Bill Text: CA SB214 | 2011-2012 | Regular Session | Introduced

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

---

Bill Title: Infrastructure financing districts: voter approval:

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2012-09-29 - In Senate. Consideration of Governor's veto pending. [SB214 Detail]

Download: California-2011-SB214-Introduced.html

---

BILL NUMBER: SB 214	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wolk

                        FEBRUARY 8, 2011

   An act to amend Sections 53395.5, 53395.6, 53395.7, 53395.14,
53395.19, 53395.20, 53396, 53397.1, and 53397.2 of, and to repeal
Sections 53395.21, 53395.22, 53395.23, 53395.24, 53395.25, 53397.4,
53397.5, 53397.6, and 53397.7 of, the Government Code, relating to
infrastructure financing districts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 214, as introduced, Wolk. Infrastructure financing districts:
voter approval: repeal.
   (1) Existing law authorizes a legislative body, as defined, to
create an infrastructure financing district, adopt an infrastructure
financing plan, and issue bonds, for which only the district is
liable, to finance specified public facilities, upon voter approval.
   This bill would eliminate the requirement of voter approval and
authorize the legislative body to create the district, adopt the
plan, and issue the bonds by resolutions.
   (2) Existing law requires that an infrastructure financing plan
created by a legislative body to include a date on which the district
will cease to exist, which shall not be more than 30 years from the
date on which the ordinance forming the district is adopted.
   This bill instead would specify that the date on which the
district would cease to exist would not be more than 40 years from
the date on which the legislative body adopted the resolution
adopting the infrastructure financing plan.
   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 53395.5 of the Government Code is amended to
read:
   53395.5.  It is the intent of the Legislature that  the
area of the districts created be substantially undeveloped, and
 the establishment of a district should not ordinarily lead
to the removal of existing dwelling units. If, however, any dwelling
units are proposed to be removed or destroyed in the course of
private development or public works construction within the area of
the district, the legislative body shall do all of the following:
   (a) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons or families of low or moderate income, of an equal number of
replacement dwelling units at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed were inhabited by
persons or families of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (b) Within four years of the removal or destruction, cause or
require the construction or rehabilitation, for rental or sale to
persons of low or moderate income, a number of dwelling units which
is at least one unit but not less than 20 percent of the total
dwelling units removed at affordable housing cost, as defined in
Section 50052.5 of the Health and Safety Code, within the territory
of the district if the dwelling units removed or destroyed were not
inhabited by persons of low or moderate income, as defined in Section
50093 of the Health and Safety Code.
   (c) Provide relocation assistance and make all the payments
required by Chapter 16 (commencing with Section 7260) of Division 7
of Title 1, to persons displaced by any public or private development
occurring within the territory of the district. This displacement
shall be deemed to be the result of public action.
   (d) Ensure that removal or destruction of any dwelling units
occupied by persons or families of low or moderate income not take
place unless and until there are suitable housing units, at
comparable cost to the units from which the persons or families were
displaced, available and ready for occupancy by the residents of the
units at the time of their displacement. The housing units shall be
suitable to the needs of these displaced persons or families and
shall be decent, safe, sanitary, and otherwise standard dwellings.
  SEC. 2.  Section 53395.6 of the Government Code is amended to read:

   53395.6.  Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder,  or an election pursuant to this chapter
 shall be commenced within 30 days after the 
enactment of the ordinance creating the district pursuant to Section
53395.23   date the legislative body adopted the
resolution adopting the infrastructure finance plan pursuant to
Section 53395.20  . Consistent with the time limitations of this
section, such an action or proceeding with respect to a division of
taxes under this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure, except that Section 869 of the Code of Civil
Procedure shall not apply.
  SEC. 3.  Section 53395.7 of the Government Code is amended to read:

