Bill Text: CA AB474 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Contractual assessments: water efficiency improvements.

Spectrum: Bipartisan Bill

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 444, Statutes of 2009. [AB474 Detail]

Download: California-2009-AB474-Introduced.html

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BILL NUMBER: AB 474	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Blumenfield

                        FEBRUARY 24, 2009

   An act to amend Sections 5898.12, 5898.14, 5898.20, 5898.21,
5898.22, 5898.28, and 5898.30 of the Streets and Highways Code, and
to add Section 73.5 to the Revenue and Taxation Code, relating to
contractual assessments, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 474, as introduced, Blumenfield. Contractual assessments: water
efficiency improvements.
   Existing law authorizes the legislative body of any city, defined
as a city, county, or city and county, to determine that it would be
convenient and advantageous to designate an area within which
authorized city officials and free and willing property owners may
enter into contractual assessments and make arrangements to finance
public improvements to specified lots or parcels or to finance the
installation of distributed generation renewable energy sources or
energy efficiency improvements that are permanently fixed to real
property, as specified. Existing law requires the legislative body to
make these determinations by adopting a resolution indicating its
intention to do so and requires the resolution to include certain
specified information.
   This bill would expand these provisions to authorize the
legislative body of any public agency, as defined, to determine that
it would be in the public interest to designate an area within which
authorized city officials and free and willing property owners may
enter into contractual assessments to finance the installation of
water efficiency improvements that are permanently fixed to real
property, as specified. The bill would also, with respect to all of
the provisions relating to public improvements and the installation
of distributed generation renewable energy sources or energy
efficiency improvements, redefine the term "city" as a "public agency"
to include, every governmental subdivision, every district, every
public and quasi-public corporation, every public agency and public
service corporation and every town, city, county, and city and
county, and municipal corporation, whether incorporated or not and
whether chartered or not. The bill would similarly modify the
definition of "legislative body" to also include the governing body
of a public agency or any other public body created by statute. The
bill would also specify that these improvements are not new
construction which would be subject to property taxation. The bill
would declare the intent of the Legislature in this regard.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5898.12 of the Streets and Highways Code is
amended to read:
   5898.12.  (a) It is the intent of the Legislature that this
chapter should be used to finance public improvements to lots or
parcels which are developed and where the costs and time delays
involved in creating an assessment district pursuant to other
provisions of this division or any other law would be prohibitively
large relative to the cost of the public improvements to be financed.

   (b) It is also the intent of the Legislature that this chapter
should be used to finance the installation of distributed generation
renewable energy sources or energy efficiency improvements that are
permanently fixed to residential, commercial, industrial, or other
real property. 
   (c) It is also the intent of the Legislature to address chronic
water needs throughout California by permitting, voluntary,
individual efforts to improve water efficiency. The Legislature
further intends that this chapter should be used to finance the
installation of water efficiency improvements that are permanently
fixed to residential, commercial, industrial, or other real property,
including, but not limited to, recycled water connections, synthetic
turf, cisterns for stormwater recovery, and water-porous concrete.
 
   (c) 
    (d)  This chapter shall not be used to finance
facilities for parcels which are undergoing development. 
   (d) 
    (e)  This chapter shall not be used to finance the
purchase or installation of appliances that are not permanently fixed
to residential, commercial, industrial, or other real property.

