Amended in Assembly August 26, 2014

Amended in Assembly August 7, 2014

Amended in Assembly August 5, 2013

Amended in Assembly June 17, 2013

Amended in Senate May 14, 2013

Amended in Senate April 10, 2013

Amended in Senate April 2, 2013

Senate Bill No. 628

Introduced by begin delete Senator Beall end delete begin insert Senators Beall and Wolk end insert

begin insert

(Principal coauthors: Assembly Members Bonta, Dickinson, and John A. Pérez)

end insert

February 22, 2013

begin delete An act to add Section 1374.78 to the Health and Safety Code, relating to health care coverage. end delete begin insert An act to add Chapter 2.99 (commencing with Section 53398.50) to Part 1 of Division 2 of Title 5 of the Government Code, relating to local government. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 628, as amended, Beall. begin delete Health care coverage: mental health parity: medical surveys. end delete begin insert Enhanced infrastructure financing districts. end insert

begin insert

Existing law authorizes a legislative body of a city, defined to mean a city or a city and county, to establish an infrastructure financing district, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, to finance specified public facilities upon approval by 2⁄3 of the voters. Existing law authorizes an infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxing entities, as defined. Existing law requires an infrastructure financing plan to include the date on which an infrastructure financing district will cease to exist, that may not be more than 30 years from the date on which the ordinance forming the district is adopted.

end insert begin insert

This bill would additionally authorize the legislative body of a city or a county, defined to include a city and county, to establish an enhanced infrastructure financing district, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, upon approval by 55% of the voters; to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, brownfield restoration and other environmental mitigation; the development of projects on a former military base; the repayment of the transfer of funds to a military base reuse authority; the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase; the acquisition, construction, or repair of industrial structures for private use; transit priority projects; and projects to implement a sustainable communities strategy. The bill would also authorize an enhanced infrastructure financing district to utilize any powers under the Polanco Redevelopment Act.

end insert begin insert

This bill would require the legislative body to establish a public financing authority, defined as the governing board of the enhanced infrastructure financing authority, comprised of membership of members of the legislative body of the participating entities and of the public, prior to the adoption of a resolution to form an enhanced infrastructure district and infrastructure financing plan. This bill would require proceedings for the establishment of a district to be instituted by the adoption of a resolution of intention that, among other things, states the boundaries of the district, the type of public facilities and development proposed to be financed or assisted by the district, and the need for the district and the goals the district proposes to achieve.

end insert begin insert

If the resolution is adopted by the legislative body after a public hearing, the bill would prohibit the public financing authority from implementing the infrastructure financing plan until specified events occur. This bill would authorize the public financing authority to initiate proceedings to issue bonds, and would require the proposal to issue bonds to be submitted to qualified electors of the proposed district, as specified. By requiring electors to make specified declarations on ballots under penalty of perjury, this bill would expand circumstances under which a person may be convicted of a crime and thereby, would impose a state-mandated local program.

end insert begin insert

This bill would authorize an enhanced infrastructure financing district to fund infrastructure projects through tax increment financing, pursuant to the infrastructure financing plan and the agreement of affected taxing entities, as defined. This bill would authorize the creation of an infrastructure financing district for up to 45 years from the date on which the issuance of bonds is approved, as specified. This bill would require an infrastructure financing district to contract for the performance of an independent financial and performance audit every 2 years, as specified. This bill would authorize a city, county, or special district that contains territory within the boundaries of an infrastructure financing district, upon approval of its governing body, to loan moneys to the infrastructure financing district to fund the activities described in the infrastructure financing plan, as specified.

end insert begin insert

This bill would authorize an enhanced infrastructure financing district to finance a project or portion of a project that is located in, or overlaps with, a redevelopment project area or former redevelopment project area, as specified. This bill would prohibit a city or county that created a redevelopment agency from creating a district until specified conditions related to the wind down of the former redevelopment agency have been satisfied. This bill would provide that any debt or obligation of an enhanced infrastructure financing district is subordinate to an enforceable obligation of a former redevelopment agency. This bill would additionally authorize the legislative body of the city forming an enhanced infrastructure financing district to choose to dedicate any portion of its net available revenue, as defined, to the enhanced infrastructure financing district through the infrastructure financing plan, as specified.

end insert begin insert

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 no reimbursement is required by this act for a specified reason.

end insert begin delete

Existing law requires large group, small group, and individual health care service plan contracts to provide covered mental health and substance use disorder benefits in compliance with the provisions of federal law governing mental health parity, no later than January 1, 2015.

