Bill Text: CA SB214 | 2011-2012 | Regular Session | Enrolled
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-Enrolled.html
BILL NUMBER: SB 214 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 30, 2012
PASSED THE ASSEMBLY AUGUST 29, 2012
AMENDED IN ASSEMBLY AUGUST 24, 2012
AMENDED IN ASSEMBLY AUGUST 6, 2012
AMENDED IN ASSEMBLY JUNE 18, 2012
AMENDED IN ASSEMBLY JUNE 21, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator Wolk
(Coauthors: Assembly Members Alejo, Ma, and Williams)
FEBRUARY 8, 2011
An act to amend Sections 53395, 53395.1, 53395.2, 53395.3,
53395.4, 53395.5, 53395.6, 53395.7, 53395.10, 53395.11, 53395.12,
53395.13, 53395.14, 53395.16, 53395.17, 53395.19, 53395.20, 53396,
53397.1, and 53397.2 of, to repeal Sections 53395.22, 53395.23,
53395.24, 53395.25, 53397.4, 53397.5, 53397.6, and 53397.7 of, and to
repeal and add Section 53395.21 of, the Government Code, relating to
infrastructure financing districts.
LEGISLATIVE COUNSEL'S DIGEST
SB 214, 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.
Existing law authorizes an infrastructure financing district to fund
infrastructure projects through tax increment financing, pursuant to
the infrastructure financing plan and agreement of affected taxing
entities, as defined.
This bill would revise and recast the provisions governing
infrastructure financing districts. The bill would eliminate the
requirement of voter approval for creation of the district and for
bond issuance and authorize the legislative body to create the
district, subject to specified procedures. The bill would instead
authorize a newly created public financing authority, consisting of 5
members, 3 of whom are members of the city council or board of
supervisors that established the district, and 2 of whom are members
of the public, to adopt the infrastructure financing plan, subject to
approval by the legislative body, and issue bonds by majority vote
of the authority by resolution. The bill would authorize a public
financing authority to enter into joint powers agreements with
affected taxing entities with regard to nontaxing authority or powers
only. The bill would authorize a district to finance specified
actions and projects and prohibit the district from providing
financial assistance to a vehicle dealer or big box retailer, as
defined. The bill would create a public accountability committee, as
specified, to review the actions of the public financing authority.
(2) Existing law requires that an infrastructure financing plan
created by a legislative body 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 public financing authority adopted the
resolution adopting the infrastructure financing plan. The bill would
also impose additional reporting requirements after the adoption of
an infrastructure financing plan.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53395 of the Government Code is amended to
read:
53395. (a) The Legislature finds and declares that the state and
federal governments have withdrawn in whole or in part from their
former role in financing infrastructure, including highways and
interchanges, sewage treatment and water reclamation works, water
supply and treatment works, flood control and drainage works,
schools, libraries, parks, parking facilities, open space, and
seismic retrofit and rehabilitation of public facilities.
(b) The Legislature further finds and declares that the methods
available to local agencies to finance public works often place an
undue and unfair burden on buyers of new homes, especially for public
works that benefit the broader community.
(c) The Legislature further finds and declares that the absence of
practical and equitable methods for financing public works leads to
a declining standard of public works, a reduced quality of life and
decreased safety for affected citizens, increased objection to
otherwise desirable development, and excessive costs for homebuyers.
(d) The Legislature further finds and declares that because
California's disadvantaged communities, as defined in Section 75005
of the Public Resources Code, may not be beneficiaries of quality
public works, these communities are neglected and, thus, isolated
from and deprived of the basic facilities needed for public health
and safety.
(e) The Legislature further finds and declares that it is
equitable and in the public interest to provide alternative
procedures for financing public works and services needed to meet the
needs of new housing, disadvantaged communities, and other
development projects.
(f) The Legislature further finds and declares that it is in the
public interest to develop a mechanism that allows public agencies to
jointly dedicate their revenues to projects that support sustainable
communities.
(g) The Legislature further finds and declares that infrastructure
financing districts implement and fulfill the intent of Article 2
(commencing with Section 53395.10) and of Article XIII B of the
California Constitution and is consistent with the conclusion of
California courts that tax increment revenues are not "proceeds of
taxes" for purposes of Article XIII B of the California Constitution.
The allocation and payment to a district of the portion of taxes
specified in this section for the purpose of paying principal of, or
interest on, loans, advances, or indebtedness incurred for facilities
or the cost of acquisition and construction of facilities under this
section shall not be deemed the receipt by a district of proceeds of
taxes levied by or on behalf of the district within the meaning or
for the purposes of Article XIII B of the California Constitution,
nor shall this portion of taxes be deemed receipt of proceeds of
taxes by, or an appropriation subject to limitation of, any other
public body within the meaning or for the purposes of Article XIII B
of the California Constitution or any statutory provision enacted in
the implementation of Article XIII B of the California Constitution.
