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

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-Enrolled.html

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BILL NUMBER: SB 614	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 25, 2014
	PASSED THE ASSEMBLY  AUGUST 20, 2014
	AMENDED IN ASSEMBLY  AUGUST 18, 2014
	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
   (Coauthors: Assembly Members Alejo and Waldron)

                        FEBRUARY 22, 2013

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


	LEGISLATIVE COUNSEL'S DIGEST


   SB 614, Wolk. Local government: jurisdictional changes:
infrastructure financing.
   (1) 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 that, until January 1, 2025, in the case of a
change of organization or reorganization initiated by a local agency
that includes a disadvantaged, unincorporated community, authorizes a
local agency to include in its resolution of application an
annexation development plan to improve or upgrade structures, roads,
sewer or water facilities, or other infrastructure to serve the
disadvantaged, unincorporated community. This bill would authorize
the local agency formation commission to approve the proposal to
include the formation of a special district or reorganization of a
special district, as specified. This bill would require an annexation
plan to include certain information.
   (2) 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 local agencies whose service area or service
responsibility would be altered by the jurisdictional change, as
specified.
   This bill would, until January 1, 2025, authorize a local agency
that files a resolution of application 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 an annexation development 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 as specified. 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 including any portion of a
redevelopment project area, as specified, or resulting in a reduction
of property tax revenues to school entities.


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
considered by local agencies and the local agency formation
commission when evaluating the proposal for 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) (1) In the case of a change of organization or reorganization
initiated by a local agency that includes a disadvantaged,
unincorporated community as defined in Section 56033.5, a local
agency may include in its resolution of application for change of
organization or reorganization an annexation development 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 or reorganization of one
or more existing special districts with the consent of each special
district's governing body.
   (2) The annexation development plan submitted pursuant to this
subdivision shall include information that demonstrates that the
formation or reorganization of the special district will provide all
of the following:
   (A) The necessary financial resources to improve or upgrade
structures, roads, sewer, or water facilities or other
infrastructure. The annexation development plan shall also clarify
the local entity that shall be responsible for the delivery and
maintenance of the services identified in the application.
   (B) An estimated timeframe for constructing and delivering the
services identified in the application.
   (C) The governance, oversight, and long-term maintenance of the
services identified in the application after the initial costs are
recouped and the tax increment financing terminates.
   (3) If a local agency includes an annexation development plan
pursuant to this subdivision, a local agency formation commission may
approve the proposal for a change of organization or reorganization
to include the formation of a special 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
proceedings.
   (4) Pursuant to Section 56881, the commission shall include in its
resolution making determinations a description of the annexation
development plan, including, but not limited to, an explanation of
the proposed financing mechanism adopted pursuant to Section 99.3 of
the Revenue and Taxation Code, including, but not limited to, any
planned debt issuance associated with that annexation development
plan.
   (d) This section shall not preclude a local agency formation
commission from considering any other options or exercising its
powers under Section 56375.
   (e) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.
  SEC. 3.  Section 56653 is added to the Government Code, 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) This section shall become operative on January 1, 2025.
  SEC. 4.  Section 99.3 is added to the Revenue and Taxation Code, to
read:
   99.3.  (a) The plan for financing services that is included with a
resolution of application for change of organization or
reorganization filed by a local agency pursuant to Section 56653 of
the Government Code for a disadvantaged, unincorporated community may
include an annexation development plan that has been adopted
pursuant to subdivision (c).
   (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) "Consenting local agency" means a local agency that has
adopted a resolution of its governing body consenting to the
annexation development plan.
   (3) "Territory" means all or part of the land that is included in
the resolution of application 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 resolution of application for a
change of organization or reorganization, and one or more other
consenting local agencies that will improve or upgrade structures to
serve a disadvantaged, unincorporated community subject to that
resolution of application, may agree on an annexation development
plan for financing services and structures pursuant to this section.
   (d) The annexation development 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
consenting local agencies that consent to the annexation development
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
consenting 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
consenting 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 consenting local agencies and school
entities as taxes by or for the consenting local agencies and school
entities on all property are paid.
   (2) That portion of the levied taxes each year specified in the
annexation development plan adopted pursuant to subdivision (c) for
the city and each consenting local agency 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, including, but not limited
to, water, wastewater, and stormwater systems and local streets,
roads, and sidewalks, to serve the disadvantaged, unincorporated
community. A consenting local agency may advance funds to the special
district that is formed or reorganized pursuant to paragraph (2) of
subdivision (c) of Section 56653 of the Government Code. The special
district shall use those advanced funds solely for the purposes
specified in the annexation development plan adopted pursuant to
subdivision (c) and shall repay the consenting local agency with
revenue from the taxes received pursuant to this subdivision.
   (e) An annexation development plan adopted pursuant to subdivision
(c) shall specify a date upon which the division of taxes described
in subdivision (d) shall terminate.
   (f) An annexation development plan adopted pursuant to subdivision
(c) 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) An annexation development plan adopted pursuant to subdivision
(c) shall not result in a reduction of property tax revenues
allocated to any school entity as defined in subdivision (f) of
Section 95.
   (h) Any plan adopted pursuant to this section shall not include
any portion of a redevelopment project area which is or has been
previously created pursuant to Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code.
   (i) This section shall remain in effect only until January 1,
2025, and as of that date is repealed.