end delete begin delete

This bill, on and after January 1, 2016, would require the Department of Managed Health Care to conduct medical surveys of health care service plans chosen by the Director of the Department of Managed Health Care, as provided, in order to evaluate those plans’ compliance with the above requirements. The bill would require the surveys to be conducted annually for at least 5 years, and would require the department, from April 1, 2017, to April 1, 2021, inclusive, to provide the Legislature with an annual report on the survey findings, as provided. The bill would also require the department to hire 5 staff members prior to June 30, 2015, to implement these provisions, funded by moneys in the Managed Care Fund. The bill would require all actual reasonable costs incurred by the department for the purposes of the surveys to be paid from the annual assessments imposed on health care service plans.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. 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 Chapter 2.99 (commencing with Section 53398.50)
is added to Part 1 of Division 2 of Title 5 of the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

 

Chapter   begin insert 2.99. end insert Enhanced Infrastructure Financing
District

 

Article begin insert 1. end insert   General Provisions

 

begin insert 53398.50. end insert   

The Legislature finds and declares that with the
dissolution of redevelopment agencies, public benefits will accrue
if local agencies, excluding schools, are provided a means to
finance the reuse and revitalization of former military bases, fund
the creation of transit priority projects and the implementation of
sustainable communities plans, construct and rehabilitate
affordable housing units, and construct facilities to house providers
of consumer goods and services in the communities served by these
efforts.

begin insert 53398.51. end insert   

Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.

(a) “Affected taxing entity” means any governmental taxing
agency which 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) “County” means 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 or county engineer or
other appropriate official designated pursuant to Section 53398.62.

(e) (1) “District” means an enhanced infrastructure financing
district.

(2) An enhanced infrastructure financing district is a district
within the meaning of Section 1 of Article XIII A of the California
Constitution.

(f) “Enhanced infrastructure financing district” means a legally
constituted governmental entity separate and distinct from the city
or county that established it pursuant to this chapter for the sole
purpose of financing public facilities or other projects as
authorized by this chapter. An enhanced infrastructure financing
district shall be a local agency for purposes of Chapter 9
(commencing with Section 54950).

(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) “Public financing authority” means the governing board of
the district established pursuant to this chapter.

begin insert 53398.51.1. end insert   

(a) The public financing authority shall have a
membership consisting of one of the following, as appropriate:

(1) If a district has only one participating affected taxing entity,
the public financing authority’s membership shall consist of three
members of the legislative body of the participating entity, and
two members of the public chosen by the legislative body. The
appointment of the public members shall be subject to the
provisions of Section 54974.

(2) If a district has two or more participating affected taxing
entities, the public financing authority’s membership shall consist
of a majority of members from the legislative bodies of the
participating entities, and a minimum of two members of the public
chosen by the legislative bodies of the participating entities. The
appointment of the public members shall be subject to the
provisions of Section 54974.

(b) The legislative body shall ensure the public financing
authority is established prior to adopting a resolution pursuant to
Section 53398.69 to adopt an infrastructure financing plan and
to form a district.

(c)  Members of the public financing authority established
pursuant to this chapter shall not receive compensation but may
receive reimbursement for actual and necessary expenses incurred
in the performance of official duties pursuant to Article 2.3
(commencing with Section 53232) of Chapter 2.

(d)  Members of the public financing authority are subject to
Article 2.4 (commencing with Section 53234) of Chapter 2.

(e)  The public financing authority created pursuant to this
chapter shall be a local public agency subject to the Ralph M.
Brown Act (Chapter 9 (commencing with Section 54950)), the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1), and the Political Reform
Act of 1974 (Title 9 (commencing with Section 81000)).

begin insert 53398.52. end insert   

(a) (1) A district may finance any of the following:

(A) 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 that satisfies
the requirements of subdivision (b).

(B) The planning and design work that is directly related to the
purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 53398.56 and 53398.57.

(2) The facilities need not be physically located within the
boundaries of the district. However, any facilities financed outside
of a district must have a tangible connection to the work of the
district, as detailed in the infrastructure financing plan adopted
pursuant to Section 53398.69.

(3) A district may not finance routine maintenance, repair work,
or the costs of an ongoing operation or providing services of any
kind.

(b) The district shall finance only public capital facilities or
other specified projects of communitywide significance that provide
significant benefits to the district or the surrounding community,
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.

(9) Brownfield restoration and other environmental mitigation.

(10) The development of projects on a former military base,
provided that the projects are consistent with the military base
authority reuse plan and are approved by the military base reuse
authority, if applicable.

(11) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851 that occurred on or
after the creation of the district.

(12) The acquisition, construction, or rehabilitation of housing
for persons of low and moderate income, as defined in Section
50093 of the Health and Safety Code, for rent or purchase.

(13) Acquisition, construction, or repair of industrial structures
for private use.