The allocation and payment to a district of this portion of taxes
shall not be deemed the appropriation by a district of proceeds of
taxes levied by or on behalf of a district within the meaning or for
the purposes of Article XIII B of the California Constitution.
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
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 financing district.
(2) An infrastructure financing district is a "district" within
the meaning of Section 1 of Article XIII A of the California
Constitution.
(f) "Infrastructure financing district" means a legally
constituted public and corporate governmental entity separate and
distinct from the city that established it pursuant to this chapter
for the sole purpose of financing public facilities. An
infrastructure financing district shall be a "local agency" for
purposes of Chapter 9 (commencing with Section 54950).
(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.
(i) "Public financing authority" means the legislative body of the
infrastructure financing district established pursuant to this
chapter. The public financing authority shall be comprised of five
people, three of whom shall be members of the city council or board
of supervisors that established the district pursuant to this chapter
and two of whom shall be public members. The three members of the
city council or board of supervisors shall appoint the two public
members in accordance with Chapter 11 (commencing with Section 54970)
of Part 1 of Division 2 of Title 5.
(j) "Public capital facilities of communitywide significance"
means facilities that benefit all areas within the district or serve
or are made available to those areas.
SEC. 3. Section 53395.2 of the Government Code is amended to read:
53395.2. (a) The revenues available pursuant to Article 3
(commencing with Section 53396) may be used directly for work allowed
pursuant to Section 53395.3, may be accumulated for a period not to
exceed five years to provide a fund for that work, may be pledged to
pay the principal of, and interest on, bonds issued pursuant to
Article 4 (commencing with Section 53397), or may be pledged to pay
the principal of, and interest on, bonds issued pursuant to the
Improvement Bond Act of 1915 (Division 10 (commencing with Section
8500) of the Streets and Highways Code) or the Mello-Roos Community
Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)),
the proceeds of which have been or will be used entirely for
allowable purposes of the district. The revenue of the district may
also be advanced for allowable purposes of the district to an
integrated financing district established pursuant to Chapter 1.5
(commencing with Section 53175), in which case the district may be a
party to a reimbursement agreement established pursuant to that
chapter. The revenues of the district may also be committed to paying
for any completed public facility acquired pursuant to Section
53395.3 over a period of time, including the payment of a rate of
interest not to exceed the bond buyer index rate on the day that the
agreement to repay is entered into by the district.
(b) The public financing authority may enter into an agreement
with any affected taxing entity providing for the construction of, or
assistance in, financing activities pursuant to Section 53395.3.
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 that satisfies the
requirements of subdivision (b), (2) may finance planning and design
work that is directly related to the purchase, construction,
expansion, or rehabilitation of that property, (3) the costs
described in Sections 53395.5 and 53396.5, and (4) may contribute to
the cost of maintaining facilities that are financed pursuant to
subdivision (b). 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. Except as specifically
provided in this section, a district shall not finance routine
maintenance, repair work, or the costs of ongoing operation or
providing services of any kind. A district shall not compensate the
members of the legislative body of the city or the district for any
activities undertaken pursuant to this chapter.
(b) The district shall finance only structural or nonstructural
public capital facilities of communitywide significance, including,
but not limited to, 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 management, including levees, bypasses, dams, retention
basins, and drainage channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, open space, and habitat
restoration.
(8) Facilities for the transfer and disposal of solid waste,
including transfer stations and vehicles.
(c) The district shall be a local agency within the meaning of
subdivision (d) of Section 33459 of the Health and Safety Code and
may finance any actions necessary to implement 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).
(d) The district may finance any project that implements a transit
priority project pursuant to Section 65470, regional transportation
plan, or other projects that are consistent with the general use
designation, density, building intensity, and applicable policies
specified for the project area in either a sustainable communities
strategy or an alternative planning strategy, for which the State Air
Resources Board, pursuant to Chapter 2.5 (commencing with Section
65080) of Division 2 of Title 7, has accepted a metropolitan planning
organization's determination that the sustainable communities
strategy or the alternative planning strategy would, if implemented,
achieve the greenhouse gas emission reduction targets.
(e) Any district 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.
(f) Projects financed pursuant to this section that involve
construction, alteration, demolition, installation, or repair work
and dwelling units constructed by a district pursuant to this
section, shall be subject to Chapter 1 (commencing with Section 1720)
of Part 7 of Division 2 of the Labor Code.
