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AB-1568 Enhanced infrastructure financing districts. (2017-2018)

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Date Published: 05/16/2017 09:00 PM
AB1568:v96#DOCUMENT

Amended  IN  Assembly  May 16, 2017
Amended  IN  Assembly  May 01, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1568


Introduced by Assembly Member Bloom

February 17, 2017


An act to amend Section 53398.59 of, and to add Section 53398.75.5 to, the Government Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


AB 1568, as amended, Bloom. Enhanced infrastructure financing districts.
Existing law establishes procedures for the formation of infrastructure financing districts, enhanced infrastructure financing districts, infrastructure and revitalization financing districts, and community revitalization and investment authorities, as specified, to undertake various economic development projects, including financing public facilities and infrastructure, affordable housing, and economic revitalization. Existing law authorizes an infrastructure financing plan or a community revitalization and investment plan to provide for the division of taxes levied upon taxable property, if any, between the affected taxing entities, as defined, and the district or authority.
The bill would, would enact the Neighborhood Infill Finance and Transit Improvements Act which would authorize an infrastructure finance plan to provide, under specified circumstances, for the receipt and use, as provided, of any increase of the total receipts of local sales and use tax or transactions and use tax from one year to the next collected by a consenting local agency next, as determined and allocated by the State Board of Equalization, and attributable to the area of the district under specified circumstances.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 53398.59 of the Government Code is amended to read:

53398.59.
 A legislative body of a city or county may designate one or more proposed enhanced 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 enhanced 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 or in the office of the recorder of the county, as applicable.
(b) State the type of public facilities and development proposed to be financed or assisted by the district in accordance with Section 53398.52.
(c) State the need for the district and the goals the district proposes to achieve.
(d) State that incremental property tax revenue from the city or county and some or all affected taxing entities within the district, if approved by resolution pursuant to Section 53398.68, may be used to finance these activities.
(e) State that any increase of the total receipts of local sales and use tax or transactions and use tax will be collected pursuant to Section 53398.75.5, if applicable.
(f) Fix a time and place for a public hearing on the proposal.

SEC. 2.

 Section 53398.75.5 is added to the Government Code, to read:

53398.75.5.
 (a) This section shall be known and may be cited as the Neighborhood Infill Finance and Transit Improvements Act, or NIFTI.
(b) An infrastructure financing plan may contain a provision for the receipt of any increase of the total receipts of local sales and use tax or transactions and use tax from one year to the next collected by a consenting local agency and attributable to the area of the district if all of the following apply:
(1) The area to be financed with funds received pursuant to this section is an infill site, as defined by Section 21061.3 of the Public Resources Code.
(2) The infrastructure financing plan provides for the allocation of at least 20 percent of the funds received by the district pursuant to this section to be used to finance projects meeting the requirements of paragraph (12) of subdivision (b) of Section 53398.52.
(3) The infrastructure financing plan includes requirements that at least 20 percent of any new production in the area to be financed with funds received pursuant to this section be affordable housing, as follows:
(A) At least 6 percent of any new production be very low income units.
(B) At least 9 percent of any new production be low-income units.
(C) At least 5 percent be affordable housing units for low incomes at any level, including, but not limited to, low- and very low income units.
(4) The use of the revenues derived from the local sales and use tax or transactions and use tax pursuant to the infrastructure financing plan is consistent with the purposes for which that tax is imposed.
(5) The boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district.
(c) The State Board of Equalization shall determine any increase in local sales and use tax or transactions and use tax, as described in subdivision (b), and allocate those revenues as directed by an infrastructure financing plan.