(14) Transit priority projects, as defined in Section 21155 of
the Public Resources Code, that are located within a transit
priority project area. For purposes of this paragraph, a transit
priority project area may include a military base reuse plan that
meets the definition of a transit priority project area and it may
include a contaminated site within a transit priority project area.

(15) Projects that implement a sustainable communities strategy,
when the State Air Resources Board, pursuant to Chapter 2.5
(commencing with Section 65080) of Division 2 of Title 7, has
accepted a metropolitan planning organization’s determination
that the sustainable communities strategy or the alternative
planning strategy would, if implemented, achieve the greenhouse
gas emission reduction targets.

(c) The district shall require, by recorded covenants or
restrictions, that housing units built pursuant to this section shall
remain available at affordable housing costs to, and occupied by,
persons and families of low- or moderate-income households for
the longest feasible time, but for not less than 55 years for rental
units and 45 years for owner-occupied units.

(d) The district may finance mixed-income housing
developments, but may finance only those units in such a
development that are restricted to occupancy by persons of low
or moderate incomes as defined in Section 50093 of the Health
and Safety Code, and those on-site facilities for child care,
after-school care, and social services that are integrally linked to
the tenants of the restricted units.

(e) A district may utilize any powers under the Polanco
Redevelopment Act (Article 12.5 (commencing with Section 33459)
of Chapter 4 of Part 1 of Division 24 of the Health and Safety
Code), and finance any action necessary to implement that act.

begin insert 53398.53. end insert   

Notwithstanding subdivision (b) of Section 53398.52,
a district may reimburse a developer of a project that is located
entirely within the boundaries of that district for any permit
expenses incurred and to offset additional expenses incurred by
the developer in constructing affordable housing units pursuant
to the Transit Priority Project Program established in Section
65470.

begin insert 53398.54. end insert   

A city or county that created a redevelopment
agency, as defined in Section 33003 of the Health and Safety Code,
shall neither initiate the creation of a district, nor participate in
the governance or financing of a district, until each of the following
has occurred:

(a) The successor agency for the former redevelopment agency
created by the city or county has received a finding of completion,
as specified in Section 34179.7 of the Health and Safety Code.

(b) The city or county certifies to the Department of Finance
and to the public financing authority that no former redevelopment
agency assets that are the subject of litigation involving the state,
where the city or county, the successor agency, or the designated
local authority are a named plaintiff, have been or will be used to
benefit any efforts of an enhanced infrastructure financing district
formed under this chapter, unless the litigation and all possible
appeals have been resolved in a court of law. The city or county
shall provide this certification to the Department of Finance within
10 days of its legislative body’s action to participate in an
enhanced infrastructure financing district pursuant to Section
53398.68, or of its legislative body’s action to form an enhanced
infrastructure financing district pursuant to Section 53398.69.

(c) The office of the Controller has completed its review as
specified in Section 34167.5 of the Health and Safety Code.

(d) The successor agency and the entity that created the former
redevelopment agency have complied with all of the office of the
Controller’s findings and orders stemming from the reviews as
specified in subdivision (c).

begin insert 53398.55. end insert   

(a) A district may include any portion of a former
redevelopment project area that was previously created pursuant
to Part 1 (commencing with Section 33000) of Division 24 of the
Health and Safety Code, provided that the city or county that
created the former redevelopment agency has met the requirements
of Section 53398.54.

(b) A district may finance only the facilities authorized in this
chapter to the extent that the facilities are in addition to those
provided in the territory of the district before the district was
created. The additional facilities may not supplant facilities already
available within that territory when the district was created but
may supplement, rehabilitate, upgrade, or make more sustainable
those facilities.

(c) A district may include areas which are not contiguous.

begin insert 53398.56. end insert   

It is the intent of the Legislature that the creation
of the districts should not ordinarily lead to the removal of existing
dwelling units. If, however, any dwelling units are proposed to be
removed or destroyed in the course of private development or
public works construction within the area of the district, the
infrastructure financing plan adopted pursuant to Section 53398.69
shall contain provisions to do all of the following:

(a) Within two years of the removal or destruction, cause or
require the construction or rehabilitation, for rent or sale to
persons or families of low or moderate income, of an equal number
of replacement dwelling units at affordable housing cost, as defined
in Section 50052.5 of the Health and Safety Code, within the
territory of the district if the dwelling units removed were inhabited
by persons or families of low or moderate income, as defined in
Section 50093 of the Health and Safety Code.

(b) Within two years of the removal or destruction, cause or
require the construction or rehabilitation, for rent or sale to
persons of low or moderate income, a number of dwelling units
that is at least one unit but not less than 25 percent of the total
dwelling units removed at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in
Section 50093 of the Health and Safety Code.

