Amended in Assembly June 9, 2014

Amended in Assembly August 6, 2013

Amended in Assembly June 4, 2013

Senate Bill No. 614

Introduced by Senator Wolk

February 22, 2013

An act to amend Section begin delete 21100 of the Water Code, relating to water. end delete begin insert 56653 of the Government Code, and to add Section 99.3 to the Revenue and Taxation Code, relating to local government. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 614, as amended, Wolk. begin delete Irrigation districts: directors. end delete begin insert Local government: jurisdictional changes: infrastructure financing. end insert

begin insert

Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, provides the authority and procedures for the initiation, conduct, and completion of changes of organization and reorganization of cities and districts. The act requires a local agency or school district that initiates proceedings for a change of local government organization or reorganization by submitting a resolution of application to a local agency formation commission to also submit a plan for providing services within the affected territory, as specified.

end insert begin insert

This bill would instead require, if a proposal for a change of organization or reorganization is submitted to a local commission, that the applicant submit a plan for providing services within the affected territory. The bill would, in the case of a change of organization that includes a disadvantaged, unincorporated community, authorize a local agency to include in its resolution of application a plan to improve or upgrade structures, roads, sewer or water facilities, or other infrastructure to serve the disadvantaged, unincorporated community and would authorize the local commission to amend the proposal to include the formation of a special district, as specified.

end insert begin insert

Existing law requires a county auditor, in the case of a jurisdictional change caused by the formation of a district, to adjust the allocation of property tax revenue pursuant to the agreement of, for local agencies whose service area or service responsibility would be altered by the jurisdictional change, as specified.

end insert begin insert

This bill would authorize a local agency that files a petition for change of organization, and one or more other local agencies that will improve or upgrade structures to serve a disadvantaged, unincorporated community, to agree on a plan for financing services and structures that may provide that taxes, levied upon taxable property in the area included within the territory each year by or for the benefit of the local agency and one or more other local agencies that consent to the plan, be divided between the respective affected local agencies and the special district. This bill would require the plan to include a date on which that division of taxes shall terminate, and would allow the plan to provide for the issuance of indebtedness, as specified. The bill would prohibit any plan developed under these provisions from resulting in a reduction of property tax revenues to school entities.

end insert begin delete

Existing law, the Irrigation District Law, with certain exceptions, requires a director elected at a formation election to be a resident, landowner, and voter in the proposed district at the time of his or her nomination and a resident of the division that he or she represents during his or her entire term. Existing law, with certain exceptions, requires a director of the board of an irrigation district to be a voter and, unless exempted under certain circumstances, a landowner in the district and a resident of the division that the director represents at the time of his or her nomination or appointment and during the director’s entire term.

end delete begin delete

This bill would eliminate the circumstances in which a director of the board of an irrigation district may be exempt from the landownership requirement.

end delete begin delete

Existing law requires a director on the board of an irrigation district that provides retail electricity for residents of the district to be a voter of the district and a resident of the division that the director represents at the time of his or her nomination or appointment and during his or her entire term. Existing law requires a director elected at a formation election to be a resident in the proposed district at the time of his or her nomination and a resident of the division that he or she represents during his or her entire term.

end delete begin delete

This bill would apply these requirements to a director on the board of an irrigation district receiving a majority of its operating and nonoperating revenue from sources other than irrigation water sales, standby or availability charges, service type assessments, and property assessments, reported as specified.

end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert It is the intent of the Legislature to provide
additional options for financing infrastructure that can be
incorporated into the approval of an annexation of a
disadvantaged, unincorporated community. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 56653 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

56653.  

(a)  begin delete Whenever a local agency or school district submits
a resolution of application end delete begin insert If a proposal end insert for a change of
organization or reorganization begin insert is submitted end insert pursuant to this part,
the begin delete local agency shall submit with the resolution of application end delete
begin insert applicant shall submit end insert a plan for providing services within the
affected territory.

(b) The plan for providing services shall include all of the
following information and any additional information required by
the commission or the executive officer:

(1) An enumeration and description of the services to be
extended to the affected territory.

(2) The level and range of those services.

(3) An indication of when those services can feasibly be
extended to the affected territory.

(4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local agency
would impose or require within the affected territory if the change
of organization or reorganization is completed.

(5) Information with respect to how those services will be
financed.

begin insert

(c) Only in the case of a change of organization or
reorganization that includes a disadvantaged, unincorporated
community as defined in Section 56033.5:

end insert begin insert

(1) A local agency may include in its resolution of application
for change of organization or reorganization a plan adopted
pursuant to Section 99.3 of the Revenue and Taxation Code to
improve or upgrade structures, roads, sewer or water facilities,
or other infrastructure to serve the disadvantaged, unincorporated
community through the formation of a special district.

end insert begin insert

(2) If a local agency includes a plan pursuant to paragraph (1),
a commission may, subject to paragraph (3), amend the petition
for a change of organization or reorganization to include the
formation of a special district, including, but not limited to, a
community services district, municipal water district, or sanitary
district, to provide financing to improve or upgrade structures,
roads, sewer or water facilities, or other infrastructure to serve
the disadvantaged, unincorporated community, in conformity with
the requirements of the principal act of the district proposed to be
formed.

end insert begin insert

(3) Consistent with paragraph (3) of subdivision (a) of Section
56375, a commission may initiate the formation of a special district
only if a request to form a special district is made by a local agency
pursuant to paragraph (1).

