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AB-1381 Property and Business Improvement District Law of 1994: benefits assessments.(1999-2000)

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AB1381:v92#DOCUMENT

Assembly Bill No. 1381
CHAPTER 871

An act to amend Sections 36615, 36621, 36623, 36631, 36633, 36635, 36641, 36642, 36650, and 36651 of, to amend and renumber Section 36626 of, to repeal Sections 36624, 36626.5, 36626.6, and 36626.7 of, to repeal and add Sections 36625 and 36627 of, and to add Section 36626 to, the Streets and Highways Code, relating to improvement districts.

[ Filed with Secretary of State  October 10, 1999. Approved by Governor  October 08, 1999. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 1381, Steinberg. Property and Business Improvement District Law of 1994: benefits assessments.
(1) Article XIII D of the California Constitution, which was added pursuant to the approval by the voters of Proposition 218 at the November 5, 1996, general election, generally requires a specified written notice and the holding of a public hearing for new or increased assessments, fees, and charges and, under certain circumstances, requires approval by the property owners. The Proposition 218 Omnibus Implementation Act prescribes specific procedures and parameters for local jurisdictions in complying with Article XIII D of the California Constitution.
The Property and Business Improvement District Law of 1994 authorizes cities to form property and business improvement districts for the purpose of levying assessments within a business improvement area.
This bill would reorganize those provisions to require a written notice and a public hearing, as specified in the Proposition 218 Omnibus Implementation Act.
(2) Existing law requires a city council, before adopting a resolution establishing a district, to appoint an advisory board to make recommendations and reports concerning the levying of assessments, as specified.
This bill, in addition and among other things, would provide that the first report is due after the first year of operation of the district.
(3) Existing law, upon the written request of the advisory board, authorizes the city council to modify the management district plan by adopting a resolution after holding hearings on the proposed modification, as specified.
This bill instead would require one public hearing to be held prior to adopting the resolution. The bill also would require the city council, if the modification includes the levy of a new or increased assessment, to comply with specified provisions of the Government Code relating to notice, protest, and hearing requirements.
(4) Existing law prohibits the city council from changing the boundaries of the district to include any territory that will not, in its judgment, benefit by the improvement or activity. Additions of territory to the proposed boundaries of the district are prohibited unless notice has been provided to the owners of the property proposed to be added to the district, as specified.
This bill would delete those prohibitions.
(5) Existing law requires the city council to adopt a resolution of intention that states the proposed modification prior to the public hearing which is required to be held not more than 60 days after the adoption of the resolution of intent.
This bill instead would require the public hearing to be held not more than 90 days after the adoption of the resolution of intent.

The people of the State of California do enact as follows:


SECTION 1.

 Section 36615 of the Streets and Highways Code is amended to read:

36615.
 “Property owner” or “owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. The city council 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 part. Wherever this subdivision requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient.

SEC. 2.

 Section 36621 of the Streets and Highways Code is amended to read:

36621.
 (a) Upon the submission of a written petition, signed by the property owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property owned by the same property owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
(3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, and a description of the exterior boundaries of the proposed district. The descriptions do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall not be held more than 90 days after the adoption of the resolution of intention.

SEC. 3.

 Section 36623 of the Streets and Highways Code is amended to read:

36623.
 If a city council proposes to levy a new or increased benefit assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code.

SEC. 4.

 Section 36624 of the Streets and Highways Code is repealed.

SEC. 5.

 Section 36625 of the Streets and Highways Code is repealed.

SEC. 6.

 Section 36625 is added to the Streets and Highways Code, to read:

36625.
 (a) If the city council, following the public hearing, decides to establish the proposed property and business improvement district, and the city council has made changes pursuant to Section 36624, and the changes substantially change the proposed assessment, the city council shall adopt a resolution of preliminary adoption that shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, and a description of the exterior boundaries of the proposed district. The descriptions do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received.
(5) A statement that the properties in the district established by the resolution shall be subject to any amendments to this part.
(6) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
(7) A finding that the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied.
(b) Not earlier than 30 days after the resolution of preliminary adoption, if the city council decides to establish the proposed property and business improvement district, the council shall consider all written protests. If written protests are received from property owners in the proposed district who pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, the proceedings to create the proposed district shall be terminated.
(c) If not required to terminate the proceedings in compliance with subdivision (b), the city council shall adopt a resolution consistent with the resolution of preliminary adoption. The adoption of the resolution and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. The resolution shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, and a description of the exterior boundaries of the proposed district. The descriptions do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention and resolution of preliminary adoption.
(3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received.
(5) A statement that a property and business improvement district has been established.
(6) A statement that the properties in the district established by the resolution shall be subject to any amendments to this part.
(7) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
(8) A finding that the property within the property and business improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied.

SEC. 7.

 Section 36626 of the Streets and Highways Code is amended and renumbered to read:

36624.
 At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements or activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.

SEC. 8.

 Section 36626 is added to the Streets and Highways Code, to read:

36626.
 If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but need not contain information about the preliminary resolution if none has been adopted.

SEC. 9.

 Section 36626.5 of the Streets and Highways Code is repealed.

SEC. 10.

 Section 36626.6 of the Streets and Highways Code is repealed.

SEC. 11.

 Section 36626.7 of the Streets and Highways Code is repealed.

SEC. 12.

 Section 36627 of the Streets and Highways Code is repealed.

SEC. 13.

 Section 36627 is added to the Streets and Highways Code, to read:

36627.
 Following adoption of the resolution establishing the district pursuant to Section 36625 or 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part.

SEC. 14.

 Section 36631 of the Streets and Highways Code is amended to read:

36631.
 (a) Before adopting a resolution establishing the district, the city council shall appoint an advisory board which shall make a recommendation to the city council on the expenditure of revenues derived from the levy of assessments pursuant to this part, on the classification of properties, as applicable, and on the method and basis of levying the assessments. The city council may designate existing advisory boards or commissions to serve as the advisory board for the district or may create a new advisory board for that purpose. At least one member of the advisory board shall be a business licensee within the district who is not also a property owner within the district.
(b) Any advisory board appointed by the city council pursuant to subdivision (a) shall comply with the provisions of the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code).

SEC. 15.

 Section 36633 of the Streets and Highways Code is amended to read:

36633.
 (a) The advisory board shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The advisory board’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones within the district.
(2) The improvements and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements and the activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the advisory board or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36640 and 36641. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments.

SEC. 16.

 Section 36635 of the Streets and Highways Code is amended to read:

36635.
 The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

SEC. 17.

 Section 36641 of the Streets and Highways Code is amended to read:

36641.
 (a) Upon the written request of the advisory board, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 53753 of the Government Code.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.

SEC. 18.

 Section 36642 of the Streets and Highways Code is amended to read:

36642.
 The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. Notice of the public hearing and the proposed modifications shall be published as provided in Section 36623.

SEC. 19.

 Section 36650 of the Streets and Highways Code is amended to read:

36650.
 (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of real property in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel in the district. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.

SEC. 20.

 Section 36651 of the Streets and Highways Code is amended to read:

36651.
 (a) Upon the disestablishment of a district, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be refunded to the owners of the property then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.