(c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of
Division 7 of Title 1, to persons displaced by any public or private
development occurring within the territory of the district. This
displacement shall be deemed to be the result of public action.

(d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not
take place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families
were displaced, available and ready for occupancy by the residents
of the units at the time of their displacement. The housing units
shall be suitable to the needs of these displaced persons or families,
and shall be decent, safe, sanitary, and otherwise standard
dwellings.

(e) (1) The district shall require, by recorded covenants or
restrictions, that housing units built pursuant to this section shall
remain available at affordable housing costs to, and occupied by,
persons and families of low- or moderate-income households for
the longest feasible time, but for not less than 55 years for rental
units and 45 years for owner-occupied units.

(2) In lieu of a 45-year covenant or restriction, the district may
subject owner-occupied units to an equity sharing agreement
described in paragraph (2) of subdivision (c) of Section 65915.

begin insert 53398.57. end insert   

Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder, or an election pursuant to this chapter shall be
commenced within 30 days after the enactment of the resolution
creating the district pursuant to Section 53398.69. Consistent with
the time limitations of this section, such an action or proceeding
with respect to a division of taxes under this chapter may be
brought pursuant to Chapter 9 (commencing with Section 860) of
Title 10 of Part 2 of the Code of Civil Procedure, except that
Section 869 of the Code of Civil Procedure shall not apply.

begin insert 53398.58. end insert   

An action to determine the validity of the issuance
of bonds pursuant to this chapter may be brought pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of
the Code of Civil Procedure. However, notwithstanding the time
limits specified in Section 860 of the Code of Civil Procedure, the
action shall be commenced within 30 days after adoption of the
resolution pursuant to Section 53398.81 providing for issuance of
the bonds if the action is brought by an interested person pursuant
to Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within
30 days after entry of judgment.

 

Article begin insert 2. end insert   Preparation and Adoption of Infrastructure Financing
Plan

 

begin insert 53398.59. end insert   

A legislative body of a city or county may designate
one or more proposed enhanced 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 enhanced 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 or in the office of the recorder of the county, as
applicable.

(b) State the type of public facilities and development proposed
to be financed or assisted by the district in accordance with Section
53398.52.

(c) State the need for the district and the goals the district
proposes to achieve.

(d) State that incremental property tax revenue from the city or
county and some or all affected taxing entities within the district,
if approved by resolution pursuant to Section 53398.68, may be
used to finance these activities.

(e) Fix a time and place for a public hearing on the proposal.

begin insert 53398.60. end insert   

The legislative body shall direct the city clerk or
county recorder, as applicable, to mail a copy of the resolution of
intention to create the district to each owner of land within the
district.

begin insert 53398.61. end insert   

The legislative body shall direct the city clerk or
county recorder, as applicable, to mail a copy of the resolution to
each affected taxing entity.

begin insert 53398.62. end insert   

After adopting the resolution pursuant to Section
53398.59, the legislative body shall designate and direct the city
or county engineer or other appropriate official to prepare an
infrastructure plan pursuant to Section 53398.63.

begin insert 53398.63. end insert   

After receipt of a copy of the resolution of intention
to establish a district, the official designated pursuant to Section
53395.62 shall prepare a proposed infrastructure financing plan.
The infrastructure financing plan shall be consistent with the
general plan of the city or county 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 and other forms of
development or financial assistance that is 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 development and financial
assistance.

(c) If funding from affected taxing entities is incorporated into
the financing plan, a finding that the development and financial
assistance are of communitywide significance and 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 or county 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 that 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 45 years from the date on which the issuance of
bonds is approved pursuant to subdivision (a) of Section 53398.81,
or the issuance of a loan is approved by the governing board of a
local agency pursuant to Section 53398.87.

(6) An analysis of the costs to the city or county 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 or county 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.

(8) A plan for financing any potential costs that may be incurred
by reimbursing a developer of a project that is both located entirely
within the boundaries of that district and qualifies for the Transit
Priority Project Program, pursuant to Section 65470, including
any permit and affordable housing expenses related to the project.

(e) If any dwelling units occupied by persons or families 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 53398.56.