   (e) 
    (f)  Assessments may be levied pursuant to this chapter
only with the free and willing consent of the owner of each lot or
parcel on which an assessment is levied at the time the assessment is
levied.
  SEC. 2.  Section 5898.14 of the Streets and Highways Code is
amended to read:
   5898.14.  (a) The Legislature finds all of the following:
   (1) Energy  and water  conservation efforts, including
the promotion of energy efficiency improvements to residential,
commercial, industrial, or other real property are necessary to
address the issue of global climate change.
   (2) The upfront cost of making residential, commercial,
industrial, or other real property more energy  and water 
efficient prevents many property owners from making those
improvements. To make those improvements more affordable and to
promote the installation of those improvements, it is necessary to
authorize an alternative procedure for authorizing assessments to
finance the cost of energy  and water  efficiency
improvements.
   (b) The Legislature declares that a public purpose will be served
by a contractual assessment program that provides the legislative
body of any  city   public agency  with the
authority to finance the installation of distributed generation
renewable energy sources and energy  or water  efficiency
improvements that are permanently fixed to residential, commercial,
industrial, or other real property.
  SEC. 3.  Section 5898.20 of the Streets and Highways Code is
amended to read:
   5898.20.  (a) (1) The legislative body of any  city
  public agency  may determine that it would be
convenient and advantageous to designate an area within the 
city   public agency  , which may encompass the
entire  city   public agency  or a lesser
portion, within which authorized  city   public
agency  officials and property owners may enter into contractual
assessments for public improvements and to make financing
arrangements pursuant to this chapter.
   (2) The legislative body of any  city  
public agency  may also determine that it would be convenient,
advantageous, and in the public interest to designate an area within
the  city   public agency  , which may
encompass the entire  city   public agency 
or a lesser portion, within which authorized  city 
 public agency  officials and property owners may enter
into contractual assessments to finance the installation of
distributed generation renewable energy sources or energy  or
water  efficiency improvements that are permanently fixed to
real property pursuant to this chapter.
   (b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so. The
resolution of intention shall include a statement that the 
city   public agency  proposes to make contractual
assessment financing available to property owners, shall identify the
kinds of public works, distributed generation renewable energy
sources, or energy  or water  efficiency improvements that
may be financed, shall describe the boundaries of the area within
which contractual assessments may be entered into, and shall briefly
describe the proposed arrangements for financing the program. The
resolution of intention shall state that it is in the public interest
to finance the installation of distributed generation renewable
energy sources or energy  or water  efficiency improvements,
or both, pursuant to paragraph (2) of subdivision (a), if
applicable. The resolution shall state that a public hearing should
be held at which interested persons may object to or inquire about
the proposed program or any of its particulars, and shall state the
time and place of the hearing. The resolution shall direct an
appropriate  city   public agency  official
to prepare a report pursuant to Section 5898.22 and to enter into
consultations with the county auditor's office or county controller's
office in order to reach agreement on what additional fees, if any,
will be charged to the city or county for incorporating the proposed
contractual assessments into the assessments of the general taxes of
the city or county on real property.
   (c) As used in this chapter, each of the following terms has the
following meaning: 
   (1) Notwithstanding Section 5005, "city" means a city, county, or
city and county.  
   (1) "Public agency" means every governmental subdivision, every
district, every public and quasi-public corporation, every public
agency and public service corporation and every town, city, county,
and city and county, and municipal corporation, whether incorporated
or not and whether chartered or not. 
   (2) "Legislative body"  has the same meaning 
 includes bodies  as defined in Section 5006  and the
governing body of a public agency or any other public body created by
statute  . 
   (3) "Efficiency improvements" means permanent improvements fixed
to residential, commercial, industrial, or other real property. 

