Bill Text: CA AB2182 | 2009-2010 | Regular Session | Enrolled
Bill Title: Contractual assessments: onsite sewer and septic
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB2182 Detail]
Download: California-2009-AB2182-Enrolled.html
BILL NUMBER: AB 2182 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 24, 2010
PASSED THE ASSEMBLY AUGUST 25, 2010
AMENDED IN SENATE AUGUST 20, 2010
AMENDED IN SENATE AUGUST 11, 2010
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN SENATE JUNE 2, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Huffman
(Coauthors: Senators Liu and Pavley)
FEBRUARY 18, 2010
An act to add Sections 5898.15, 5898.23, and 5899.1 to the Streets
and Highways Code, relating to contractual assessments.
LEGISLATIVE COUNSEL'S DIGEST
AB 2182, Huffman. Contractual assessments: onsite sewer and septic
improvements.
Existing law authorizes a legislative body of a public agency, as
defined, to determine that it would be convenient and advantageous to
designate an area within which authorized officials and free and
willing 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 residential, commercial, industrial,
agricultural, or other real property.
This bill would expand these provisions to include contractual
assessments to finance onsite sewer and septic improvements, as
defined. The bill would permit onsite sewer and septic improvements
to be installed to convert residential, commercial, industrial,
agricultural, or other real property from an onsite septic system to
community sewer collection service and to modify or replace existing
onsite sewer and septic improvements. The bill would also permit
these assessments to be used to replace or upgrade an existing septic
system if specified requirements are met. The bill would also
prohibit a public agency from permitting a property owner to
participate in a contractual assessment program if the total amount
of assessments and taxes on the property exceeds 5% of the property's
market value, as specified. The bill would require the preliminary
report issued in connection with the contractual assessment program
to include criteria for determining the underwriting requirements, as
well as safeguards to be used to limit the total annual property tax
and assessments on the property, as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5898.15 is added to the Streets and Highways
Code, to read:
5898.15. (a) A public agency shall not permit a property owner to
participate in any program established pursuant to this chapter if
the owner's participation would result in the total amount of any
annual property taxes and assessments exceeding 5 percent of the
property's market value, as determined at the time of approval of the
owner's contractual assessment.
(b) Nothing in this chapter shall be construed to void or
otherwise release a property owner from the contractual obligations
incurred by a contractual assessment on a property, particularly in
the event that the total amount of annual property taxes and
assessments exceeds 5 percent of a property's market value after the
property owner has entered into a contractual assessment pursuant to
this chapter.
SEC. 2. Section 5898.23 is added to the Streets and Highways Code,
to read:
5898.23. For purposes of the report required pursuant to Section
5898.22, the statement of public agency policies required pursuant to
subdivision (c) of that section shall also include a brief
description of criteria for determining the underwriting
requirements, as well as safeguards that will be used to ensure that
the total annual property tax and assessments on the property will
not exceed 5 percent of the property's market value, as determined at
the time of approval for the owner's contractual assessment.
SEC. 3. Section 5899.1 is added to the Streets and Highways Code,
to read:
5899.1. (a) The Legislature finds and declares all of the
following:
(1) It is the intent of the Legislature to address water quality
needs throughout California by permitting voluntary individual sewer
and septic improvements that provide a public benefit. The
Legislature further intends that this chapter should be used to
finance the installation of onsite sewer and septic improvements that
are permanently fixed to residential, commercial, industrial,
agricultural, or other real property, for the installation of
improvements to, and replacements of, existing onsite sewer
facilities served by a community sewer system, a septic system, and
conversion of the property from a septic system to community sewer
collection and treatment service.
(2) To improve the quality of surface water and groundwater,
necessary efforts include the promotion of onsite sewer and septic
improvements that provide a public benefit in water quality
protection.
(3) The upfront cost of converting residential, commercial,
industrial, agricultural, or other real property from an onsite
septic system to sewer collection service, updating an existing
septic system, or making needed improvements to, or replacements of,
existing sewer laterals, 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 onsite sewer and septic improvements.
(4) The Legislature declares that a public purpose will be served
by a voluntary contractual assessment program that provides the
legislative body of a public agency with the authority to finance the
installation of onsite sewer and septic improvements that are
permanently fixed to residential, commercial, industrial,
agricultural, or other real property.
(b) For purposes of this section, the following terms shall have
the following meanings:
(1) "Onsite sewer and septic improvements" means permanent sewer
and septic improvements fixed to real property that convey sewage
from the property's interior plumbing to the point of discharge into
the public agency's sewer facilities, and may include, but is not
limited to, pipes, pumps, other equipment, sewer laterals, septic
system abandonment, or one-time charges for sewage treatment capacity
associated with the improvements. Onsite sewer and septic
improvements may be installed for the following purposes:
(A) To convert residential, commercial, industrial, agricultural,
or other real property from an onsite septic system to community
sewer collection service.
(B) To modify or replace existing onsite sewer improvements.
(2) "Onsite sewer and septic improvements" also means the
replacement of, or upgrade of, an existing septic system if all of
the following requirements are met:
(A) The public agency determines that the building served by the
septic system is not within the range of service of an existing or
planned public sewer.
(B) The replacement or upgrade of the existing septic system
satisfies all local requirements regarding pretreatment, effluent
meters or other devices to control solids releases, and emergency
capacity and malfunction alarming devices.
(3) For the purpose of financing the installation of onsite sewer
and septic improvements, "public agency" means a city, county, city
and county, municipal utility district, community services district,
sanitary district, sanitation district, or water district, as defined
in Section 20200 of the Water Code. The definition of "city" in
Section 5005 shall not apply to this paragraph.
(c) The legislative body of any public agency may designate an
area, in the manner provided pursuant to Section 5898.20, within
which authorized public agency officials and property owners may
enter into voluntary contractual assessments to finance the
installation of onsite sewer and septic improvements that are
permanently fixed to real property pursuant to this chapter.
(d) For purposes of establishing a voluntary contractual
assessment program relating to onsite sewer and septic improvements,
the legislative body shall make the determinations required pursuant
to Section 5898.20 by adopting a resolution indicating its intention
to do so. The resolution of intention shall identify the kinds of
onsite sewer and septic improvements that may be financed and shall
include all of the information that is required pursuant to
subdivision (b) of Section 5898.20, including, but not limited to,
directing an appropriate public agency official to prepare a report
pursuant to Section 5898.22.
(e) For purposes of the report required pursuant to Section
5898.22, relating to a voluntary contractual assessment program for
onsite sewer and septic improvements, the designated public agency
official shall satisfy the requirements of paragraph (1) of
subdivision (c) of Section 5898.22 by identifying the types of onsite
sewer and septic improvements that may be financed through the use
of contractual assessments.
(f) Notwithstanding any other provision of this chapter, upon the
written consent of an authorized public agency official, the proposed
arrangements for financing the program pertaining to the
installation of onsite sewer and septic 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 onsite sewer and septic improvements and to contract
directly for the installation of onsite sewer and septic improvements
that are permanently fixed to the property owner's residential,
commercial, industrial, agricultural, or other real property.