(f) The goals the district proposes to achieve for each project
financed pursuant to Section 53398.52.

begin insert 53398.64. end insert   

The infrastructure financing plan shall be sent to
each owner of land within the proposed district and to each
affected taxing entity together with any report required by the
California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code) that pertains
to the proposed public facilities or the proposed development
project for which the public facilities are needed, and shall be
made available for public inspection. The report shall also be sent
to the planning commission and the legislative body.

begin insert 53398.65. end insert   

The designated official shall consult with each
affected taxing entity, and, at the request of any affected taxing
entity, shall meet with representatives of an affected taxing entity.
Any affected taxing entity may suggest revisions to the plan.

begin insert 53398.66. end insert   

The legislative body shall conduct a public hearing
prior to adopting the proposed infrastructure financing plan. The
public hearing shall be called no sooner than 60 days after the
plan has been sent to each affected taxing entity. In addition to
the notice given to landowners and affected taxing entities pursuant
to Sections 53398.60 and 53398.61, notice of the public hearing
shall be given by publication not less than once a week for four
successive weeks in a newspaper of general circulation published
in the city or county in which the proposed district is located. The
notice shall state that the district will be used to finance public
facilities or development, briefly describe the public facilities or
development, briefly describe the proposed financial arrangements,
including the proposed commitment of incremental tax revenue,
describe the boundaries of the proposed district and state the day,
hour, and place when and where any persons having any objections
to the proposed infrastructure financing plan, or the regularity of
any of the prior proceedings, may appear before the legislative
body and object to the adoption of the proposed plan by the
legislative body.

begin insert 53398.67. end insert   

At the hour set in the required notices, the legislative
body shall proceed to hear and pass upon all written and oral
objections. The hearing may be continued from time to time. The
legislative body shall consider the recommendations, if any, of
affected taxing entities, and all evidence and testimony for and
against the adoption of the plan. The legislative body may modify
the plan by eliminating or reducing the size and cost of proposed
facilities or development, by reducing the amount of proposed
debt, or by reducing the portion, amount, or duration of
incremental tax revenues to be committed to the district.

begin insert 53398.68. end insert   

(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 53398.75) 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 53398.75) and
has been filed with the legislative body at or prior to the time of
the hearing.

(b) 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 enhanced
infrastructure financing district without allocation of the tax
revenues of any affected taxing entity that has not approved the
infrastructure financing plan by resolution of the governing body
of the affected taxing entity.

begin insert 53398.69. end insert   

(a) At the conclusion of the hearing, the legislative
body may adopt a resolution proposing adoption of the
infrastructure financing plan, as modified, and formation of the
enhanced infrastructure financing district in a manner consistent
with Section 53398.68, or it may abandon the proceedings.

(b) The infrastructure financing plan and the formation of the
enhanced infrastructure financing district shall take effect upon
the legislative body’s adoption of the resolution. The infrastructure
financing plan shall specify if the district shall be funded solely
through the district’s share of tax increment, governmental or
private loans, grants, bonds, assessments, fees, or some
combination thereof. However, the public financing authority may
not issue bonds or levy assessments or fees that may be included
in the infrastructure financing plan prior to one or more of the
following:

(1) An affirmative vote, pursuant to subdivision (a) of Section
53398.81, to issue bonds to finance the infrastructure financing
plan.

(2) Without compliance with the procedures required in
subdivision (f) of Section 53398.75, to levy assessments or fees to
finance the infrastructure financing plan.

(c) In addition the district may expend up to 10 percent of any
accrued tax increment in the first two years of the effective date
of the enhanced infrastructure financing district on planning and
dissemination of information to the residents within the district’s
boundaries about the infrastructure financing plan and planned
activities to be funded by the district.

begin insert 53398.70. end insert   

(a) Except as otherwise provided in this chapter,
the provisions of law regulating elections of the local agency that
calls an election pursuant to this chapter, insofar as they may be
applicable, shall govern all elections conducted pursuant to this
chapter. Except as provided in subdivision (b), there shall be
prepared and included in the ballot material provided to each
voter, an impartial analysis pursuant to Section 9160 or 9280 of
the Elections Code, arguments and rebuttals, if any, pursuant to
Sections 9162 to 9167, inclusive, and Section 9190 of the Elections
Code or pursuant to Sections 9281 to 9287, inclusive, and Section
9295 of the Elections Code.

(b) If the vote is to be by the landowners of the proposed district,
analysis and arguments may be waived with the unanimous consent
of all the landowners and shall be so stated in the order for the
election.

begin insert 53398.71. end insert   

(a) If the election is to be conducted by mail ballot,
the election official conducting the election shall provide ballots
and election materials pursuant to subdivision (d) of Section 53326
and Section 53327, together with all supplies and instructions
necessary for the use and return of the ballot.

(b) The identification envelope for return of mail ballots used
in landowner elections shall contain the following:

(1) The name of the landowner.

(2) The address of the landowner.

(3) A declaration, under penalty of perjury, stating that the voter
is the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears
on the identification envelope.

(4) The printed name and signature of the voter.

(5) The address of the voter.

(6) The date of signing and place of execution of the declaration
pursuant to paragraph (3).

