Bill Text: CA SB614 | 2013-2014 | Regular Session | Amended

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

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Bill Title: Local government: jurisdictional changes: infrastructure financing.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State. Chapter 784, Statutes of 2014. [SB614 Detail]

Download: California-2013-SB614-Amended.html

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BILL NUMBER: SB 614	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 16, 2014
	AMENDED IN ASSEMBLY  JUNE 9, 2014
	AMENDED IN ASSEMBLY  AUGUST 6, 2013
	AMENDED IN ASSEMBLY  JUNE 4, 2013

INTRODUCED BY   Senator Wolk

                        FEBRUARY 22, 2013

   An act to amend Section 56653 of the Government Code, and to add
Section 99.3 to the Revenue and Taxation Code, relating to local
government.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 614, as amended, Wolk. Local government: jurisdictional
changes: infrastructure financing.
   Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, provides the authority and procedures for
the initiation, conduct, and completion of changes of organization
and reorganization of cities and districts. The act requires a local
agency or school district that initiates proceedings for a change of
local government organization or reorganization by submitting a
resolution of application to a local agency formation commission to
also submit a plan for providing services within the affected
territory, as specified.
   This bill would instead require, if a proposal for a change of
organization or reorganization is submitted to a local commission,
that the applicant submit a plan for providing services within the
affected territory. The bill would, in the case of a change of
organization  or reorganization initiated by a local agency and
consented to by each affected agency,  that includes a
disadvantaged, unincorporated community, authorize a local agency to
include in its resolution of application a plan to improve or upgrade
structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community
and would authorize the local  agency formation  commission
to amend the proposal to include the formation of a special district,
as specified.
   Existing law requires a county auditor, in the case of a
jurisdictional change caused by the formation of a district, to
adjust the allocation of property tax revenue pursuant to the
agreement of  , for  local agencies whose service
area or service responsibility would be altered by the jurisdictional
change, as specified.
   This bill would authorize a local agency that files a petition for
change of organization, and one or more other local agencies that
will improve or upgrade structures to serve a disadvantaged,
unincorporated community, to agree on a plan for financing services
and structures that may provide that taxes, levied upon taxable
property in the area included within the territory each year by or
for the benefit of the local agency and one or more other local
agencies that consent to the plan, be divided between the respective
affected local agencies and the special district. This bill would
require the plan to include a date on which that division of taxes
shall terminate, and would allow the plan to provide for the issuance
of indebtedness, as specified. The bill would prohibit any plan
developed under these provisions from resulting in a reduction of
property tax revenues to school entities.
   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.  It is the intent of the Legislature to provide
additional options for financing infrastructure that can be
incorporated into the approval of an annexation of a disadvantaged,
unincorporated community.
  SEC. 2.  Section 56653 of the Government Code is amended to read:
   56653.  (a) If a proposal for a change of organization or
reorganization is submitted pursuant to this part, the applicant
shall submit a plan for providing services within the affected
territory.
   (b) The plan for providing services shall include all of the
following information and any additional information required by the
commission or the executive officer:
   (1) An enumeration and description of the services to be extended
to the affected territory.
   (2) The level and range of those services.
   (3) An indication of when those services can feasibly be extended
to the affected territory.
   (4) An indication of any improvement or upgrading of structures,
roads, sewer or water facilities, or other conditions the local
agency would impose or require within the affected territory if the
change of organization or reorganization is completed.
   (5) Information with respect to how those services will be
financed.
   (c) Only in the case of a change of organization or reorganization
 initiated by a local agency and consented to by each affected
agency,  that includes a disadvantaged, unincorporated community
as defined in Section 56033.5:
   (1) A local agency may include in its resolution of application
for change of organization or reorganization a plan adopted pursuant
to Section 99.3 of the Revenue and Taxation Code to improve or
upgrade structures, roads, sewer or water facilities, or other
infrastructure to serve the disadvantaged, unincorporated community
through the formation of a special  district.  
district or reorganization of a special district with the special
district's consent. 
   (2) If a local agency includes a plan pursuant to paragraph (1), a
 commission may, subject to paragraph (3), amend the
petition   local agency formation commission may amend
the proposal  for a change of organization or reorganization to
include the formation of a special  district,  
district or reorganization of a special district with the special
district's consent,  including, but not limited to, a community
services district, municipal water district, or sanitary district, to
provide financing to improve or upgrade structures, roads, sewer or
water facilities, or other infrastructure to serve the disadvantaged,
unincorporated community, in conformity with the requirements of the
principal act of the district proposed to be formed  and all
required formation   proc   eedings  .

