BILL NUMBER: SB 214 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 18, 2012
AMENDED IN ASSEMBLY JUNE 21, 2011
AMENDED IN SENATE APRIL 25, 2011
INTRODUCED BY Senator Wolk
(Coauthor: Assembly Member Williams)
FEBRUARY 8, 2011
An act to amend Sections 53395, 53395.1, 53395.2,
53395.3, 53395.4, 53395.5, 53395.6, 53395.7, 53395.10, 53395.11,
53395.12, 53395.13, 53395.14, 53395.16, 53395.17,
53395.19, 53395.20, 53396, 53397.1, and 53397.2 of,
and to repeal Sections 53395.21,
53395.22, 53395.23, 53395.24, 53395.25, 53397.4, 53397.5, 53397.6,
and 53397.7 of, and to repeal and add Section 53395.21 to,
the Government Code, relating to infrastructure financing districts.
LEGISLATIVE COUNSEL'S DIGEST
SB 214, as amended, Wolk. Infrastructure financing districts:
voter approval: repeal.
(1) Existing law authorizes a legislative body, as defined, to
create an infrastructure financing district, adopt an infrastructure
financing plan, and issue bonds, for which only the district is
liable, to finance specified public facilities, upon voter approval.
Existing law authorizes an infrastructure financing district to
fund infrastructure projects through tax increment financing,
pursuant to the infrastructure financing plan and agreement of
affected taxing entities, as defined.
This bill would revise the provisions governing the
public facilities that may be financed. The bill would
and recast the provisions governing infrastructure financing
districts. The bill would eliminate the requirement of voter
approval for creation of the district and for bond issuance
and authorize the legislative body to create the district,
subject to specified procedures. The bill would instead authorize a
newly created public financing authority, consisting of the city
council or board of supervisors, to adopt the
infrastructure financing plan, subject to approval by the
legislative body, and issue the bonds by
resolutions majority vote of the authority by
resolution . The bill would authorize a public financing
authority to enter into joint powers agreements with affected taxing
entities with regard to nontaxing authority or powers only. The
bill would authorize a district to finance specified actions and
projects and prohibit the district from providing financial
assistance to a vehicle dealer or big box retailer, as defined.
The bill would create a public accountability committee, as
specified, to review the actions of the public financing authority.
(2) Existing law requires that an infrastructure financing plan
created by a legislative body include a date on which the district
will cease to exist, which shall not be more than 30 years from the
date on which the ordinance forming the district is adopted.
This bill instead would specify that the date on which the
district would cease to exist would not be more than 40 years from
the date on which the legislative body public
financing authority adopted the resolution adopting the
infrastructure financing plan. The bill would also impose additional
reporting requirements after the adoption of an infrastructure
financing plan.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 53395 of the Government Code is amended to
read:
53395. (a) The Legislature finds and declares that the state and
federal governments have withdrawn in whole or in part from their
former role in financing infrastructure, including highways and
interchanges, sewage treatment and water reclamation works, water
supply and treatment works, flood control and drainage works,
schools, libraries, parks, parking facilities, open space, and
seismic retrofit and rehabilitation of public facilities.
(b) The Legislature further finds and declares that the methods
available to local agencies to finance public works often place an
undue and unfair burden on buyers of new homes, especially for public
works that benefit the broader community.
(c) The Legislature further finds and declares that the absence of
practical and equitable methods for financing public works leads to
a declining standard of public works, a reduced quality of life and
decreased safety for affected citizens, increased objection to
otherwise desirable development, and excessive costs for homebuyers.
(d) The Legislature further finds and declares that because
California's disadvantaged communities, as defined in Section 75005
of the Public Resources Code, may not be beneficiaries of quality
public works, these communities are neglected and, thus, isolated
from and deprived of the basic facilities needed for public health
and safety.
(e) The Legislature further finds and declares that it is
equitable and in the public interest to provide alternative
procedures for financing public works and services needed to meet the
needs of new housing, disadvantaged communities, and other
development projects.
(f) The Legislature further finds and declares that it is in the
public interest to develop a mechanism that allows public agencies to
jointly dedicate their revenues to projects that support sustainable
communities.
SEC. 2. Section 5339 5.1 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
which 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 financing district.
