damaged or destroyed by the earthquake, and specifically
including, but not limited to, work on any building damaged or
destroyed in the Loma Prieta earthquake that occurred on October
17, 1989, or by its aftershocks. Work may be financed pursuant
to this subparagraph only on property or buildings identified in a
resolution of intention to establish a community facilities district
adopted within seven years of the date on which the county or area
is designated as a disaster area by the President or by the Governor
or on which the Governor proclaims for the area the existence of
a state of emergency.

(2) Work on privately owned property, including reconstruction
or replacement of privately owned buildings pursuant to
subparagraph (B) of paragraph (1), may only be financed by a tax
levy if all of the votes cast on the question of levying the tax, vote
in favor of levying the tax, or with the prior written consent to the
tax of the owners of all property that may be subject to the tax, in
that case the prior written consent shall be deemed to constitute a
vote in favor of the tax and any associated bond issue. Any district
created to finance seismic safety work on privately owned
buildings, including repair, reconstruction, or replacement of
privately owned buildings pursuant to this subdivision, shall consist
only of lots or parcels that the legislative body finds have buildings
that were damaged or destroyed by the earthquake cited pursuant
to subparagraph (B) of paragraph (1) or by the aftershocks of that
earthquake.

(j) A district may also pay for the following:

(1) Work deemed necessary to repair and abate damage caused
to privately owned buildings and structures by soil deterioration.
“Soil deterioration” means a chemical reaction by soils that causes
structural damage or defects in construction materials including
concrete, steel, and ductile or cast iron. Only work certified as
necessary by local building officials may be financed. No project
involving the dismantling of an existing building or structure and
its replacement by a new building or structure, nor the construction
of a new or substantially new building or structure may be financed
pursuant to this paragraph.

(2) Work on privately owned buildings and structures pursuant
to this subdivision, including reconstruction, repair, and abatement
of damage caused by soil deterioration, may only be financed by
a tax levy if all of the votes cast on the question of levying the tax
vote in favor of levying the tax. Any district created to finance the
work on privately owned buildings or structures, including
reconstruction, repair, and abatement of damage caused by soil
deterioration, shall consist only of lots or parcels on which the
legislative body finds that the buildings or structures to be worked
on pursuant to this subdivision suffer from soil deterioration.

(k) A district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible property,
whether privately or publicly owned, for the purposes of removal
or remedial action for the cleanup of any hazardous substance
released or threatened to be released into the environment. As used
in this subdivision, “remedial action” and “removal” shall have
the meaning set forth in Sections 25322 and 25323, respectively,
of the Health and Safety Code, and “hazardous substance” shall
have the meaning set forth in Section 25281 of the Health and
Safety Code.

(l) A district may also finance and refinance the acquisition,
installation, and improvement of energy efficiency, water
conservation, and renewable energy improvements that are affixed,
as specified in Section 660 of the Civil Code, to or on real property
and in buildings, whether the real property or buildings are
privately or publicly owned. Energy efficiency, water conservation,
and renewable energy improvements financed by a district may
only be installed on a privately owned building and on privately
owned real property with the prior written consent of the owner
or owners of the building or real property. This chapter shall not
be used to finance installation of energy efficiency, water
conservation, and renewable energy improvements on a privately
owned building or on privately owned real property in connection
with the initial construction of a residential building unless the
initial construction is undertaken by the intended owner or
occupant.

(m) Any improvement on private property authorized to be
financed by this section shall constitute a “public facility” for
purposes of this chapter and a “public improvement” for purposes
of Part 1 (commencing with Section 3100) and Part 2 (commencing
with Section 3110) of Division 4.5 of the Streets and Highways
Code, whether the improvement is owned by a private entity, if
the legislative body has determined that the improvement provides
a public benefit, or the improvement is owned by a public agency.

end delete