(7) A notice that the envelope contains an official ballot and is
to be opened only by the canvassing board.

begin insert 53398.74. end insert   

The public financing authority may submit a
proposition to establish or change the appropriations limit, as
defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, of a district to the qualified electors of a
proposed or established district. The proposition establishing or
changing the appropriations limit shall become effective if
approved by the qualified electors voting on the proposition and
shall be adjusted for changes in the cost of living and changes in
populations, as defined by subdivisions (b) and (c) of Section 7901,
except that the change in population may be estimated by the
legislative body in the absence of an estimate by the Department
of Finance, and in accordance with Section 1 of Article XIII B of
the California Constitution. For purposes of adjusting for changes
in population, the population of the district shall be deemed to be
at least one person during each calendar year. Any election held
pursuant to this section may be combined with any election held
pursuant to Section 53398.80 in any convenient manner.

 

Article begin insert 3. end insert   Division of Taxes

 

begin insert 53398.75. end insert   

(a) Any infrastructure financing plan may contain
a provision that taxes, if any, levied upon taxable property in the
area included within the enhanced 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 53398.69 to create the district, shall
be divided as follows:

(1) That portion of the taxes that 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 53398.69 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.

(2) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city or county and
each affected taxing entity that has agreed to participate pursuant
to Section 53398.68 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.

(b) Notwithstanding subdivision (a), where any district
boundaries overlap with the boundaries of any former
redevelopment project area, any debt or obligation of a district
shall be subordinate to any and all enforceable obligations of the
former redevelopment agency, as approved by the Oversight Board
and the Department of Finance. For the purposes of this chapter,
the division of taxes allocated to the district pursuant to subdivision
(a) of this section or of subdivision (b) of Section 53396 shall not
include any taxes required to be deposited by the county
auditor-controller into the Redevelopment Property Tax Trust
Fund created pursuant to subdivision (b) of Section 34170.5 of
the Health and Safety Code.

(c) The legislative body of the city or county forming the district
may choose to dedicate any portion of its net available revenue to
the district through the financing plan described in Section
53398.63.

(d) For the purposes of this section, “net available revenue”
means periodic distributions to the city or county from the
Redevelopment Property Tax Trust Fund, created pursuant to
Section 34170.5 of the Health and Safety Code, that are available
to the city or county after all preexisting legal commitments and
statutory obligations funded from that revenue are made pursuant
to Part 1.85 (commencing with Section 34170) of Division 24 of
the Health and Safety Code. “Net available revenue” shall not
include any funds deposited by the county auditor-controller into
the Redevelopment Property Tax Trust Fund or funds remaining
in the Redevelopment Property Tax Trust Fund prior to
distribution. Net available revenues shall not include any moneys
payable to a school district that maintains kindergarten and grades
1 to 12, inclusive, community college districts, county office of
education, or to the Educational Revenue Augmentation Fund,
pursuant to paragraph (4) of subdivision (a) of Section 34183 of
the Health and Safety Code.

(e) (1) That portion of any ad valorem property tax revenue
annually allocated to a city or county pursuant to Section 97.70
of the Revenue and Taxation Code that is specified in the adopted
infrastructure financing plan for the city or county that has agreed
to participate pursuant to Section 53398.68, and that corresponds
to the increase in the assessed valuation of taxable property shall
be allocated to, and when collected shall be apportioned to a
special fund of the district for all lawful purposes of the district.

(2) When the district ceases to exist pursuant to the adopted
infrastructure financing plan, the revenues described in this
subdivision shall be allocated to, and when collected, shall be
apportioned to the respective city or county.

(f) This section shall not be construed to prevent a district from
utilizing revenues from any of the following sources to support its
activities provided that the applicable voter approval has been
obtained, and the infrastructure financing plan has been approved
pursuant to Section 53398.69:

(1) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).

(2) The Municipal Improvement Act of 1913 (Division 12
(commencing with Section 10000) of the Streets and Highways
Code).

(3) The Improvement Bond Act of 1915 (Division 10
(commencing with Section 8500) of the Streets and Highways
Code).

(4) The Landscaping and Lighting Act of 1972 (Part 2
(commencing with Section 22500) of Division 15 of the Streets
and Highways Code).

(5) The Vehicle Parking District Law of 1943 (Part 1
(commencing with Section 31500) of Division 18 of the Streets
and Highways Code).

(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division 18 of the Streets and Highways Code).

(7) The Park and Playground Act of 1909 (Chapter 7
(commencing with Section 38000) of Part 2 of Division 3 of Title
4 of this code).

(8) The Mello-Roos Community Facilities Act of 1982 (Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of
this title).

(9) The Benefit Assessment Act of 1982 (Chapter 6.4
(commencing with Section 54703) of Part 1 of Division 2 of this
title).