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 99.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 99.3. end insert   

(a) The plan for financing services that is included in a
petition for change of organization or reorganization filed by a
local agency pursuant to Section 56653 of the Government Code
for a disadvantaged, unincorporated community may include a
plan adopted pursuant to this section.

(b) For purposes of this section, the following definitions apply:

(1) “Local agency” means a local agency as defined by
subdivision (a) of Section 95, and does not include any school
entity as defined in subdivision (f) of Section 95.

(2) “Affected local agency” means a local agency that has
adopted a resolution of its governing board consenting to the plan
developed pursuant to this section.

(3) “Territory” means all or part of the land that is included
in the petition for change of organization or reorganization filed
by the local agency.

(4) “Certificate of completion” is defined as provided in Section
56020.5 of the Government Code.

(5) “Disadvantaged, unincorporated community” is defined as
provided in Section 56033.5 of the Government Code.

(c) A local agency that files a petition for change of organization
or reorganization, and one or more other local agencies that will
improve or upgrade structures to serve a disadvantaged,
unincorporated community subject to that petition, may agree on
a plan for financing services and structures pursuant to this
section.

(d) The plan agreed upon pursuant to subdivision (c) may
contain a provision that taxes levied upon taxable property in the
area included within the territory each year by or for the benefit
of the local agency and one or more other local agencies that
consent to the plan, be divided as follows:

(1) That portion of the taxes that would have been produced by
the rate upon which the tax is levied each year by or for each of
the affected local agencies upon the total sum of the assessed value
of the taxable property in the territory as shown upon the
assessment roll used in connection with the taxation of the property
by the affected local agency, last equalized prior to the effective
date of the certification of completion, and that portion of taxes
by or for each school entity, shall be allocated to, and when
collected shall be paid to, the respective affected local agencies
and school entities as taxes by or for the affected local agencies
and school entities on all property are paid.

(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity that has agreed to participate pursuant to this section,
in excess of the amount specified in paragraph (1), shall be
allocated to, and when collected shall be paid into a special fund
of a special district formed pursuant to subdivision (c) of Section
56653 of the Government Code that will finance the infrastructure
improvements to serve the disadvantaged, unincorporated
community.

(e) A plan adopted pursuant to this section shall specify a date
upon which the division of taxes described in subdivision (d) shall
terminate.

(f) A plan adopted pursuant to this section may include a
provision for the issuance of indebtedness. Any indebtedness shall
be issued in conformity with Articles 4.5 (commencing with Section
53506) and 5 (commencing with Section 53510) of Chapter 3 of
Part 1 of Division 2 of Title 5 of the Government Code or the
principal act of the special district.

(g) Any plan adopted under this section shall not result in a
reduction of property tax revenues allocated to any school entity
as defined in subdivision (f) of Section 95.

end insert

begin delete

SECTION 1.  

Section 21100 of the Water Code is amended to
read:

21100.  

(a) Each director, except as provided in subdivision
(c) or (d) or otherwise provided in this division, shall be a voter
and a landowner in the district and a resident of the division that
he or she represents at the time of his or her nomination or
appointment and through his or her entire term, except in the case
of the director elected at a formation election. A director elected
at a formation election shall be a resident, landowner, and voter
in the proposed district at the time of his or her nomination and a
resident of the division that he or she represents during his or her
entire term.

(b) In any district having no more than 15 landowners who are
voters in the district, a person need not be a voter but shall be
qualified to be a director of the district if he or she is a landowner
of the district at the time of his or her nomination or appointment
and during his or her entire term.

(c) In a district that provides retail electricity for residents of
the district, each director, except as otherwise provided in this
division, shall be a voter of the district and a resident of the division
that he or she represents at the time of his or her nomination or
appointment and during his or her entire term, except in the case
of a director elected at a formation election. A director elected at
a formation election shall be a resident in the proposed district at
the time of his or her nomination and a resident of the division that
he or she represents during his or her entire term.

(d) In a district receiving a majority of its operating and
nonoperating revenue from sources other than irrigation water
sales, standby or availability charges, service type assessments,
and property assessments, as reported in the most recent Special
Districts Annual Report issued by the Controller, each director,
except as otherwise provided in this division, shall be a voter of
the district and a resident of the division that he or she represents
at the time of his or her nomination or appointment and during his
or her entire term, except in the case of a director elected at a
formation election. A director elected at a formation election shall
be a resident in the proposed district at the time of his or her
nomination and a resident of the division that he or she represents
during his or her entire term.

end delete