   53395.7.  An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after  adoption of the resolution
pursuant to Section 53397.6 providing for issuance of the bonds
  the date the legislative body adopted the resolution
authorizing the issuance of the bonds pursuant to Section 53397.1,
 if the action is brought by an interested person pursuant to
Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within 30
days after entry of judgment.
  SEC. 4.  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 may be
allocated to the district pursuant to the plan.
   (5) A date on which the district will 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 legislative body
adopted the resolution adopting the infrastructure finance plan
pursuant to Section 53395.20 .
   (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.
   (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. 5.  Section 53395.19 of the Government Code is amended to
read:
   53395.19.  (a) The legislative body shall not enact a resolution
 proposing formation of   forming  a
district and providing for the division of taxes of any affected
taxing entity pursuant to Article 3 (commencing with Section 53396)
unless a resolution approving the plan has been adopted by the
governing body of each affected taxing entity which is proposed to be
subject to division of taxes pursuant to Article 3 (commencing with
Section 53396) has been filed with the legislative body at or prior
to the time of the hearing.
   (b) Nothing in this section shall be construed to prevent the
legislative body from amending its infrastructure financing plan and
adopting a resolution  proposing formation of  
forming  the infrastructure financing district without
allocation of the tax revenues of any affected taxing entity 
which   that  has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
  SEC. 6.  Section 53395.20 of the Government Code is amended to
read:
   53395.20.   (a)    At the
conclusion of the hearing  required by Section 53395.17  ,
the legislative body may adopt a resolution  proposing
adoption of   adopting  the infrastructure
financing plan, as modified, and  approving the  formation
of the infrastructure financing district in a manner consistent with
Section 53395.19, or it may abandon the proceedings.  If the
legislative body adopts a resolution proposing formation of the
district, it shall then submit the proposal to create the district to
the qualified electors of the proposed district in the next general
election or in a special election to be held, notwithstanding any
other requirement, including any requirement that elections be held
on specified dates, contained in the Elections Code, at least 90
days, but not more than 180 days, following the adoption of the
resolution of formation. The legislative body shall provide the
resolution of formation, a certified map of sufficient scale and
clarity to show the boundaries of the district, and a sufficient
description to allow the election official to determine the
boundaries of the district to the official conducting the election
within three business days after the adoption of the resolution of
formation. The assessor's parcel numbers for the land within the
district shall be included if it is a landowner election or the
district does not conform to an existing district's boundaries and if
requested by the official conducting the election. If the election
is to be held less than 125 days following the adoption of the
resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct of
the election may be waived with the unanimous consent of the
qualified electors of the proposed district and the concurrence of
the election official conducting the election.  
   (b) If at least 12 persons have been registered to vote within the
territory of the proposed district for each of the 90 days preceding
the close of the hearing, the vote shall be by the registered voters
of the proposed district, who need not necessarily be the same
persons, with each voter having one vote. Otherwise, the vote shall
be by the landowners of the proposed district and each landowner who
is the owner of record at the close of the protest hearing, or the
authorized representative thereof, shall have one vote for each acre
or portion of an acre of land that he or she owns within the proposed
district. The number of votes to be voted by a particular landowner
shall be specified on the ballot provided to that landowner.
 
   (c) Ballots for the special election authorized by subdivision (a)
may be distributed to qualified electors by mail with return postage
prepaid or by personal service by the election official. The
official conducting the election may certify the proper mailing of
ballots by an affidavit, which shall be exclusive proof of mailing in
the absence of fraud. The voted ballots shall be returned to the
election officer conducting the election not later than the hour
specified in the resolution calling the election. However, if all the
qualified voters have voted, the election shall be closed. 

  SEC. 7.  Section 53395.21 of the Government Code is repealed.

   53395.21.  (a) Except as otherwise provided in this chapter, the
provisions of law regulating elections of the local agency that calls
an election pursuant to this chapter, insofar as they may be
applicable, shall govern all elections conducted pursuant to this
chapter. Except as provided in subdivision (b), there shall be
prepared and included in the ballot material provided to each voter,
an impartial analysis pursuant to Section 9160 or 9280 of the
Elections Code, arguments and rebuttals, if any, pursuant to Sections
9162 to 9167, inclusive, and 9190 of the Elections Code or pursuant
to Sections 9281 to 9287, inclusive, and 9295 of the Elections Code.
   (b) If the vote is to be by the landowners of the proposed
district, analysis and arguments may be waived with the unanimous
consent of all the landowners and shall be so stated in the order for
the election. 
  SEC. 8.  Section 53395.22 of the Government Code is repealed.

   53395.22.  (a) If the election is to be conducted by mail ballot,
the election official conducting the election shall provide ballots
and election materials pursuant to subdivision (d) of Section 53326
and Section 53327, together with all supplies and instructions
necessary for the use and return of the ballot.
   (b) The identification envelope for return of mail ballots used in
landowner elections shall contain the following:
   (1) The name of the landowner.
   (2) The address of the landowner.
   (3) A declaration, under penalty of perjury, stating that the
voter is the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears on
the identification envelope.
   (4) The printed name and signature of the voter.
   (5) The address of the voter.
   (6) The date of signing and place of execution of the declaration
pursuant to paragraph (3).
   (7) A notice that the envelope contains an official ballot and is
to be opened only by the canvassing board. 
  SEC. 9.  Section 53395.23 of the Government Code is repealed.

   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 of the votes upon the question
of creating the district are in favor of creating the district.

  SEC. 10.  Section 53395.24 of the Government Code is repealed.

   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
the votes cast upon the question. 
  SEC. 11.  Section 53395.25 of the Government Code is repealed.

