Bill Text: CA AB1755 | 2009-2010 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: AB 1755	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2010
	AMENDED IN ASSEMBLY  MAY 3, 2010
	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 8, 2010

   An act to amend Sections 5898.12, 5898.14, 5898.20, 5898.21, and
5898.22 of the Streets and Highways Code, relating to contractual
assessments.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1755, as amended, 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 declare the intent of the Legislature in regard to these
provisions.
   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.  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 5898.12 of the Streets and Highways Code is
amended to read:
   5898.12.  (a) It is the intent of the Legislature that this
chapter should be used to finance public improvements to lots or
parcels which are developed and where the costs and time delays
involved in creating an assessment district pursuant to other
provisions of this division or any other law would be prohibitively
large relative to the cost of the public improvements to be financed.

   (b) It is also the intent of the Legislature that this chapter
should be used to finance the installation of distributed generation
renewable energy sources or energy efficiency improvements that are
permanently fixed to residential, commercial, industrial,
agricultural, or other real property.
   (c) It is also the intent of the Legislature to address chronic
water needs throughout California by permitting voluntary individual
efforts to improve water efficiency. The Legislature further intends
that this chapter should be used to finance the installation of water
efficiency improvements that are permanently fixed to residential,
commercial, industrial, agricultural, or other real property,
including, but not limited to, recycled water connections, synthetic
turf, cisterns for stormwater recovery, and permeable pavement.
   (d) It is also the intent of the Legislature to address seismic
safety needs throughout California 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.
   (e) It is also the intent of the Legislature that a public agency
in the process of establishing an assessment program, to the extent
feasible, use a good faith effort to provide advance notice of the
proposed program to water and electric service providers in the
relevant service area, as set forth in Section 5898.24, to allow the
most efficient coordination and collaboration between the public
agency and water and electric service providers.
   (f) This chapter shall not be used to finance facilities for
parcels which are undergoing development.
   (g) This chapter shall not be used to finance the purchase or
installation of appliances that are not permanently fixed to
residential, commercial, industrial, agricultural, or other real
property.
   (h) Assessments may be levied pursuant to this chapter only with
the free and willing consent of the owner of each lot or parcel on
which an assessment is levied at the time the assessment is levied.
  SEC. 3.  Section 5898.14 of the Streets and Highways Code is
amended to read:
   5898.14.  (a) The Legislature finds all of the following:
   (1) Energy and water conservation efforts, including the promotion
of energy efficiency improvements to residential, commercial,
industrial, agricultural, or other real property are necessary to
address the issue of global climate change.
   (2) The upfront cost of making residential, commercial,
industrial, agricultural, or other real property more energy and
water efficient prevents many property owners from making those
improvements. To make those improvements more affordable and to
promote the installation of those improvements, it is necessary to
authorize an alternative procedure for authorizing assessments to
finance the cost of energy and water efficiency improvements.
   (3) 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.
   (b) The Legislature declares that 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 distributed generation renewable energy sources,
energy or water efficiency improvements, or seismic strengthening
improvements that are permanently fixed to residential, commercial,
industrial, agricultural, or other real property.
  SEC. 4.  Section 5898.20 of the Streets and Highways Code is
amended to read:
   5898.20.  (a) (1) The legislative body of any public agency may
determine that it would be convenient and advantageous to designate
an area within the public agency, which may encompass the entire
public agency or a lesser portion, within which authorized public
agency officials and property owners may enter into voluntary
contractual assessments for public improvements and to make financing
arrangements pursuant to this chapter.
   (2) The legislative body of any public agency may also determine
that it would be convenient, advantageous, and in the public interest
to designate an area within the public agency, which may encompass
the entire public agency or a lesser portion, 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, energy or water efficiency
improvements, or seismic strengthening improvements that are
permanently fixed to real property pursuant to this chapter.
