California 2025-2026 Regular Session

California Senate Bill SB516

Introduced
2/19/25  
Refer
2/26/25  
Refer
4/30/25  
Report Pass
5/7/25  
Report Pass
5/7/25  
Engrossed
6/3/25  
Refer
6/9/25  

Caption

Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act.

Impact

The bill modifies existing state law to facilitate additional funding sources for public projects within the designated district by allowing state funds to be accepted, provided proper voter approval is garnered. This move is significant as it could potentially streamline funding processes for necessary infrastructure improvements while augmenting the financial capacity of local governments to address urban challenges. The emphasis on revitalization aims to not only boost the economy but also enhance public spaces and services in the downtown region, aligning with broader urban development goals.

Summary

Senate Bill 516, also known as the California Capital City Downtown Revitalization Act, aims to enhance the financial mechanisms available for revitalizing the downtown area of Sacramento. The bill allows the city or county to establish a special enhanced infrastructure financing district that will enable the collection and division of property taxes within the district. The primary purpose is to generate funding necessary for public capital facilities and significant community projects that will benefit the urban environment of downtown Sacramento, thereby promoting economic growth and development in the area.

Sentiment

Overall, the sentiment surrounding SB 516 appears positive. Proponents argue that this initiative is a crucial step in modernizing Sacramento’s infrastructure financing methods, as it provides local authorities with more control and resources to address pressing city needs. Supporters believe that revitalization efforts will attract businesses and residents while improving the quality of life. However, dissenting opinions may arise regarding the allocation of resources, particularly about ensuring equitable distribution of funds and the possible implications of tax division among affected entities.

Contention

Notable points of contention include concerns regarding the impact on existing tax revenues for local entities. As the law allows for the division of tax revenues generated within the district, there may be apprehensions from stakeholders about how this could affect their funding and budgetary allocations. Additionally, there may be legal implications tied to the special statute's requirement, emphasizing that unique circumstances warrant this specific bill which could raise questions on the broader applicability of similar infrastructure projects elsewhere in California.

Companion Bills

No companion bills found.

Previously Filed As

CA AB2488

Downtown revitalization and economic recovery financing districts: City and County of San Francisco.

CA SB1140

Enhanced infrastructure financing district.

CA AB1819

Enhanced infrastructure financing districts: public capital facilities: wildfires.

CA AB1259

Dissolution of redevelopment agencies: enhanced infrastructure financing districts: City of Merced.

CA AB930

Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.

CA AB761

Local finance: enhanced infrastructure financing districts.

CA SB1227

Real property development: San Francisco: downtown revitalization zone: welfare tax exemption and California Environmental Quality Act exemption and streamlining.

CA AB901

Affordable housing financing districts.

CA SB1342

California Environmental Quality Act: infrastructure projects: County of San Diego.

CA SB174

Public resources: California Environmental Quality Act: exemptions: native fish and wildlife: Capitol Annex.

Similar Bills

CA SB5

Enhanced infrastructure financing districts and community revitalization and investment areas: allocation of taxes: agricultural land exclusion.

CA SB1389

Public investment authorities.

CA AB2488

Downtown revitalization and economic recovery financing districts: City and County of San Francisco.

CA SB1140

Enhanced infrastructure financing district.

CA AB1445

Downtown revitalization and economic recovery financing districts.

CA SB1498

Local Government Omnibus Act of 2018.

CA SB563

Second Neighborhood Infill Finance and Transit Improvements Act: housing developments: homelessness prevention programs: enhanced infrastructure financing plan review and amendment process.

CA AB2780

Dissolution of redevelopment agencies: enhanced infrastructure financing districts: City of Selma.