(10) The so-called facilities benefit assessment levied by the
charter city of San Diego or any substantially similar assessment
levied for the same purpose by any other charter city pursuant to
any ordinance or charter provision.

begin insert 53398.76. end insert   

All costs incurred by a county in connection with
the division of taxes pursuant to Section 53398.75 for a district
shall be paid by that district.

 

Article begin insert 4. end insert   Tax Increment Bonds

 

begin insert 53398.77. end insert   

The public financing authority may, by majority
vote, initiate proceedings to issue bonds pursuant to this chapter
by adopting a resolution stating its intent to issue the bonds.

begin insert 53398.78. end insert   

The resolution adopted pursuant to Section 53398.77
shall contain all of the following information:

(a) A description of the facilities or developments to be financed
with the proceeds of the proposed bond issue.

(b) The estimated cost of the facilities or developments, the
estimated cost of preparing and issuing the bonds, and the
principal amount of the proposed bond issuance.

(c) The maximum interest rate and discount on the proposed
bond issuance.

(d) The date of the election on the proposed bond issuance and
the manner of holding the election.

(e) 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.

(f) A finding that the amount necessary to pay the principal of,
and interest on, the proposed bond issuance will be less than, or
equal to, the amount determined pursuant to subdivision (e).

begin insert 53398.79. end insert   

The clerk of the public financing authority shall
publish the resolution adopted pursuant to Section 53398.77 once
a day for at least seven successive days in a newspaper published
in the city or county at least six days a week, or at least once a
week for two successive weeks in a newspaper published in the
city or county less than six days a week.

If there are no newspapers meeting these criteria, the resolution
shall be posted in three public places within the territory of the
district for two succeeding weeks.

begin insert 53398.80. end insert   

(a) The public financing authority shall submit the
proposal to issue the bonds to the voters who reside within the
district. If the public financing authority adopts a resolution
proposing initiation of proceedings to issue bonds pursuant to
Section 53398.77, it shall then submit that proposal, together with
the information specified in subdivisions (a) to (c), inclusive, of
Section 53398.78, to the qualified electors of the district in the
next general election or in a special election to be held,
notwithstanding any other requirement, including any requirement
that elections be held on specified dates, contained in the Elections
Code, at least 90 days but not more than 180 days following the
adoption of the resolution of bond issuance. The public financing
authority shall provide the resolution of bond issuance, a certified
map of sufficient scale and clarity to show the boundaries of the
district, and a sufficient description to allow the election official
to determine the boundaries of the district to the official conducting
the election within three business days after the adoption of the
resolution of bond issuance. The assessor’s parcel numbers for
the land within the district shall be included if it is a landowner
election or the district does not conform to an existing district’s
boundaries and if requested by the official conducting the election.
If the election is to be held less than 125 days following the
adoption of the resolution of bond issuance, the concurrence of
the election official conducting the election shall be required.
However, any time limit specified by this section or requirement
pertaining to the conduct of the election may be waived with the
unanimous consent of the qualified electors of the proposed district
and the concurrence of the election official conducting the election.

(b) If at least 12 persons have been registered to vote within
the territory of the district for each of the 90 days preceding the
close of the hearing, the vote shall be by the registered voters of
the district, who need not necessarily be the same persons, with
each voter having one vote. Otherwise, the vote shall be by the
landowners of the district and each landowner who is the owner
of record at the close of the protest hearing, or the authorized
representative thereof, shall have one vote for each acre or portion
of an acre of land that he or she owns within the district. The
number of votes to be voted by a particular landowner shall be
specified on the ballot provided to that landowner.

(c) Ballots for the special election authorized by subdivision
(a) may be distributed to qualified electors by mail with return
postage prepaid or by personal service by the election official.
The official conducting the election may certify the proper mailing
of ballots by an affidavit, which shall be exclusive proof of mailing
in the absence of fraud. The voted ballots shall be returned to the
election officer conducting the election not later than the hour
specified in the resolution calling the election. However, if all the
qualified voters have voted, the election shall be closed.

begin insert 53398.81. end insert   

(a) The bonds may be issued if 55 percent of the
voters voting on the proposition vote in favor of issuing the bonds.

(b) If the voters approve the issuance of the bonds as provided
by subdivision (a), the public financing authority shall proceed
with the issuance of the bonds by adopting a resolution that shall
provide for all of the following:

(1) The issuance of the bonds in one or more series.

(2) The principal amount of the bonds that shall be consistent
with the amount specified in subdivision (b) of Section 53398.78.

(3) The date the bonds will bear.

(4) The date of maturity of the bonds.

(5) The denomination of the bonds.

(6) The form of the bonds.

(7) The manner of execution of the bonds.

(8) The medium of payment in which the bonds are payable.