SEC. 5. Section 53395.4 of the Government Code is amended to read:
53395.4. (a) A district shall not provide any form of financial
assistance to a vehicle dealer or a big box retailer, or a business
entity that sells or leases land to a vehicle dealer or big box
retailer, that is relocating from the territorial jurisdiction of one
local agency to the territorial jurisdiction of another local
agency, but within the same market area, as those terms are used in
Section 53084.
(b) A district may finance only the facilities authorized in this
chapter to the extent that the facilities are in addition to those
provided in the territory of the district before the district was
created. The additional facilities may not supplant facilities
already available within that territory when the district was created
but may supplement, rehabilitate, upgrade, or make more sustainable
those facilities.
(c) A district may include areas that are not contiguous.
SEC. 6. Section 53395.5 of the Government Code is amended to read:
53395.5. It is the intent of the Legislature that 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. 7. 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, shall be commenced within 30 days after the date the
legislative body adopted the resolution adopting the infrastructure
financing 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. 8. 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 the date the public financing
authority 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. 9. Section 53395.10 of the Government Code is amended to
read:
53395.10. A legislative body of a city may designate one or more
proposed infrastructure financing districts pursuant to this chapter.
Proceedings for the establishment of a district shall be instituted
by the adoption of a resolution of intention to establish the
proposed district and shall do all of the following:
(a) State that an infrastructure financing district is proposed to
be established under the terms of this chapter and describe the
boundaries of the proposed district, which may be accomplished by
reference to a map on file in the office of the clerk of the city.
(b) State the type of public facilities and development proposed
to be financed or assisted by the district in accordance with Section
53395.3.
(c) State the need for the district and the goals the district
proposes to achieve.
(d) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district, if approved
by resolution pursuant to Section 53395.19, may be used to implement
the plan adopted pursuant to Section 53395.14.
(e) Fix a time and place for a public hearing on the proposal.
SEC. 10. Section 53395.11 of the Government Code is amended to
read:
53395.11. The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district and to each affected taxing entity.
SEC. 11. Section 53395.12 of the Government Code is amended to
read:
53395.12. (a) The legislative body shall direct the clerk to post
a copy of the resolution of intention to create the district in an
easily identifiable and accessible location on the legislative body's
Internet Web site.
(b) At the conclusion of the public hearing scheduled pursuant to
subdivision (e) of Section 53395.10, the legislative body of the city
may adopt a resolution establishing the infrastructure financing
district based upon a finding that (1) the goals of the district are
consistent with the general plan; and (2) the financing programs
undertaken by the district are an efficient means of implementing the
goals of the district.
SEC. 12. Section 53395.13 of the Government Code is amended to
read:
53395.13. After adopting the resolution pursuant to Section
53395.12, the legislative body shall send a copy of the resolution to
the public financing authority. Upon receipt of the resolution, the
public financing authority shall designate and direct the city
engineer or other appropriate official to prepare an infrastructure
plan pursuant to Section 53395.14.
SEC. 13. Section 53395.14 of the Government Code is amended to
read:
53395.14. 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, or assistance, that
benefits or serves the development 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) If funding from affected taxing entities is incorporated into
the financing plan, a finding that the public facilities 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
property tax revenue of the city and of each affected taxing entity,
if any, 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 that 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 40 years from the date the public financing authority
adopted the resolution adopting the infrastructure financing 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.
(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 and additional expenses
related to the project or the developer of a project that implements
a transit priority 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.
(f) The goals the district proposes to achieve by financing public
facilities.
(g) The goals the district proposes to achieve by assisting the
development described in paragraph (8) of subdivision (d).
(h) If funding from affected taxing entities is included in the
plan, the creation of the public accountability committee, pursuant
to Section 53395.21.
SEC. 14. Section 53395.16 of the Government Code is amended to
read:
53395.16. The designated official shall consult with the city and
each affected taxing entity, and, at the request of any affected
taxing entity, shall meet with representatives of an affected taxing
entity. Any affected taxing entity may suggest revisions to the plan.
SEC. 15. Section 53395.17 of the Government Code is amended to
read:
53395.17. The public financing authority shall conduct a public
hearing prior to adopting the proposed infrastructure financing plan.
The public hearing shall be called no sooner than 60 days after the
plan has been sent to each affected taxing entity. In addition to the
notice given to landowners and affected taxing entities pursuant to
Sections 53395.11 and 53395.12, notice of the public hearing shall be
given by publication not less than once a week for four successive
weeks in a newspaper of general circulation published in the city in
which the proposed district is located. The notice shall state that
the district will be used to finance public works, briefly describe
the public works, briefly describe the proposed financial
arrangements, including the proposed commitment of incremental tax
revenue, describe the boundaries of the proposed district and state
the day, hour, and place when and where any persons having any
objections to the proposed infrastructure financing plan, or the
regularity of any of the prior proceedings, may appear before the
public financing authority and object to the adoption of the proposed
plan by the public financing authority.