(2) An infrastructure financing district is a "district" within
the meaning of Section 1 of Article XIII A of the California
Constitution.
(f) "Infrastructure financing district" means a legally
constituted public and corporate governmental entity
separate and distinct from the city that established it
pursuant to this chapter for the sole purpose of financing
public facilities. An infrastructure financing district shall be
a "local agency" for purposes of Chapter 9 (commencing with Section
54950).
(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) "Public financing authority" means the legislative body of the
infrastructure financing district established pursuant to this
chapter. The public financing authority shall be comprised of members
of the city council or board of supervisors that established the
district pursuant to this chapter.
SEC. 3. 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
a party to a reimbursement agreement established pursuant
to that chapter. The revenues of the district may also be committed
to paying for any completed public 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
district .
(b) The legislative body public financing
authority may enter into an agreement with any affected taxing
entity providing for the construction of, or assistance in, financing
public facilities activities pursuant to
Section 53395.3 .
SEC. 2. SEC. 4. 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
that satisfies the requirements of subdivision (b), (2)
may finance planning and design work which
that is directly related to the purchase, construction,
expansion, or rehabilitation of that property, and
(3) the costs described in Sections 53395.5 and 53396.5 , and
(4) may contribute to the cost of maintaining facilities that are
financed pursuant to subdivision (b) . A district may only
finance the purchase of facilities for which construction has been
completed, as determined by the legislative body. The facilities need
not be physically located within the boundaries of the district.
A Except as specifically provided in this
section, a district shall not finance routine maintenance,
repair work, or the costs of ongoing operation or providing services
of any kind. A district shall not compensate the members of the
legislative body of the city or the district for any
activities undertaken pursuant to this chapter.
(b) The district shall finance only structural or nonstructural
public capital facilities that either benefit properties within
the district or make facilities available to those properties ,
including, but not limited to, all 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.
(c) The district shall be a local agency within the meaning
of subdivision (d) of Section 33459 of the Health and Safety Code and
may finance any actions necessary to implement 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).
(d) The district may finance any projects
project that implement implements
a sustainable communities strategy prepared pursuant to
Section 65074 transit priority project .
(e) Any district which 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, as defined in
Section 50093 of the Health and Safety Code.
SEC. 3. SEC. 5. Section 53395.4 of
the Government Code is amended to read:
53395.4. (a) A district shall not provide any form of financial
assistance to a vehicle dealer or a big box retailer, or a business
entity that sells or leases land to a vehicle dealer or big box
retailer, that is relocating from the territorial jurisdiction of one
local agency to the territorial jurisdiction of another local agency
, but within the same market area, as those terms are
used in Section 53084.
(b) A district may finance only the facilities authorized in this
chapter to the extent that the facilities are in addition to those
provided in the territory of the district before the district was
created. The additional facilities may not supplant facilities
already available within that territory when the district was created
but may supplement , rehabilitate, upgrade, or make more
sustainable those facilities as needed to serve new
developments .
(c) A district may include areas which
that are not contiguous.
SEC. 4. SEC. 6. 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 dwelling units. If, however, any dwelling units are
proposed to be removed or destroyed in the course of private
development or public works 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, 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, 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. 5. SEC. 7. Section 53395.6 of
the Government Code is amended to read:
53395.6. Any action or proceeding to attack, review, set aside,
void, or annul the creation of a district, adoption of an
infrastructure financing plan, including a division of taxes
thereunder, shall be commenced within 30 days after the date the
legislative body adopted the resolution adopting the infrastructure
financing plan pursuant to Section 53395.20. Consistent with the time
limitations of this section, such an action or proceeding with
respect to a division of taxes under this chapter may be brought
pursuant to Chapter 9 (commencing with Section 860) of Title 10 of
Part 2 of the Code of Civil Procedure, except that Section 869 of the
Code of Civil Procedure shall not apply.
