Bill Text: CA AB2182 | 2009-2010 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: AB 2182	AMENDED
	BILL TEXT

	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 amend Sections 5898.12, 5898.14, 5898.20, 5898.21, and
5898.22 of the Streets and Highways Code, relating to contractual
assessments.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2182, as amended, Huffman. Contractual assessments:  onsite
 sewer  lateral lines.   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. 
   Vote: majority. 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 that 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,
agricultural, 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, agricultural, or other real property,
including, but not limited to, recycled water connections, synthetic
turf, cisterns for stormwater recovery, and permeable pavement.
   (d) It is also 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.
   (e) It is also the intent of the Legislature that a public agency
in the process of establishing an assessment program, to the extent
feasible, use a good faith effort to provide advance notice of the
proposed program to water and electric service providers in the
relevant service area, as set forth in Section 5898.24, to allow the
most efficient coordination and collaboration between the public
agency and water and electric service providers.
   (f) This chapter shall not be used to finance facilities for
parcels which are undergoing development.
   (g) This chapter shall not be used to finance the purchase or
installation of appliances that are not permanently fixed to
residential, commercial, industrial, agricultural, or other real
property.
   (h) 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, agricultural, or other real property, are necessary to
address the issue of global climate change. To improve the quality of
surface water and groundwater, necessary efforts include the
promotion of onsite water improvements that provide a public benefit
in water quality protection.
   (2) The upfront cost of making residential, commercial,
industrial, agricultural, or other real property more energy and
water efficient, converting 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 energy and water efficiency improvements and
onsite sewer  and septic  improvements.
   (b) 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 distributed generation renewable energy sources,
onsite sewer  and septic  improvements, and energy or water
efficiency improvements that are permanently fixed to residential,
commercial, industrial, agricultural, 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 a public agency may
determine that it would be convenient and advantageous to designate
an area within the public agency, that may encompass the entire
public agency or a lesser portion, within which authorized public
agency officials and property owners may enter into voluntary
contractual assessments for public improvements and to make financing
arrangements pursuant to this chapter.
   (2) The legislative body of a public agency may also determine
that it would be convenient, advantageous, and in the public interest
to designate an area within the public agency, that may encompass
the entire public agency or a lesser portion, within which authorized
public agency officials and property owners may enter into voluntary
contractual assessments to finance the installation of distributed
generation renewable energy sources, onsite sewer  and septic
 improvements, 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 public
agency proposes to make voluntary contractual assessment financing
available to property owners, shall identify the kinds of public
works, distributed generation renewable energy sources, onsite sewer
 and septic  improvements, or energy or water efficiency
improvements that may be financed, shall describe the boundaries of
the area within which voluntary contractual assessments may be
entered into, and shall briefly describe the proposed arrangements
for financing the program, including a brief description of criteria
for determining the creditworthiness of a property owner. The
resolution of intention shall state that it is in the public interest
to finance the installation of distributed generation renewable
energy sources,, energy or water efficiency improvements, or onsite
sewer  and septic  improvements, or a combination of those
improvements, 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 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 voluntary 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 shall
have the following meaning:
   (1) "Efficiency improvements" means permanent improvements fixed
to residential, commercial, industrial, agricultural, or other real
property.
   (2) "Legislative body" means the governing body of a public
agency.
   (3) (A) For the purpose of financing the installation of water
efficiency improvements or 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 subparagraph.
   (B) For the purpose of financing the installation of distributed
generation renewable energy sources or energy efficiency
improvements, "public agency" means a county, city, city and county,
or a municipal utility district, an irrigation district, or public
utility district that owns and operates an electric distribution
system. The definition of "city" in Section 5005 shall not apply to
this subparagraph.
   (C) For the purpose of financing the public improvements, "public
agency" means a city as defined in Section 5005.
   (4)  (A)    "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  either of  the
following purposes: 
   (A) 
    (i)  To convert residential, commercial, industrial,
agricultural, or other real property from an onsite septic system to
community sewer collection service. 
   (B) 
    (ii)  To modify or replace existing onsite sewer
improvements. 
   (B) "Onsite sewer and septic improvements" also means the
replacement of, or upgrade of, an existing septic system if the all
of the following requirements are met:  
   (i) 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.  
   (ii) 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. 
  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 public agency official, the
proposed arrangements for financing the program pertaining to the
installation of distributed generation renewable energy sources,
onsite sewer  and septic  improvements, 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, onsite sewer  and septic
 improvements, or energy or water efficiency improvements and to
contract directly for the installation of distributed generation
renewable energy sources, onsite sewer  and septic 
improvements, or energy or water efficiency improvements that are
permanently fixed to the property owner's residential, commercial,
industrial, agricultural, 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
voluntary 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 voluntary
contractual assessment area and the public agency.
   (c) A statement of public agency policies concerning voluntary
contractual assessments including all of the following:
   (1) Identification of types of facilities, distributed generation
renewable energy sources, onsite sewer  and septic 
improvements, or energy or water efficiency improvements that may be
financed through the use of contractual assessments.
   (2) Identification of a public agency official authorized to enter
into voluntary contractual assessments on behalf of the public
agency.
   (3) A maximum aggregate dollar amount of voluntary contractual
assessments.
   (4) A method for setting requests from property owners for
financing through voluntary 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 voluntary contractual assessments. The plan may
include amounts to be advanced by the 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 voluntary
contractual assessment program among the consenting property owners
and the 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 voluntary 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.