California Senate Bill SB214 Introduced / Bill

 BILL NUMBER: SB 214INTRODUCED BILL TEXT INTRODUCED BY Senator Wolk FEBRUARY 8, 2011 An act to amend Sections 53395.5, 53395.6, 53395.7, 53395.14, 53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, and to repeal Sections 53395.21, 53395.22, 53395.23, 53395.24, 53395.25, 53397.4, 53397.5, 53397.6, and 53397.7 of, the Government Code, relating to infrastructure financing districts. LEGISLATIVE COUNSEL'S DIGEST SB 214, as introduced, Wolk. Infrastructure financing districts: voter approval: repeal. (1) Existing law authorizes a legislative body, as defined, to create 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 voter approval. This bill would eliminate the requirement of voter approval and authorize the legislative body to create the district, adopt the plan, and issue the bonds by resolutions. (2) Existing law requires that an infrastructure financing plan created by a legislative body to include a date on which the district will cease to exist, which shall not be more than 30 years from the date on which the ordinance forming the district is adopted. This bill instead would specify that the date on which the district would cease to exist would not be more than 40 years from the date on which the legislative body adopted the resolution adopting the infrastructure financing plan. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 53395.5 of the Government Code is amended to read: 53395.5. It is the intent of the Legislature that  the area of the districts created be substantially undeveloped, and  the establishment of a district 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 legislative body shall do all of the following: (a) Within four years of the removal or destruction, cause or require the construction or rehabilitation, for rental 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 four years of the removal or destruction, cause or require the construction or rehabilitation, for rental or sale to persons of low or moderate income, a number of dwelling units which is at least one unit but not less than 20 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. SEC. 2. Section 53395.6 of the Government Code is amended to read: 53395.6. 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 ordinance creating the district pursuant to Section 53395.23   date the legislative body adopted the resolution adopting the infrastructure finance plan pursuant to Section 53395.20  . 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. SEC. 3. Section 53395.7 of the Government Code is amended to read: 53395.7. 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 53397.6 providing for issuance of the bonds   the date the legislative body adopted the resolution authorizing the issuance of the bonds pursuant to Section 53397.1,  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. SEC. 4. Section 53395.14 of the Government Code is amended to read: 53395.14. After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53395.13 shall prepare a proposed infrastructure financing plan. The infrastructure financing plan shall be consistent with the general plan of the city within which the district is located and shall include all of the following: (a) A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention. (b) A description of the public facilities required to serve the development proposed in the area of the district including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities. (c) A finding that the public facilities 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 and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time. (2) A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. (3) A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt. (4) A limit on the total number of dollars of taxes which may be allocated to the district pursuant to the plan. (5) A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than  30   40  years from the date  on which the ordinance forming the district is adopted pursuant to Section 53395.23   the legislative body adopted the resolution adopting the infrastructure finance plan pursuant to Section 53395.20 . (6) An analysis of the costs to the city of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city as a result of expected development in the area of the district. (7) An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity. (e) If any dwelling units occupied by persons or families of low or moderate income are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53395.5. SEC. 5. Section 53395.19 of the Government Code is amended to read: 53395.19. (a) The legislative body shall not enact a resolution  proposing formation of   forming  a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53396) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity which is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53396) has been filed with the legislative body at or prior to the time of the hearing. (b) 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   forming  the infrastructure financing district without allocation of the tax revenues of any affected taxing entity  which   that  has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity. SEC. 6. Section 53395.20 of the Government Code is amended to read: 53395.20.  (a)    At the conclusion of the hearing  required by Section 53395.17  , the legislative body may adopt a resolution  proposing adoption of   adopting  the infrastructure financing plan, as modified, and  approving the  formation of the infrastructure financing district in a manner consistent with Section 53395.19, or it may abandon the proceedings.  If the legislative body adopts a resolution proposing formation of the district, it shall then submit the proposal to create the district to the qualified electors of the proposed 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 formation. The legislative body shall provide the resolution of formation, 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 formation. 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 formation, 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 proposed district for each of the 90 days preceding the close of the hearing, the vote shall be by the registered voters of the proposed 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 proposed 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 proposed 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.  SEC. 7. Section 53395.21 of the Government Code is repealed.  53395.21. (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 9190 of the Elections Code or pursuant to Sections 9281 to 9287, inclusive, and 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.  SEC. 8. Section 53395.22 of the Government Code is repealed.  53395.22. (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.  SEC. 9. Section 53395.23 of the Government Code is repealed.  53395.23. After the canvass of returns of any election pursuant to Section 53395.20, the legislative body may, by ordinance, adopt the infrastructure financing plan and create the district with full force and effect of law, if two-thirds of the votes upon the question of creating the district are in favor of creating the district.  SEC. 10. Section 53395.24 of the Government Code is repealed.  53395.24. After the canvass of returns of any election conducted pursuant to Section 53395.20, the legislative body shall take no further action with respect to the proposed infrastructure financing district for one year from the date of the election if the question of creating the district fails to receive approval by two-thirds of the votes cast upon the question.  SEC. 11. Section 53395.25 of the Government Code is repealed.  53395.25. The legislative body 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 53395.20 in any convenient manner.  SEC. 12. Section 53396 of the Government Code is amended to read: 53396. Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the  ordinance   resolution  adopted pursuant to Section  53395.23   53395.20  to create the district, shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the  ordinance   resolution adopted pursuant to Section  53395.23   53395.20  to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid. (b) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city and each affected taxing entity which has agreed to participate pursuant to Section 53395.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid. SEC. 13. Section 53397.1 of the Government Code is amended to read: 53397.1. The legislative body may, by majority vote,  initiate proceedings to issue bonds   authorize the issuance of bonds  pursuant to this chapter by adopting a resolution  stating its intent to issue the bonds  . SEC. 14. Section 53397.2 of the Government Code is amended to read: 53397.2. The resolution adopted pursuant to Section 53397.1 shall contain all of the following information: (a) A description of the facilities to be financed with the proceeds of the  proposed  bond issue. (b) The estimated cost of the facilities, 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)   (d)  A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.  (f)   (e)  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)   (d)  .  (f) The issuance of the bonds in one or more series.   (g) The date the bonds will bear.   (h) The denomination of the bonds.   (i) The form of the bonds.   (j) The manner and execution of the bonds.   (k) The medium of payment in which the bonds are payable.   (l) The place or manner of payment and any requirements for registration of the bonds.   (m) The terms or call of redemption, with or without premium.  SEC. 15. Section 53397.4 of the Government Code is repealed.  53397.4. The clerk of the legislative body shall publish the resolution adopted pursuant to Section 53397.1 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.  SEC. 16. Section 53397.5 of the Government Code is repealed.  53397.5. The legislative body shall submit the proposal to issue the bonds to the voters who reside within the district. The election shall be conducted in the same manner as the election to create the district pursuant to Section 53395. 20 and the two elections may be consolidated.  SEC. 17. Section 53397.6 of the Government Code is repealed.  53397.6. (a) The bonds may be issued if two-thirds 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 legislative body shall proceed with the issuance of the bonds by adopting a resolution which 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, which shall be consistent with the amount specified in subdivision (b) of Section 53397.2. (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.  SEC. 18. Section 53397.7 of the Government Code is repealed.  53397.7. If any proposition submitted to the voters pursuant to this chapter is defeated by the voters, the legislative body shall not submit, or cause to be submitted, a similar proposition to the voters for at least one year after the first election.