(9) The place or manner of payment and any requirements for
registration of the bonds.

(10) The terms of call or redemption, with or without premium.

begin insert 53398.82. end insert   

If any proposition submitted to the voters pursuant
to this chapter is defeated by the voters, the public financing
authority shall not submit, or cause to be submitted, a similar
proposition to the voters for at least one year after the first election.

begin insert 53398.83. end insert   

The public financing authority may, by majority
vote, provide for refunding of bonds issued pursuant to this chapter.
However, refunding bonds shall not be issued if the total net
interest cost to maturity on the refunding bonds plus the principal
amount of the refunding bonds exceeds the total net interest cost
to maturity on the bonds to be refunded. The public financing
authority may not extend the time to maturity of the bonds.

begin insert 53398.84. end insert   

The public financing authority or any person
executing the bonds shall not be personally liable on the bonds by
reason of their issuance. The bonds and other obligations of a
district issued pursuant to this chapter are not a debt of the city,
county, or state or of any of its political subdivisions, other than
the district, and none of those entities, other than the district, shall
be liable on the bonds and the bonds or obligations shall be
payable exclusively from funds or properties of the district. The
bonds shall contain a statement to this effect on their face. The
bonds do not constitute an indebtedness within the meaning of any
constitutional or statutory debt limitation.

begin insert 53398.85. end insert   

The bonds may be sold at discount not to exceed 5
percent of par at public sale. At least five days prior to the sale,
notice shall be published, pursuant to Section 6061, in a newspaper
of general circulation and in a financial newspaper published in
the City and County of San Francisco and in the City of Los
Angeles. The bonds may be sold at not less than par to the federal
government at private sale without any public advertisement.

begin insert 53398.86. end insert   

If any member of the public financing authority
whose signature appears on bonds ceases to be a member of the
public financing authority before delivery of the bonds, his or her
signature is as effective as if he or she had remained in office.
Bonds issued pursuant to this chapter are fully negotiable.

begin insert 53398.87. end insert   

Upon the approval of its governing board, a city,
county, or special district that contains territory within the
boundaries of a district, may loan moneys to the district to fund
those activities described in the infrastructure financing plan
approved and adopted pursuant to Section 53398.69. Moneys
loaned pursuant to this provision may be repaid at an interest rate
that does not exceed the Local Agency Investment Fund rate that
is in effect on the date that the loan is approved by the governing
board. Notwithstanding any other provision of law it is the intent
of the Legislature that any loan issued to a public financing
authority by a governmental entity shall be repaid fully unless
agreed to otherwise between the authority and the governmental
entity.

begin insert 53398.88. end insert   

(a) Every two years after the issuance of debt
pursuant to Section 53398.81, the district shall contract for an
independent financial and performance audit. The audit shall be
conducted according to guidelines established by the Controller.
A copy of the completed audit shall be provided to the Controller,
the Director of Finance, and to the Joint Legislative Budget
Committee.

(b) Upon the request of the Governor or of the Legislature, the
Bureau of State Audits shall be authorized to conduct financial
and performance audits of districts. The results of the audits shall
be provided to the district, the Controller, the Director of Finance,
and the Joint Legislative Budget Committee.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

Section 1374.78 is added to the Health and Safety
Code, immediately following Section 1374.76, to read:

1374.78.  

(a) (1) On and after January 1, 2016, consistent with
Section 1380, the Department of Managed Health Care shall
conduct medical surveys of health care service plans to evaluate
those plans’ compliance with Section 1374.76. The surveys shall
be conducted annually for at least five years.

(2) The director shall determine no fewer than seven of the
largest health care service plans to be surveyed each year
representing no fewer than 80 percent of covered lives among any
of the plans subject to the requirements of Section 1374.76.

(b) (1) From April 1, 2017, to April 1, 2021, inclusive, the
department shall provide the Legislature with an annual report on
the survey findings, including analysis of health care service plan
compliance with timely access to services and compliance with
cost-sharing and treatment requirements of state and federal mental
health parity laws and all rules, regulations, and guidance issued
thereunder.

(2) The requirement for submitting a report imposed under this
subdivision is inoperative on April 2, 2021, pursuant to Section
10231.5 of the Government Code.

(3) The report to be submitted pursuant to this subdivision shall
be submitted in compliance with Section 9795 of the Government
Code.

(c) Notwithstanding any other law, the department shall hire
five staff members, prior to June 30, 2015, to implement this
section, funded through the Managed Care Fund.

(d) All actual reasonable costs incurred by the department for
the purposes of the surveys of health care service plan compliance
with Section 1374.76 shall be paid from the annual plan
assessments imposed pursuant to subdivision (b) of Section 1356.

end delete