SEC. 6. SEC. 8. Section 53395.7 of
the Government Code is amended to read:
53395.7. An action to determine the validity of the issuance of
bonds pursuant to this chapter may be brought pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure. However, notwithstanding the time limits specified
in Section 860 of the Code of Civil Procedure, the action shall be
commenced within 30 days after the date the legislative body
public financing authority adopted the
resolution authorizing the issuance of the bonds pursuant to Section
53397.1, if the action is brought by an interested person pursuant to
Section 863 of the Code of Civil Procedure. Any appeal from a
judgment in that action or proceeding shall be commenced within 30
days after entry of judgment.
SEC. 7. 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 public facilities and development
proposed to be financed or assisted by the district
in accordance with Section 53395.3 . The district may
only finance public facilities authorized by Section 53395.3.
(c) State the need for the district and the goals the district
proposes to achieve by financing public facilities
.
(d) State that incremental property tax revenue from the city and
some or all affected taxing entities within the district , if
approved by resolution pursuant to Section 53395.19, may be
used to finance these public facilities
implement the plan adopted pursuant to Section 53395.14 .
(e) Fix a time and place for a public hearing on the proposal.
SEC. 8. SEC. 10. Section 53395.11 of
the Government Code is amended to read:
53395.11. The legislative body shall direct the clerk to mail a
copy of the resolution of intention to create the district to each
owner of land within the district and to each affected taxing entity.
SEC. 9. SEC. 11. Section 53395.12 of
the Government Code is amended to read:
53395.12. (a) The legislative body shall
direct the clerk to post a copy of the resolution of intention to
create the district in an easily identifiable and accessible location
on the legislative body's Internet Web site.
(b) At the conclusion of the public hearing scheduled pursuant to
subdivision (e) of Section 53395.10, the legislative body of the city
may adopt a resolution establishing the infrastructure financing
district based upon a finding that (1) the goals of the district are
consistent with the general plan; and (2) the financing programs
undertaken by the district are an efficient means of implementing the
goals of the district.
SEC. 12. Section 53395.13 of the
Government Code is amended to read:
53395.13. After adopting the resolution pursuant to Section
53395.10 53395.12 , the legislative
body shall send a copy of the resolution to the public financing
authority. Upon receipt of the resolution, the public financing
authority shall designate and direct the city engineer or other
appropriate official to prepare an infrastructure plan pursuant to
Section 53395.14.
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 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.
(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 which may be
allocated to the district pursuant to the plan.
(5) A date on which the district will cease to exist, by which
time all tax allocation to the district will end. The date shall not
be more than 40 years from the date the legislative body adopted the
resolution adopting the infrastructure financing plan pursuant to
Section 53395.20.
(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.
(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 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.
(f) The goals the district proposes to achieve by financing public
facilities.
SEC. 13. 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 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
, or assistance, that benefits or serves the
development 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 If funding from affected
taxing entities is incorporated into the financing plan, 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
property tax revenue of the city and of each affected taxing
entity , if any, 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 specification of the maximum portion of revenue from other
taxes imposed by a city proposed to be committed to the district for
each year during which the district will receive those revenues.
(2)
(3) 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.
(3)
(4) A plan for financing the public facilities to be
assisted by the district, including a detailed description of any
intention to incur debt.
(4)
(5) A limit on the total number of dollars of taxes
which that may be allocated to the
district pursuant to the plan.
(5)
(6) A date on which the district will cease to exist,
by which time all tax allocation to the district will end. The date
shall not be more than 30 40 years from
the date on which the ordinance forming the district is
adopted the public financing authority adopted the
resolution adopting the infrastructure financing plan pursuant
to Section 53395.23 53395.20 .
(6)
(7) 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)
(8) An analysis of the projected fiscal impact of the
district and the associated development upon each affected taxing
entity.
(8)
(9) 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 and
additional expenses related to the project or the
developer of a project that implements a transit priority 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 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.
(f) The goals the district proposes to achieve by financing public
facilities.
(g) The goals the district proposes to achieve by assisting the
development described in paragraph (8) of subdivision (d).
(h) If funding from affected taxing entities is included in the
plan, the creation of the public accountability committee, pursuant
to Section 53395.21.
SEC. 14. Section 53395.16 of the
Government Code is amended to read:
53395.16. The designated official shall consult with the
city and each affected taxing entity, and, at the request of
any affected taxing entity, shall meet with representatives of an
affected taxing entity. Any affected taxing entity may
suggest revisions to the plan.
