BILL NUMBER: AB 2144 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 3, 2012
AMENDED IN SENATE JUNE 21, 2012
AMENDED IN ASSEMBLY APRIL 16, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Members John A. Pérez, Atkins, and Dickinson
(Principal coauthor: Assembly Member Bonilla)
FEBRUARY 23, 2012
An act to amend Sections 53395.1, 53395.2, 53395.3, 53395.4,
53395.5, 53395.10, 53395.14, 53395.15, 53395.19, 53395.23, 53395.24,
53397.6, and 53397.10 of, and to add Sections 53395.1.5, 53395.3.1,
and 53395.26 to, the Government Code, and to amend Section 33459 of
the Health and Safety Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 2144, as amended, John A. Pérez. Local government:
infrastructure and revitalization financing districts.
Existing law authorizes the creation of infrastructure financing
districts, as defined, for the sole purpose of financing public
facilities, subject to adoption of a resolution by the legislative
body and affected taxing entities proposed to be subject to division
of taxes and 2/3 voter approval. Existing law authorizes the
legislative body to, by majority vote, initiate proceedings to issue
bonds for the financing of district projects by adopting a
resolution, subject to specified procedures and 2/3 voter approval.
Existing law requires an infrastructure financing plan to include the
date on which an infrastructure financing district will cease to
exist, which may not be more than 30 years from the date on which the
ordinance forming the district is adopted. Existing law prohibits a
district from including any portion of a redevelopment project area.
Existing law, the Polanco Redevelopment Act, authorizes a
redevelopment agency to take any action that the agency determines is
necessary and consistent with state and federal laws to remedy or
remove a release of hazardous substances on, under, or from property
within a project area, whether the agency owns that property or not,
subject to specified conditions. Existing law also declares the
intent of the Legislature that the areas of the district created be
substantially undeveloped, and that the establishment of a district
should not ordinarily lead to the removal of dwelling units.
This bill would authorize the creation of an infrastructure and
revitalization financing district and the issuance of debt with 55%
voter approval. The bill would authorize the creation of a district
for up to 40 years and the issuance of debt with a final maturity
date of up to 30 years, as specified. The bill would delete the
prohibition on a district including any portion of a redevelopment
project area, as defined, and authorize a district to finance
projects in redevelopment project areas and former redevelopment
project areas and former military bases. The bill would authorize the
legislative body of a city to dedicate any portion of its funds
received from the Redevelopment Property Tax Fund to the district, if
specified criteria are met. The bill would authorize a city to form
a district to finance a project or projects on a former military
base, if specified conditions are met. The bill would provide that
the issuance of debt by such a district on land of a former military
base that is publicly owned is not subject to voter approval, as
specified.
The bill would expand the projects that a district may fund to
include watershed land used for the collection and treatment of water
for urban uses, flood management, levees, bypasses, open space,
habitat restoration, brownfields restoration, environmental
mitigation, purchase of land and property for development purposes,
including commercial property, hazardous cleanup, former military
bases, and specified transportation purposes. The bill would
authorize a district to implement hazardous cleanup pursuant to the
Polanco Redevelopment Act, as specified. The bill would impose a
specified reporting requirement on districts. The bill would delete
the statement of the intent of the Legislature that the area of the
district be substantially undeveloped, and would instead state that
it is the intent of the Legislature that the establishment of a
district should not ordinarily lead to the removal of existing
functional, habitable, and safe dwelling units, as specified. The
bill would make a further statement of legislative intent and would
change the name of an "infrastructure financing district" to
"infrastructure and revitalization financing district."
Vote: majority. Appropriation: no. Fiscal committee: yes.
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 enact
legislation during the 2011-12 Regular Session that establishes
long-term, targeted programs that provide local governments with
tools and resources for specified purposes, including, but not
limited to, public infrastructure, affordable housing, economic
development and job creation, and environmental protection and
remediation, in a manner that encourages local cooperation and
includes appropriate protections for state and local taxpayers.
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 and revitalization
financing district.
(2) An infrastructure and revitalization financing district is a
"district" within the meaning of Section 1 of Article XIII A of the
California Constitution.
(f) "Infrastructure and revitalization financing district" means a
legally constituted governmental entity established pursuant to this
chapter for the sole purpose of financing facilities authorized by
this chapter.
(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) "Project area" means a defined area within a district in which
the activities of the district share a common purpose or goal and an
overall financing plan.
(j) "Net available revenue" means periodic distributions to the
city from the Redevelopment Property Tax Trust Fund, created pursuant
to Section 34170.5 of the Health and Safety Code, that are available
to the city after all preexisting legal commitments and statutory
obligations funded from that revenue are made pursuant to Part 1.85
(commencing with Section 34170) of Division 24 of the Health and
Safety Code. Net available revenue shall only include revenue
remaining after all current distributions, including, but not limited
to, payment of enforceable obligations, all distributions to other
taxing entities, and applicable administrative fees, have been made.
SEC. 3. Section 53395.1.5 is added to the Government Code, to
read:
53395.1.5. Notwithstanding any other law, any reference in this
title to an "infrastructure financing district" or "district" shall
instead be deemed to refer to an "infrastructure and revitalization
financing district."