   53395.25.  The legislative body may submit a proposition to
establish or change the appropriations limit, as defined by
subdivision (h) of Section 8 of Article XIII B of the California
Constitution, of a district to the qualified electors of a proposed
or established district. The proposition establishing or changing the
appropriations limit shall become effective if approved by the
qualified electors voting on the proposition and shall be adjusted
for changes in the cost of living and changes in populations, as
defined by subdivisions (b) and (c) of Section 7901, except that the
change in population may be estimated by the legislative body in the
absence of an estimate by the Department of Finance, and in
accordance with Section 1 of Article XIII B of the California
Constitution. For purposes of adjusting for changes in population,
the population of the district shall be deemed to be at least one
person during each calendar year. Any election held pursuant to this
section may be combined with any election held pursuant to Section
53395.20 in any convenient manner. 
  SEC. 12.  Section 53396 of the Government Code is amended to read:
   53396.  Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the  ordinance  
resolution  adopted pursuant to Section  53395.23
  53395.20  to create the district, shall be
divided as follows:
   (a) That portion of the taxes which would be produced by the rate
upon which the tax is levied each year by or for each of the affected
taxing entities upon the total sum of the assessed value of the
taxable property in the district as shown upon the assessment roll
used in connection with the taxation of the property by the affected
taxing entity, last equalized prior to the effective date of the
 ordinance   resolution adopted pursuant to
Section  53395.23   53395.20  to create
the district, shall be allocated to, and when collected shall be paid
to, the respective affected taxing entities as taxes by or for the
affected taxing entities on all other property are paid.
   (b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which has agreed to participate pursuant to Section
53395.19 in excess of the amount specified in subdivision (a) shall
be allocated to, and when collected shall be paid into a special fund
of, the district for all lawful purposes of the district. Unless and
until the total assessed valuation of the taxable property in a
district exceeds the total assessed value of the taxable property in
the district as shown by the last equalized assessment roll referred
to in subdivision (a), all of the taxes levied and collected upon the
taxable property in the district shall be paid to the respective
affected taxing entities. When the district ceases to exist pursuant
to the adopted infrastructure financing plan, all moneys thereafter
received from taxes upon the taxable property in the district shall
be paid to the respective affected taxing entities as taxes on all
other property are paid.
  SEC. 13.  Section 53397.1 of the Government Code is amended to
read:
   53397.1.  The legislative body may, by majority vote, 
initiate proceedings to issue bonds   authorize the
issuance of bonds  pursuant to this chapter by adopting a
resolution  stating its intent to issue the bonds  .

  SEC. 14.  Section 53397.2 of the Government Code is amended to
read:
   53397.2.  The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
   (a) A description of the facilities to be financed with the
proceeds of the  proposed  bond issue.
   (b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the
 proposed  bond issuance.
   (c) The maximum interest rate and discount on the 
proposed  bond issuance. 
   (d) The date of the election on the proposed bond issuance and the
manner of holding the election.  
   (e) 
    (d)  A determination of the amount of tax revenue
available or estimated to be available, for the payment of the
principal of, and interest on, the bonds. 
   (f) 
    (e)  A finding that the amount necessary to pay the
principal of, and interest on, the  proposed  bond
issuance will be less than, or equal to, the amount determined
pursuant to subdivision  (e)   (d)  . 
   (f) The issuance of the bonds in one or more series.  
   (g) The date the bonds will bear.  
   (h) The denomination of the bonds.  
   (i) The form of the bonds.  
   (j) The manner and execution of the bonds.  
   (k) The medium of payment in which the bonds are payable. 

   (l) The place or manner of payment and any requirements for
registration of the bonds.  
   (m) The terms or call of redemption, with or without premium.

  SEC. 15.  Section 53397.4 of the Government Code is repealed.

   53397.4.  The clerk of the legislative body shall publish the
resolution adopted pursuant to Section 53397.1 once a day for at
least seven successive days in a newspaper published in the city or
county at least six days a week, or at least once a week for two
successive weeks in a newspaper published in the city or county less
than six days a week.
   If there are no newspapers meeting these criteria, the resolution
shall be posted in three public places within the territory of the
district for two succeeding weeks. 
  SEC. 16.  Section 53397.5 of the Government Code is repealed.

   53397.5.  The legislative body shall submit the proposal to issue
the bonds to the voters who reside within the district. The election
shall be conducted in the same manner as the election to create the
district pursuant to Section 53395. 20 and the two elections may be
consolidated. 
  SEC. 17.  Section 53397.6 of the Government Code is repealed.

   53397.6.  (a) The bonds may be issued if two-thirds 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. 18.  Section 53397.7 of the Government Code is repealed.

   53397.7.  If any proposition submitted to the voters pursuant to
this chapter is defeated by the voters, the legislative body shall
not submit, or cause to be submitted, a similar proposition to the
voters for at least one year after the first election.