  SEC. 4.  Section 5898.21 of the Streets and Highways Code is
amended to read:
   5898.21.  Notwithstanding any other provision of this chapter,
upon the written consent of an authorized  city 
 public agency  official, the proposed arrangements for
financing the program pertaining to the installation of distributed
generation renewable energy sources or energy  or water 
efficiency improvements that are permanently fixed to real property
may authorize the property owner to purchase directly the related
equipment and materials for the installation of distributed
generation renewable energy sources or energy  or water 
efficiency improvements and to contract directly for the installation
of distributed generation renewable energy sources or energy  or
water  efficiency improvements that are permanently fixed to
the property owner's residential, commercial, industrial, or other
real property.
  SEC. 5.  Section 5898.22 of the Streets and Highways Code is
amended to read:
   5898.22.  The report shall contain all of the following:
   (a) A map showing the boundaries of the territory within which
contractual assessments are proposed to be offered.
   (b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the contractual
assessment area and the  city   public agency
 .
   (c) A statement of  city   public agency
 policies concerning contractual assessments including all of
the following:
   (1) Identification of types of facilities, distributed generation
renewable energy sources, or energy  or water  efficiency
improvements that may be financed through the use of contractual
assessments.
   (2) Identification of a  city   public agency
 official authorized to enter into contractual assessments on
behalf of the  city   public agency  .
   (3) A maximum aggregate dollar amount of contractual assessments.
   (4) A method for setting requests from property owners for
financing through contractual assessments in priority order in the
event that requests appear likely to exceed the authorization amount.

   (d) A plan for raising a capital amount required to pay for work
performed pursuant to contractual assessments. The plan may include
amounts to be advanced by the  city   public
agency  through funds available to it from any source. The plan
may include the sale of a bond or bonds or other financing
relationship pursuant to Section 5898.28. The plan shall include a
statement of or method for determining the interest rate and time
period during which contracting property owners would pay any
assessment. The plan shall provide for any reserve fund or funds. The
plan shall provide for the apportionment of all or any portion of
the costs incidental to financing, administration, and collection of
the contractual assessment program among the consenting property
owners and the  city   public agency  .
   (e) A report on the results of the consultations with the county
auditor's office or county controller's office concerning the
additional fees, if any, that will be charged to the city or county
for incorporating the proposed contractual assessments into the
assessments of the general taxes of the city or county on real
property, and a plan for financing the payment of those fees.
  SEC. 6.  Section 5898.28 of the Streets and Highways Code is
amended to read:
   5898.28.  A  city   public agency  may
issue bonds pursuant to this chapter, the principal and interest for
which would be repaid by contractual assessments. A  city
  public agency  may advance its own funds to
finance work to be repaid through contractual assessments, and may
from time to time sell bonds to reimburse itself for such advances. A
 city   public agency  may enter into a
relationship with an underwriter or financial institution that would
allow the sequential issuance of a series of bonds, each bond being
issued as the need arose to finance work to be repaid through
contractual assessments. The interest rate of each bond may be
determined by an appropriate index, but shall be fixed at the time
each bond is issued. Bond proceeds may be used to establish a reserve
fund, and to pay for expenses incidental to the issuance and sale of
the bonds. Division 10 (commencing with Section 8500) shall apply to
any bonds issued pursuant to this section, insofar as that division
is not in conflict with this chapter.
  SEC. 7.  Section 5898.30 of the Streets and Highways Code is
amended to read:
   5898.30.  Assessments levied pursuant to this chapter, and the
interest and any penalties thereon shall constitute a lien against
the lots and parcels of land on which they are made, until they are
paid. Division 10 (commencing with Section 8500) applies to the levy
and collection of assessments levied pursuant to this chapter,
insofar as those provisions are not in conflict with the provisions
of this chapter, including, but not limited to, the collection of
assessments in the same manner and at the same time as the general
taxes of the city  or county  on real property are payable
and any penalties and remedies and lien priorities in the event of
delinquency and default.
  SEC. 8.  Section 73.5 is added to the Revenue and Taxation Code, to
read:
   73.5.  Notwithstanding any other provision of law, the term "newly
constructed" as used in subdivision (a) of Section 2 of Article XIII
A of the California Constitution does not include the construction
or addition of any distributed generation renewable energy sources or
energy or water efficiency improvements, as specified in Chapter 29
(commencing with Section 5898.10) of the Streets and Highways Code.
  SEC. 9.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order for legislative bodies of public agencies and free and
willing property owners to enter into contractual assessments to
finance water efficiency improvements and for the state to begin to
experience the effects of these contractual assessments, it is
necessary that this act take effect immediately.