SEC. 4. 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
party to a reimbursement agreement established pursuant to that
chapter. The revenues of the district may also be committed to paying
for any completed 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 city.
(b) The legislative body may enter into an agreement with any
affected taxing entity providing for the construction of, or
assistance in, financing facilities.
SEC. 5. 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 which satisfies the
requirements of subdivision (b), (2) may finance planning and design
work which is directly related to the purchase, construction,
expansion, improvement, rehabilitation, or seismic retrofit of that
property, and (3) the costs described in Sections 53395.5 and
53396.5. The facilities need not be physically located within the
boundaries of the district. A district may not finance routine
maintenance, repair work, or the costs of ongoing operation or
providing services of any kind.
(b) The district shall finance only facilities or projects 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.
(9) Brownfields restoration and other environmental mitigation.
(10) Purchase of land and property for development purposes and
related site improvements.
(11) Acquisition, construction, or repair of housing for rental or
purchase, including multipurpose facilities.
(12) Acquisition, construction, or repair of commercial or
industrial structures for private use.
(13) The repayment of the transfer of funds to a military base
reuse authority pursuant to Section 67851.
(c) 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 low and moderate income , as
defined in Section 50093 of the Health and Safety Code.
(d) A district may utilize any powers under 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),
and finance any action necessary to implement that act.
(e) A district may finance any project that implements a
sustainable communities strategy prepared pursuant to Section 65074.
SEC. 6. Section 53395.3.1 is added to the Government Code, to
read:
53395.3.1. (a) A city may form a district to finance a project or
projects on a former military base pursuant to the requirements set
forth in this chapter.
(b) A district formed under this section may finance a project
pursuant to Section 53395.3 or this section only if the project is
consistent with the authority reuse plan and is approved by the
military base reuse authority, if applicable.
(c) Notwithstanding Section 53397.6, the issuance of debt by a
district formed under this section to finance facilities described in
the infrastructure financing plan shall not be subject to voter
approval, provided that, at the time of approval of the formation of
the district, all of the land within the proposed district, or a
designated project area within the district on which the facilities
to be financed with the bonds will be located is owned by one or more
public entities, military base reuse authorities, or entities
controlled by governmental agencies.
SEC. 7. Section 53395.4 of the Government Code is amended to read:
53395.4. (a) A district may finance only the facilities or
services authorized in this chapter. The additional facilities or
services may not supplant facilities or services already available
within that territory when the district was created, except if those
facilities or services are essentially nonfunctional, obsolete, or
hazardous. The additional facilities or services may supplement those
facilities and services as needed to serve new developments.
(b) A district may include areas that are not contiguous. A
district may be divided into project areas, each of which may be
subject to distinct limitations established under this chapter. The
legislative body may, at any time, add territory to a district or
amend the infrastructure financing plan for the district by
conducting the same procedures for the formation of a district or
approval of bonds, if applicable, as provided pursuant to this
chapter.
(c) Any district may finance any project or portion of a project
that is located in, or overlaps with, any redevelopment project area
or former redevelopment project area or former military base.
(d) Notwithstanding subdivision (c), any debt or obligation of a
district shall be subordinate to an enforceable obligation of a
former redevelopment agency, as defined in Section 34171 of the
Health and Safety Code.
(e) The legislative body of the city forming the district may
choose to dedicate any portion of its net available revenue to the
district through the financing plan described in Section 53395.14.
SEC. 8. 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 functional, habitable, and safe dwelling units. If,
however, any dwelling units are proposed to be removed or destroyed
in the course of private development or public works
facilities 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, or affordable rent, as
defined in Section 50053 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, or affordable rent, as
defined in Section 50053 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. 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 facilities proposed to be financed by the
district. The district may only finance facilities authorized by
Section 53395.3.
(c) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district may be used
to finance these facilities.
(d) State that net available revenue from the city may be used to
finance these facilities and state the maximum portion of the net
available revenue to be committed to the district for each year
during which the district will receive these revenues.
(e) Fix a time and place for a public hearing on the proposal.
SEC. 10. Section 53395.14 of the Government Code is amended to
read:
53395.14. After receipt of a copy of the resolution of intention
to establish a district, 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
required 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) A finding that the public facilities are of
communitywide significance and 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 tax
revenue of the city and of each affected taxing entity 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.
If applicable, the plan shall also include a specification of the
maximum portion of the net available revenue of the city proposed to
be committed to the district for each year during which the district
will receive revenue. The portion may vary over time.
(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 shall cease to exist, by which
time all tax allocation, including any allocation of net available
revenue, to the district will end. The date shall not be more than 40
years from the date on which the ordinance forming the district is
adopted pursuant to Section 53395.23, or a later date, if specified
by the ordinance, on which the allocation of tax increment will
begin. The district may issue debt with a final maturity date of up
to 30 years from the date of issuance of each debt issue, subject to
the time limit on tax allocation to the district.
(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 related to the 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
facilities 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.