   (3) Consistent with paragraph (3) of subdivision (a) of Section
56375, a commission may initiate the formation of a special district
only if a request to form a special district is made by a local
agency pursuant to paragraph (1).  
   (d) Nothing in this section precludes a local agency formation
commission from considering any other options or exercising its
powers under Section 56375. 
  SEC. 3.  Section 99.3 is added to the Revenue and Taxation Code, to
read:
   99.3.  (a) The plan for financing services that is included in a
petition for change of organization or reorganization filed by a
local agency  and cons   ented to by each affected
agency,  pursuant to Section 56653 of the Government Code for a
disadvantaged, unincorporated community may include a plan adopted
pursuant to this section.
   (b) For purposes of this section, the following definitions apply:

   (1) "Local agency" means a local agency as defined by subdivision
(a) of Section 95, and does not include any school entity as defined
in subdivision (f) of Section 95.
   (2) "Affected local agency" means a local agency that has adopted
a resolution of its governing  board   body
 consenting to the plan developed pursuant to this section.
   (3) "Territory" means all or part of the land that is included in
the petition for change of organization or reorganization filed by
the local agency.
   (4) "Certificate of completion" is defined as provided in Section
56020.5 of the Government Code.
   (5) "Disadvantaged, unincorporated community" is defined as
provided in Section 56033.5 of the Government Code.
   (c) A local agency that files a  petition for 
 resolution of application for a  change of organization or
reorganization, and one or more other local agencies that will
improve or upgrade structures to serve a disadvantaged,
unincorporated community subject to that petition, may agree on a
plan for financing services and structures pursuant to this section.
   (d) The plan agreed upon pursuant to subdivision (c) may contain a
provision that taxes levied upon taxable property in the area
included within the territory each year by or for the benefit of the
local agency and one or more other local agencies that consent to the
plan, be divided as follows:
   (1) That portion of the taxes that would have been produced by the
rate upon which the tax is levied each year by or for each of the
affected local agencies upon the total sum of the assessed value of
the taxable property in the territory as shown upon the assessment
roll used in connection with the taxation of the property by the
affected local agency, last equalized prior to the effective date of
the certification of completion, and that portion of taxes by or for
each school entity, shall be allocated to, and when collected shall
be paid to, the respective affected local agencies and school
entities as taxes by or for the affected local agencies and school
entities on all property are paid.
   (2) 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 this
section, in excess of the amount specified in paragraph (1), shall be
allocated to, and when collected shall be paid into a special fund
of a special district formed  or reorganized with the special
district's consent  pursuant to subdivision (c) of Section 56653
of the Government Code that will finance the infrastructure
improvements to serve the disadvantaged, unincorporated community.
   (e) A plan adopted pursuant to this section shall specify a date
upon which the division of taxes described in subdivision (d) shall
terminate.
   (f) A plan adopted pursuant to this section may include a
provision for the issuance of indebtedness. Any indebtedness shall be
issued in conformity with Articles 4.5 (commencing with Section
53506) and 5 (commencing with Section 53510) of Chapter 3 of Part 1
of Division 2 of Title 5 of the Government Code or the principal act
of the special district.
   (g) Any plan adopted under this section shall not result in a
reduction of property tax revenues allocated to any school entity as
defined in subdivision (f) of Section 95.