   (b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so. The
resolution of intention shall include a statement that the public
agency proposes to make voluntary contractual assessment financing
available to property owners, shall identify the kinds of public
works, distributed generation renewable energy sources, energy or
water efficiency improvements, or seismic strengthening improvements
that may be financed, shall describe the boundaries of the area
within which voluntary contractual assessments may be entered into,
and shall briefly describe the proposed arrangements for financing
the program, including a brief description of criteria for
determining the creditworthiness of a property owner. The resolution
of intention shall state that it is in the public interest to finance
the installation of distributed generation renewable energy sources,
energy or water efficiency improvements, seismic strengthening
improvements, or any combination thereof, pursuant to paragraph (2)
of subdivision (a), if applicable. The resolution shall state that a
public hearing should be held at which interested persons may object
to or inquire about the proposed program or any of its particulars,
and shall state the time and place of the hearing. The resolution
shall direct an appropriate public agency official to prepare a
report pursuant to Section 5898.22 and to enter into consultations
with the county auditor's office or county controller's office in
order to reach agreement on what additional fees, if any, will be
charged to the city or county for incorporating the proposed
voluntary contractual assessments into the assessments of the general
taxes of the city or county on real property.
   (c) As used in this chapter, each of the following terms shall
have the following meaning:
   (1) "Efficiency improvements" means permanent improvements fixed
to residential, commercial, industrial, agricultural, or other real
property.
   (2) "Legislative body" means the governing body of a public
agency.
   (3) (A) For the purpose of financing the installation of water
efficiency improvements, "public agency" means a city, county, city
and county, municipal utility district, community services district,
sanitary district, sanitation district, or water district, as defined
in Section 20200 of the Water Code. The definition of "city" in
Section 5005 shall not apply to this subparagraph.
   (B) For the purpose of financing the installation of distributed
generation renewable energy sources or energy efficiency
improvements, "public agency" means a county, city, city and county,
or a municipal utility district, an irrigation district, or public
utility district that owns and operates an electric distribution
system. The definition of "city" in Section 5005 shall not apply to
this subparagraph. 
   (C) 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 subparagraph.  
   (C) 
    (D)  For the purpose of financing the public
improvements, "public agency" means a city as defined in Section
5005.
   (4) "Seismic strengthening improvements" means permanent
improvements fixed to residential, commercial, industrial,
agricultural, or other real property.
  SEC. 5.  Section 5898.21 of the Streets and Highways Code is
amended to read:
   5898.21.  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 distributed generation renewable energy sources,
energy or water efficiency improvements, or 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 distributed
generation renewable energy sources, energy or water efficiency
improvements, or seismic strengthening improvements and to contract
directly for the installation of distributed generation renewable
energy sources, energy or water efficiency improvements, or seismic
strengthening improvements that are permanently fixed to the property
owner's residential, commercial, industrial, agricultural, or other
real property.
  SEC. 6.  Section 5898.22 of the Streets and Highways Code is
amended to read:
   5898.22.  The report shall contain all of the following:
   (a) A map showing the boundaries of the territory within which
voluntary contractual assessments are proposed to be offered.
   (b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the voluntary
contractual assessment area and the public agency.
   (c) A statement of public agency policies concerning voluntary
contractual assessments including all of the following:
   (1) Identification of types of facilities, distributed generation
renewable energy sources, energy or water efficiency improvements, or
seismic strengthening improvements that may be financed through the
use of contractual assessments.
   (2) Identification of a public agency official authorized to enter
into voluntary contractual assessments on behalf of the public
agency.
   (3) A maximum aggregate dollar amount of voluntary contractual
assessments.
   (4) A method for setting requests from property owners for
financing through voluntary contractual assessments in priority order
in the event that requests appear likely to exceed the authorization
amount.
   (d) A plan for raising a capital amount required to pay for work
performed pursuant to voluntary contractual assessments. The plan may
include amounts to be advanced by the public agency through funds
available to it from any source. The plan may include the sale of a
bond or bonds or other financing relationship pursuant to Section
5898.28. The plan shall include a statement of or method for
determining the interest rate and time period during which
contracting property owners would pay any assessment. The plan shall
provide for any reserve fund or funds. The plan shall provide for the
apportionment of all or any portion of the costs incidental to
financing, administration, and collection of the voluntary
contractual assessment program among the consenting property owners
and the public agency.
   (e) A report on the results of the consultations with the county
auditor's office or county controller's office concerning the
additional fees, if any, that will be charged to the city or county
for incorporating the proposed voluntary contractual assessments into
the assessments of the general taxes of the city or county on real
property, and a plan for financing the payment of those fees.