SEC. 11. Section 53395.15 of the Government Code is amended to
read:
53395.15. The infrastructure financing plan shall be sent to each
owner of land within the proposed district and to each affected
taxing entity together with any report required by the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code) that pertains to the proposed
facilities or the proposed development project for which the
facilities are needed, and shall be made available for public
inspection. The report shall also be sent to the planning commission
and the legislative body.
SEC. 12. Section 53395.19 of the Government Code is amended to
read:
53395.19. (a) The legislative body shall not enact a resolution
proposing formation of a district and providing 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 which is
proposed to be subject to division of taxes pursuant to Article 3
(commencing with Section 53396) has been filed with the legislative
body 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
legislative body from amending its infrastructure financing plan and
adopting a resolution proposing formation of the infrastructure
financing district without allocation of the tax revenues of any
affected taxing entity which has not approved the infrastructure
financing plan by resolution of the governing body of the affected
taxing entity.
SEC. 13. Section 53395.23 of the Government Code is amended to
read:
53395.23. After the canvass of returns of any election pursuant
to Section 53395.20, the legislative body may, by ordinance, adopt
the infrastructure financing plan and create the district with full
force and effect of law, if 55 percent of the votes upon the question
of creating the district are in favor of creating the district.
SEC. 14. Section 53395.24 of the Government Code is amended to
read:
53395.24. After the canvass of returns of any election conducted
pursuant to Section 53395.20, the legislative body shall take no
further action with respect to the proposed infrastructure financing
district for one year from the date of the election if the question
of creating the district fails to receive approval of 55 percent of
the votes cast upon the question.
SEC. 15. Section 53395.26 is added to the Government Code, to
read:
53395.26. No later than June 30 of each year after the adoption
of an infrastructure financing plan, the legislative body shall post
an 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:
(a) A summary of the district's expenditures.
(b) A description of the progress made towards
toward the district's adopted goals.
(c) An assessment of the status regarding completion of the
district's projects.
SEC. 16. Section 53397.6 of the Government Code is amended to
read:
53397.6. (a) Except as provided in Section 53395.3.1, bonds may
be issued if 55 percent of the voters voting on the proposition vote
in favor of authorizing the issuance of the bonds.
(b) If the voters authorize the issuance of the bonds as provided
by subdivision (a), the legislative body may subsequently proceed
with the issuance of the bonds by adopting a resolution which shall
provide for all of the following:
(1) The issuance of the bonds in one or more series.
(2) The principal amount of the bonds, which shall be consistent
with the amount specified in subdivision (b) of Section 53397.2.
(3) The date the bonds will bear.
(4) The date of maturity of the bonds.
(5) The denomination of the bonds.
(6) The form of the bonds.
(7) The manner of execution of the bonds.
(8) The medium of payment in which the bonds are payable.
(9) The place or manner of payment and any requirements for
registration of the bonds.
(10) The terms of call or redemption, with or without premium.
SEC. 17. Section 53397.10 of the Government Code is amended to
read:
53397.10. (a) The bonds may be sold at
discount not to exceed 5 percent of par at a negotiated or public
sale. At least five days prior to a public sale, notice shall be
published, pursuant to Section 6061, in a newspaper of general
circulation and in a financial newspaper published in the City and
County of San Francisco and in the City of Los Angeles. The bonds may
be sold at not less than par to the federal government at private
sale without any public advertisement.
(b) Notwithstanding any other law, a negotiated sale for bond
issuances of an infrastructure and revitalization financing district
that exceeds five million dollars ($5,000,000) shall be contracted
for and let to the lowest responsible bidder.
SEC. 18. Section 33459 of the Health and Safety Code is amended to
read:
33459. For purposes of this article, the following terms shall
have the following meanings:
(a) "Department" means the Department of Toxic Substances Control.
(b) "Director" means the Director of Toxic Substances Control.
(c) "Hazardous substance" means any hazardous substance as defined
in subdivision (h) of Section 25281, and any reference to hazardous
substance in the definitions referenced in this section shall be
deemed to refer to hazardous substance, as defined in this
subdivision.
(d) "Local agency" means a single local agency that is one of the
following:
(1) A local agency authorized pursuant to Section 25283 to
implement Chapter 6.7 (commencing with Section 25280) of, and Chapter
6.75 (commencing with Section 25299.10) of, Division 20.
(2) A local officer who is authorized pursuant to Section 101087
to supervise a remedial action.
(3) An infrastructure and revitalization financing district.
(e) "Qualified independent contractor" means an independent
contractor who is any of the following:
(1) An engineering geologist who is certified pursuant to Section
7842 of the Business and Professions Code.
(2) A geologist who is registered pursuant to Section 7850 of the
Business and Professions Code.
(3) A civil engineer who is registered pursuant to Section 6762 of
the Business and Professions Code.
(f) "Release" means any release, as defined in Section 25320.
(g) "Remedy" or "remove" means any action to assess, evaluate,
investigate, monitor, remove, correct, clean up, or abate a release
of a hazardous substance or to develop plans for those actions.
"Remedy" includes any action set forth in Section 25322 and "remove"
includes any action set forth in Section 25323.
(h) "Responsible party" means any person described in subdivision
(a) of Section 25323.5 of this code or subdivision (a) of Section
13304 of the Water Code.