Bill Text: CA AB2144 | 2011-2012 | Regular Session | Amended

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

---

Bill Title: Local government: infrastructure and revitalization

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2012-09-29 - Consideration of Governor's veto pending. [AB2144 Detail]

Download: California-2011-AB2144-Amended.html

---

BILL NUMBER: AB 2144	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Members John A. Pérez and Atkins

                        FEBRUARY 23, 2012

   An act to amend  Section 53395.4 of the Government Code
   Sections 53395.1, 53395.3, 53395.4, 53395.14,
53395.23, 53395.24, and 53397.6 of, and to add Sections 53395.1.5,
53395.3.1, and 53395.26 to, the Government Code, and to amend Section
33459 of the Health and Safety Code  , relating to 
economic development   local government  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2144, as amended, John A. Pérez. Local government: 
economic development.   infrastructure and
revitalization financing districts.  
   Existing law authorizes the creation of infrastructure financing
districts, as defined, for the sole purpose of financing public
facilities, subject to adoption of a resolution by the legislative
body and affected taxing entities proposed to be subject to division
of taxes and 2/3 voter approval. Existing law authorizes the
legislative body to, by majority vote, initiate proceedings to issue
bonds for the financing of district projects by adopting a
resolution, subject to specified procedures and 2/3 voter approval.
Existing law requires an infrastructure financing plan to include the
date on which an infrastructure financing district will cease to
exist, which may not be more than 30 years from the date on which the
ordinance forming the district is adopted. Existing law prohibits a
district from including any portion of a redevelopment project area.
Existing law, the Polanco Redevelopment Act, authorizes a
redevelopment agency to take any action that the agency determines is
necessary and consistent with state and federal laws to remedy or
remove a release of hazardous substances on, under, or from property
within a project area, whether the agency owns that property or not,
subject to specified conditions.  
   This bill would authorize the creation of an infrastructure and
revitalization financing district and the issuance of debt with 55%
voter approval. The bill would authorize the creation of a district
for up to 40 years and the issuance of debt with a final maturity
date of up to 30 years. The bill would delete the prohibition on a
district including any portion of a redevelopment project area, and
authorize a district to finance projects in redevelopment project
areas and former redevelopment project areas and former military
bases. The bill would authorize a city to form a district to finance
a project or projects on a former military base, if specified
conditions are met. The bill would provide that the issuance of debt
by such a district on land of a former military base that is publicly
owned is not subject to voter approval.  
   The bill would expand the projects that a district may fund to
include watershed land used for the collection and treatment of water
for urban uses, flood management, levees, bypasses, open space,
habitat restoration, brownfields restoration, environmental
mitigation, purchase of land and property for development purposes,
including commercial property, hazardous cleanup, former military
bases, and specified transportation purposes. The bill would
authorize a district to implement hazardous cleanup pursuant to the
Polanco Redevelopment Act, as specified. The bill would impose a
specified reporting requirement on districts. The bill would make a
statement of legislative intent and would change the name of an
"infrastructure financing district" to "infrastructure and
revitalization financing district."  
   Existing law provides for various economic development programs
that foster community sustainability and community and economic
development initiatives throughout the state.  
   This bill would declare the intent of the Legislature to enact
legislation during the 2011-12 Regular Session that establishes
long-term, targeted programs that provide local governments with
tools and resources for specified purposes in a manner that
encourages local cooperation and includes appropriate protections for
state and local taxpayers.  
   Existing law authorizes a city, county, or city and county to
establish infrastructure financing districts for the sole purpose of
financing public facilities utilizing incremental property tax
revenues. A district may not include a redevelopment project area and
a redevelopment project area may not include any portion of a
district.  
   The bill would delete the provision prohibiting a district from
including a redevelopment project area and a redevelopment project
area from including any portion of a district. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to enact
legislation during the 2011-12 Regular Session that establishes
long-term, targeted programs that provide local governments with
tools and resources for specified purposes, including, but not
limited to, public infrastructure, affordable housing, economic
development and job creation, and environmental protection and
remediation, in a manner that encourages local cooperation and
includes appropriate protections for state and local taxpayers.
   SEC. 2.    Section 53395.1 of the  
Government Code   is amended to read: 
   53395.1.  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   that  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) "City" means a city, 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 engineer or other
appropriate official designated pursuant to Section 53395.13.
   (e) (1) "District" means an infrastructure  and revitalization
 financing district.
   (2) An infrastructure  and revitalization  financing
district is a "district" within the meaning of Section 1 of Article
XIII A of the California Constitution.
   (f) "Infrastructure  and revitalization  financing
district" means a legally constituted governmental entity established
pursuant to this chapter for the sole purpose of financing public
facilities.
   (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.
   SEC. 3.    Section 53395.1.5 is added to the 
 Government Code   , to read:  
   53395.1.5.  Notwithstanding any other law, any reference in this
title to an "infrastructure financing district" or "district" shall
instead be deemed to refer to an "infrastructure and revitalization
financing district." 
   SEC. 4.    Section 53395.3 of the   
 Government Code   is amended to read: 
   53395.3.  (a) A district may finance (1) 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 which satisfies the
requirements of subdivision (b), (2) may finance planning and design
work which is directly related to the purchase, construction,
expansion, or rehabilitation of that property  ,  and (3)
the costs described in Sections 53395.5  ,  and
53396.5.  A district may only finance the purchase of
facilities for which construction has been completed, as determined
by the legislative body.  The facilities need not be
physically located within the boundaries of the district. A district
may not finance routine maintenance, repair work, or the costs of
ongoing operation or providing services of any kind.
   (b) The district shall finance only public capital facilities 
or projects  of communitywide significance,  which
provide significant benefits to an area larger than the area of the
district,  including, but not limited to,  all
  any  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  and watershed lands used  for the
collection and treatment of water for urban uses.
   (4) Flood  control   management, including
 levees  and   , bypasses,  dams,
retention basins, and drainage channels.
   (5) Child care facilities.
   (6) Libraries.
   (7) Parks, recreational facilities,  and  open
space  , and habitat restoration  .
   (8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles. 
   (9) Brownfields restoration and other environmental mitigation.
 
