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  
Report Pass
7/17/25  

Caption

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

Impact

The bill modifies existing laws related to enhanced infrastructure financing districts and introduces the concept of the California Capital City Downtown Revitalization District. Under this framework, affected taxing entities in the County of Sacramento can choose to participate, contributing to a collective effort to improve infrastructure. This approach is anticipated to enhance the capacity of local governments to manage urban redevelopment, potentially fostering a more vibrant and economically thriving downtown area. The inclusion of provisions for the acceptance of state funds emphasizes the collaborative mechanism between state and local governance.

Summary

Senate Bill 516, known as the California Capital City Downtown Revitalization Act, aims to authorize the City or County of Sacramento to create an enhanced infrastructure financing district focused on the downtown area. This bill seeks to empower local authorities to finance public capital facilities and other significant community projects by allowing the division of tax revenues generated within the district. The proposed legislation is designed to stimulate economic development and urban revitalization by attracting investment and enhancing infrastructure in Sacramento's downtown region.

Sentiment

Discussions surrounding SB 516 generally reflect a positive sentiment among proponents who view the bill as a vital step towards rejuvenating Sacramento’s urban landscape. Supporters argue that the establishment of the district will facilitate significant investment in public infrastructure, leading to economic growth. Conversely, there might be concerns expressed regarding the management and allocation of the funds generated through the proposed financing plans, as critics might challenge the efficacy and accountability of such initiatives.

Contention

Notably, the bill stipulates that an enhanced infrastructure financing district can utilize state funds, provided there is voter approval and adequate infrastructure financing plans are in place. This introduces a layer of contention regarding local autonomy and the extent of state involvement in local funding measures. Some stakeholders may worry about over-dependence on state funds for local projects, which could undermine direct local taxation or individual city policies. The requirement for a collaborative enactment of this bill with Senate Bill 5 further complicates its legislative journey.

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 AB761

Local finance: enhanced infrastructure financing districts.

CA AB930

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

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 SB1498

Local Government Omnibus Act of 2018.

CA SB1140

Enhanced infrastructure financing district.

CA AB417

Local finance: enhanced infrastructure financing districts: community revitalization and investment authorities.

CA AB2780

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

CA SB563

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