SEC. 16. Section 53395.19 of the Government Code is amended to
read:
53395.19. (a) The public financing authority shall not enact a
resolution approving a financing plan that provides 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 that is proposed to be subject to division of taxes pursuant
to Article 3 (commencing with Section 53396) has been filed with the
public financing authority at or prior to the time of the hearing.
(b) In the case of an affected taxing entity that is a special
district that provides fire protection services and where the county
board of supervisors is the governing authority or has appointed
itself as the governing board of the district, the plan shall be
adopted by a separate resolution approved by the district's governing
authority or governing board.
(c) Nothing in this section shall be construed to prevent the
public financing authority from amending its infrastructure financing
plan and adopting a resolution forming the infrastructure financing
district without allocation of the tax revenues of any affected
taxing entity that has not approved the infrastructure financing plan
by resolution of the governing body of the affected taxing entity.
(d) A public financing authority may enter into a joint powers
agreement pursuant to Section 6500 with an affected taxing entity to
carry out the purposes of this chapter with regard to nontaxing
authority or powers only.
(e) An
infrastructure financing plan that provides for the division of taxes
of any affected taxing entity shall not be implemented until the
date on which the public accountability committee is created pursuant
to Section 53395.21.
SEC. 17. 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 public financing authority may adopt a
resolution adopting the infrastructure financing plan, as modified,
and approving the formation of the infrastructure financing district
in a manner consistent with Sections 53395.10 and 53395.19, or it may
abandon the proceedings. The public financing authority shall
forward a copy of the plan to the legislative body to review and
approve the financing section of the plan described in subdivision
(d) of Section 53395.14. The infrastructure financing plan shall not
take effect until approved by the legislative body.
(b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the public financing authority shall
direct the clerk of the legislative body to mail an annual report to
each owner of land within the district and each affected taxing
entity. The public financing authority shall direct the clerk of the
legislative body to post this 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:
(1) A summary of the district's expenditures.
(2) A description of the progress made towards the district's
adopted goals.
(3) An assessment of the status regarding completion of the
district's public works projects.
(c) If the district fails to provide the annual report required by
subdivision (b), the district shall not spend any funds to construct
public works projects until the annual report is submitted.
(d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public works
projects; provided, however, the district may complete any public
works projects that it had started. Any excess property tax increment
revenues that had been allocated for new public works projects shall
be reallocated to the affected taxing entities.
SEC. 18. Section 53395.21 of the Government Code is repealed.
SEC. 19. Section 53395.21 is added to the Government Code, to
read:
53395.21. (a) If an infrastructure financing plan contains a
provision that provides for the division of taxes of any affected
taxing entity, a public accountability committee shall be established
pursuant to this section.
(b) A public accountability committee shall be comprised of a
representative of each affected taxing entity that has agreed to the
division of its taxes, a representative of the public financing
authority, and one or more public members.
(c) The legislative body of each affected taxing entity and the
legislative body of the public financing authority shall each appoint
one of its members, or their designee, to the public accountability
committee. Those persons appointed pursuant to this subdivision
shall, by lot, appoint one or more public members to ensure that the
public accountability committee consists of an odd number of members
for voting purposes.
(d) All meetings with the public accountability committee shall be
noticed in accordance with Section 54956.
(e) The purposes of the public accountability committee shall be
to conduct or have conducted an annual performance review and an
annual independent financial review of the public financing
authority. The costs of the audits required pursuant to this
subdivision shall be paid from revenues of the public financing
authority.
SEC. 20. Section 53395.22 of the Government Code is repealed.
SEC. 21. Section 53395.23 of the Government Code is repealed.
SEC. 22. Section 53395.24 of the Government Code is repealed.
SEC. 23. Section 53395.25 of the Government Code is repealed.
SEC. 24. 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 resolution adopted pursuant to
Section 53395.20 to create the district, shall be divided as follows:
(a) That portion of the taxes that 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
resolution adopted pursuant to Section 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 that 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. 25. Section 53397.1 of the Government Code is amended to
read:
53397.1. The public financing authority may, by majority vote,
authorize the issuance of bonds pursuant to this chapter by adopting
a resolution.
SEC. 26. 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 bond issue.
(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the bond
issuance.
(c) The maximum interest rate and discount on the bond issuance.
(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.
(e) A finding that the amount necessary to pay the principal of,
and interest on, the bond issuance will be less than, or equal to,
the amount determined pursuant to subdivision (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. 27. Section 53397.4 of the Government Code is repealed.
SEC. 28. Section 53397.5 of the Government Code is repealed.
SEC. 29. Section 53397.6 of the Government Code is repealed.
SEC. 30. Section 53397.7 of the Government Code is repealed.
