Bill Text: CA AB1755 | 2009-2010 | Regular Session | Enrolled
Bill Title: Seismic Safety Finance Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB1755 Detail]
Download: California-2009-AB1755-Enrolled.html
BILL NUMBER: AB 1755 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 24, 2010
PASSED THE ASSEMBLY AUGUST 25, 2010
AMENDED IN SENATE AUGUST 19, 2010
AMENDED IN SENATE AUGUST 11, 2010
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN SENATE JUNE 1, 2010
AMENDED IN ASSEMBLY MAY 3, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Swanson
(Coauthor: Assembly Member Ma)
FEBRUARY 8, 2010
An act to add Sections 5898.15, 5898.23, and 5899 to the Streets
and Highways Code, relating to contractual assessments.
LEGISLATIVE COUNSEL'S DIGEST
AB 1755, Swanson. Seismic Safety Finance Act.
Existing law, the Improvement Act of 1911, authorizes the
legislative body of any public agency, as defined, to determine that
it would be convenient, advantageous, and in the public interest to
designate an area within the public agency, as specified, 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 or
energy or water efficiency improvements that are permanently fixed to
real property, as specified. Existing law requires the legislative
body to make these determinations by adopting a resolution indicating
its intention to do so and requires that the resolution include
specified information and directs an appropriate public agency
official to prepare a prescribed report.
This bill would enact the Seismic Safety Finance Act, which would
expand these provisions to also apply to contractual assessments to
finance the installation of seismic strengthening improvements, as
defined, that are permanently fixed to real property, as specified.
The bill would define "public agency," for purposes of financing the
installation of seismic strengthening improvements, to mean a city,
county, or city and county. The bill would also prohibit a public
agency from permitting a property owner to participate in a
contractual assessment program if the total amount of assessments and
taxes on the property exceeds 5% of the property's market value, as
specified. The bill would require the preliminary report issued in
connection with the contractual assessment program to include
criteria for determining the underwriting requirements, as well as
safeguards to be used to limit the total annual property tax and
assessments on the property, as specified.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares that Assembly Bill
1755 of the 2009-10 Regular Session shall be known as the Seismic
Safety Finance Act.
SEC. 2. Section 5898.15 is added to the Streets and Highways Code,
to read:
5898.15. (a) A public agency shall not permit a property owner to
participate in any program established pursuant to this chapter if
the owner's participation would result in the total amount of any
annual property taxes and assessments exceeding 5 percent of the
property's market value, as determined at the time of approval of the
owner's contractual assessment.
(b) Nothing in this chapter shall be construed to void or
otherwise release a property owner from the contractual obligations
incurred by a contractual assessment on a property, particularly in
the event that the total amount of annual property taxes and
assessments exceeds 5 percent of a property's market value after the
property owner has entered into a contractual assessment pursuant to
this chapter.
SEC. 3. Section 5898.23 is added to the Streets and Highways Code,
to read:
5898.23. For purposes of the report required pursuant to Section
5898.22, the statement of public agency policies required pursuant to
subdivision (c) of that section shall also include a brief
description of criteria for determining the underwriting
requirements, as well as safeguards that will be used to ensure that
the total annual property tax and assessments on the property will
not exceed 5 percent of the property's market value, as determined at
the time of approval for the owner's contractual assessment.
SEC. 4. Section 5899 is added to the Streets and Highways Code, to
read:
5899. (a) The Legislature finds and declares all of the
following:
(1) It is the intent of the Legislature to address seismic safety
needs throughout this state by permitting voluntary individual
efforts to improve the seismic safety of homes and buildings. The
Legislature further intends that this chapter should be used to
finance the installation of seismic strengthening improvements that
are permanently fixed to residential, commercial, industrial,
agricultural, or other real property, including, but not limited to,
the seismic strengthening of cripple walls and sill plate anchorage
of light, wood-framed buildings.
(2) The upfront cost of making residential, commercial,
industrial, agricultural, or other real property more seismically
safe prevents many property owners from making those improvements. To
make those improvements more affordable and to promote the
installation of those strengthening improvements, it is necessary to
authorize an alternative procedure for authorizing assessments to
finance the cost of seismic strengthening improvements.
(3) A public purpose will be served by a voluntary contractual
assessment program that provides the legislative body of any public
agency with the authority to finance the installation of seismic
strengthening improvements that are permanently fixed to residential,
commercial, industrial, agricultural, or other real property.
(b) For purposes of this section, the following terms shall have
the following meanings:
(1) For the purpose of financing the installation of seismic
strengthening improvements, "public agency" means a city, county, or
city and county. The definition of "city" in Section 5005 shall not
apply to this paragraph.
(2) "Seismic strengthening improvements" means permanent seismic
safety improvements fixed to residential, commercial, industrial,
agricultural, or other real property.
(c) The legislative body of any public agency may designate an
area, in the manner provided pursuant to Section 5898.20, within
which authorized public agency officials and property owners may
enter into voluntary contractual assessments to finance the
installation of seismic strengthening improvements that are
permanently fixed to real property pursuant to this chapter.
(d) For purposes of establishing a voluntary contractual
assessment program relating to seismic strengthening improvements,
the legislative body shall make the determinations required pursuant
to Section 5898.20 by adopting a resolution indicating its intention
to do so. The resolution of intention shall identify the kinds of
seismic strengthening improvements that may be financed and shall
include all of the information that is required pursuant to
subdivision (b) of Section 5898.20, including, but not limited to,
directing an appropriate public agency official to prepare a report
pursuant to Section 5898.22.
(e) For purposes of the report required pursuant to Section
5898.22, relating to a voluntary contractual assessment program for
seismic strengthening improvements, the designated public agency
official shall satisfy the requirements of paragraph (1) of
subdivision (c) of Section 5898.22 by identifying the types of
seismic strengthening improvements that may be financed through the
use of contractual assessments.
(f) 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 seismic strengthening 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 seismic strengthening improvements and to contract
directly for the installation of seismic strengthening improvements
that are permanently fixed to the property owner's residential,
commercial, industrial, agricultural, or other real property.