SEC. 15. Section 53395.17 of the
Government Code is amended to read:
53395.17. The legislative body public
financing authority shall conduct a public hearing prior to
adopting the proposed infrastructure financing plan. The public
hearing shall be called no sooner than 60 days after the plan has
been sent to each affected taxing entity. In addition to the notice
given to landowners and affected taxing entities pursuant to Sections
53395.11 and 53395.12, notice of the public hearing shall be given
by publication not less than once a week for four successive weeks in
a newspaper of general circulation published in the city in which
the proposed district is located. The notice shall state that the
district will be used to finance public works, briefly describe the
public works, briefly describe the proposed financial arrangements,
including the proposed commitment of incremental tax revenue,
describe the boundaries of the proposed district and state the day,
hour, and place when and where any persons having any objections to
the proposed infrastructure financing plan, or the regularity of any
of the prior proceedings, may appear before the legislative
body public financing authority and object to
the adoption of the proposed plan by the legislative body
public financing authority .
SEC. 11. SEC. 16. Section 53395.19
of the Government Code is amended to read:
53395.19. (a) The legislative body public
financing authority shall not enact a resolution
forming a district and providing approving a financing
plan that provides 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
that is proposed to be subject to division of
taxes pursuant to Article 3 (commencing with Section 53396) has been
filed with the legislative body public
financing authority at or prior to the time of the hearing.
(b) In the case of an affected taxing entity that is a special
district which 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 public financing authority
from amending its infrastructure financing plan and adopting a
resolution forming the infrastructure financing district without
allocation of the tax revenues of any affected taxing entity that has
not approved the infrastructure financing plan by resolution of the
governing body of the affected taxing entity.
(d) A public financing authority may enter into a joint powers
agreement pursuant to Section 6500 with an affected taxing entity to
carry out the purposes of this chapter with regard to nontaxing
authority or powers only.
(e) An infrastructure financing plan that provides for the
division of taxes of any affected taxing entity shall not be
implemented until the date on which the public accountability
committee is created pursuant to Section 53395.21.
SEC. 12. SEC. 17. Section 53395.20
of the Government Code is amended to read:
53395.20. (a) At the conclusion of the hearing required by
Section 53395.17, the legislative body public
financing authority may adopt a resolution adopting the
infrastructure financing plan, as modified, and approving the
formation of the infrastructure financing district in a manner
consistent with Section Sections 53395.10 and
53395.19, or it may abandon the proceedings. The public
financing authority shall forward a copy of the plan to the
legislative body to review and approve the financing section of the
plan described in subdivision (d) of Section 53395.14. The
infrastructure financing plan shall not take effect until approved by
the legislative body.
(b) No later than June 30 of each year after the adoption of the
infrastructure financing plan, the legislative body
public financing authority shall direct the
clerk of the legislative body to mail an annual report to
each owner of land within the district and each affected taxing
entity. The legislative body public financing
authority shall direct the clerk of the legislative body
to post this 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:
(1) A summary of the district's expenditures.
(2) A description of the progress made towards the district's
adopted goals.
(3) An assessment of the status regarding completion of the
district's public works projects.
(c) If the district fails to provide the annual report required by
subdivision (b), the district shall not spend any funds to construct
public works projects until the annual report is submitted.
(d) If the district fails to produce evidence of progress made
towards achieving its adopted goals for five consecutive years, the
district shall not spend any funds to construct any new public works
projects; provided, however, the district may complete any public
works projects that it had started. Any excess property tax increment
revenues that had been allocated for new public works projects shall
be reallocated to the affected taxing entities.
SEC. 13. SEC. 18. Section 53395.21
of the Government Code is repealed.
SEC. 19. Section 53395.21 is added to the
Government Code , to read:
53395.21. (a) If an infrastructure financing plan contains a
provision that provides for the division of taxes of any affected
taxing entity, a public accountability committee shall be established
pursuant to this section.
(b) A public accountability committee shall be comprised of a
representative of each affected taxing entity that has agreed to the
division of its taxes, a representative of the public financing
authority, and one or more public members.