   (10) Purchase of land and property for development purposes and
related site improvements.  
   (11) Acquisition, construction, or repair of housing for rental or
purchase, including multipurpose facilities.  
   (12) Acquisition, construction, or repair of commercial or
industrial structures for private use.  
   (13) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851. 
   (c) Any district  which   that 
constructs dwelling units shall set aside not less than 20 percent of
those units to increase and improve the community's supply of low-
and moderate-income housing available at an affordable housing cost,
as defined by Section 50052.5 of the Health and Safety Code, to
persons and families of low- and moderate-income, as defined in
Section 50093 of the Health and Safety Code. 
   (d) 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.  
   (e) A district may finance any project that implements a
sustainable communities strategy prepared pursuant to Section 65074.

   SEC. 5.    Section 53395.3.1 is added to the 
 Government Code   , to read:  
   53395.3.1.  (a) A city may form a district to finance a project or
projects on a former military base pursuant to the requirements set
forth in this chapter.
   (b) A district formed under this section may finance a project
pursuant to Section 53395.3 or this section only if the project is
consistent with the authority reuse plan and is approved by the
military base reuse authority, if applicable.
   (c) Notwithstanding Section 53397.6, the issuance of debt by a
district formed under this section to finance a project on land of a
former military base that is publicly owned shall not be subject to
voter approval. 
   SEC. 2.   SEC. 6.   Section 53395.4 of
the Government Code is amended to read:
   53395.4.  (a) A district may finance only the facilities or
services authorized in this chapter to the extent that the facilities
or services are in addition to those provided in the territory of
the district before the district was created. The additional
facilities or services may not supplant facilities or services
already available within that territory when the district was created
but may supplement those facilities and services as needed to serve
new developments.
   (b) A district may include areas  which  
that  are not contiguous. 
   (c) Any district may finance any project or portion of a project
that is located in, or overlaps with, any redevelopment project area
or former redevelopment project area or former military base. 

   (d) Notwithstanding subdivision (c), any debt or obligation of a
district shall be subordinate to an enforceable obligation of a
former redevelopment agency, as defined in Section 34171 of the
Health and Safety Code. 
   SEC. 7.    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
  that  may be allocated to the district pursuant
to the plan.
   (5) A date on which the district  will  
shall  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 district may issue debt with a final maturity date of up to 30
years. 
   (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.
   (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 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. 8.    Section 53395.23 of the   
 Government Code   is amended to read: 
   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   55
percent  of the votes upon the question of creating the district
are in favor of creating the district.
   SEC. 9.    Section 53395.24 of the  
 Government Code   is amended to read: 
   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 55 percent  of the votes cast upon
the question.
   SEC. 10.    Section 53395.26 is added to the 
 Government Code   , to read:  
   53395.26.  No later than June 30 of each year after the adoption
of an infrastructure financing plan, the legislative body shall post
an annual report in an easily identifiable and accessible location on
the legislative body's Internet Web site. The annual report shall
contain all of the following:
   (a) A summary of the district's expenditures.
   (b) A description of the progress made towards the district's
adopted goals.
   (c) An assessment of the status regarding completion of the
district's projects. 
   SEC. 11.    Section 53397.6 of the   
 Government Code   is amended to read: 
   53397.6.  (a) The bonds may be issued if  two-thirds
  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 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. 12.    Section 33459 of the   Health
and Safety Code   is amended to read: 
   33459.  For purposes of this article, the following terms shall
have the following meanings:
   (a)  "Department" means the Department of Toxic Substances
Control.
   (b)  "Director" means the Director of Toxic Substances Control.
   (c)  "Hazardous substance" means any hazardous substance as
defined in subdivision (h) of Section 25281, and any reference to
hazardous substance in the definitions referenced in this section
shall be deemed to refer to hazardous substance, as defined in this
subdivision.
   (d)  "Local agency" means a single local agency that is one of the
following:
   (1)  A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and Chapter
6.75 (commencing with Section 25299.10) of, Division 20.
   (2)  A local officer who is authorized pursuant to Section 101087
to supervise a remedial action. 
   (3) An infrastructure and revitalization financing district. 

   (e)  "Qualified independent contractor" means an independent
contractor who is any of the following:
   (1)  An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.
   (2)  A geologist who is registered pursuant to Section 7850 of the
Business and Professions Code.
   (3)  A civil engineer who is registered pursuant to Section 6762
of the Business and Professions Code.
   (f)  "Release" means any release, as defined in Section 25320.
   (g)  "Remedy" or "remove" means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
"Remedy" includes any action set forth in Section 25322 and "remove"
includes any action set forth in Section 25323.
   (h)  "Responsible party" means any person described in subdivision
(a) of Section 25323.5 of this code or subdivision (a) of Section
13304 of the Water Code.