(c) The legislative body of each affected taxing entity and the
legislative body of the public financing authority shall each appoint
one of its members, or their designee, to the public accountability
committee. Those persons appointed pursuant to this subdivision
shall, by lot, appoint one or more public members to ensure that the
public accountability committee consists of an odd number of members
for voting purposes.
(d) All meetings with the public accountability committee shall be
noticed in accordance with Section 54956.
(e) The purposes of the public accountability committee shall be
to conduct or have conducted an annual performance review and an
annual independent financial review of the public financing
authority. The costs of the audits required pursuant to this
subdivision shall be paid from revenues of the public financing
authority.
SEC. 14. SEC. 20. Section 53395.22
of the Government Code is repealed.
SEC. 15. SEC. 21. Section 53395.23
of the Government Code is repealed.
SEC. 16. SEC. 22. Section 53395.24
of the Government Code is repealed.
SEC. 17. SEC. 23. Section 53395.25
of the Government Code is repealed.
SEC. 18. SEC. 24. Section 53396 of
the Government Code is amended to read:
53396. Any infrastructure financing plan may contain a provision
that taxes, if any, levied upon taxable property in the area included
within the infrastructure financing district each year by or for the
benefit of the State of California, or any affected taxing entity
after the effective date of the resolution adopted pursuant to
Section 53395.20 to create the district, shall be divided as follows:
(a) That portion of the taxes which that
would be produced by the rate upon which the tax is levied each
year by or for each of the affected taxing entities upon the total
sum of the assessed value of the taxable property in the district as
shown upon the assessment roll used in connection with the taxation
of the property by the affected taxing entity, last equalized prior
to the effective date of the resolution adopted pursuant to Section
53395.20 to create the district, shall be allocated to, and when
collected shall be paid to, the respective affected taxing entities
as taxes by or for the affected taxing entities on all other property
are paid.
(b) That portion of the levied taxes each year specified in the
adopted infrastructure financing plan for the city and each affected
taxing entity which that has agreed to
participate pursuant to Section 53395.19 in excess of the amount
specified in subdivision (a) shall be allocated to, and when
collected shall be paid into a special fund of, the district for all
lawful purposes of the district. Unless and until the total assessed
valuation of the taxable property in a district exceeds the total
assessed value of the taxable property in the district as shown by
the last equalized assessment roll referred to in subdivision (a),
all of the taxes levied and collected upon the taxable property in
the district shall be paid to the respective affected taxing
entities. When the district ceases to exist pursuant to the adopted
infrastructure financing plan, all moneys thereafter received from
taxes upon the taxable property in the district shall be paid to the
respective affected taxing entities as taxes on all other property
are paid.
SEC. 19. SEC. 25. Section 53397.1 of
the Government Code is amended to read:
53397.1. The legislative body public
financing authority may, by majority vote, authorize the
issuance of bonds pursuant to this chapter by adopting a resolution.
SEC. 20. SEC. 26. Section 53397.2 of
the Government Code is amended to read:
53397.2. The resolution adopted pursuant to Section 53397.1 shall
contain all of the following information:
(a) A description of the facilities to be financed with the
proceeds of the bond issue.
(b) The estimated cost of the facilities, the estimated cost of
preparing and issuing the bonds, and the principal amount of the bond
issuance.
(c) The maximum interest rate and discount on the bond issuance.
(d) A determination of the amount of tax revenue available or
estimated to be available, for the payment of the principal of, and
interest on, the bonds.
(e) A finding that the amount necessary to pay the principal of,
and interest on, the bond issuance will be less than, or equal to,
the amount determined pursuant to subdivision (d).
(f) The issuance of the bonds in one or more series.
(g) The date the bonds will bear.
(h) The denomination of the bonds.
(i) The form of the bonds.
(j) The manner and execution of the bonds.
(k) The medium of payment in which the bonds are payable.
(l) The place or manner of payment and any requirements for
registration of the bonds.
(m) The terms or call of redemption, with or without premium.
SEC. 21. SE C. 27.
Section 53397.4 of the Government Code is repealed.
SEC. 22. SEC. 28. Section 53397.5 of
the Government Code is repealed.
SEC. 23. SEC. 29. Section 53397.6 of
the Government Code is repealed.
SEC. 24. SEC. 30. Section 53397.7 of
the Government Code is repealed.