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SB-1389 Public investment authorities.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
SB1389:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1389

Introduced by Senator Allen

February 21, 2020

An act to amend Sections 53398.51, 53398.51.1, 53398.52, 53398.54, 53398.56, 53398.57, 53398.59, 53398.62, 53398.63, 53398.64, 53398.66, 53398.68, 53398.69, 53398.75, 53398.75.5, 53398.75.7, 53398.77, 53398.87, and 65621 of, to amend the heading of Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of, and to amend the heading of Article 2 (commencing with Section 53398.59) of Chapter 2.99 of Part 1 of Division 2 of Title 5 of, to add Sections 53398.59.5, 53398.75.1, 53398.75.3, 53398.75.9, 53398.79 to, and to add Article 5 (commencing with Section 53398.89) to Chapter 2.99 of Part 1 of Division 2 of Title 5 of, the Government Code, to amend Sections 1690 and 1699 of the Harbors and Navigation Code, and to add Section 97.90 to the Revenue and Taxation Code, relating to local government.


LEGISLATIVE COUNSEL'S DIGEST


SB 1389, as introduced, Allen. Public investment authorities.
(1) Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district, with a governing body referred to as the public financing authority, by adopting a resolution of intention to establish the proposed district and requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan and adopt a resolution to form the district, as provided. Existing law provides for the participation of an affected taxing entity, as defined, in the district, but prohibits the participation of a county office of education, school district, or community college district in the district.
This bill would recast these provisions to instead authorize the legislative body of a city or county, or of 2 of more cities acting jointly, to propose the formation of a public investment authority under these provisions and the adoption of a community investment and financing plan. The bill would make various conforming changes. The bill would delete the limitation on the participation of a county office of education, school district, or community college district, thereby allowing those entities to participate in a public investment authority. The bill would also authorize the public financing authority to invite the participation of a state agency that, in the judgment of the public financing authority, is able to provide expertise or resources to assist in the development of public facilities and development described in the community investment and financing plan.
This bill would, no later than January 1 of the first odd-numbered year following the adoption of a resolution to form a public investment authority, and each January 1 of every odd numbered year thereafter until the public investment authority ceases to exist, require the public financing authority to submit a report to the Department of Finance that includes specified information regarding the activities of the public investment authority. The bill would require the Department of Finance to compile and maintain a publicly accessible list of every facility and project financed in this state by a public investment authority, based on these reports.
(2) Existing law specifies various public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community that an enhanced infrastructure financing district may finance, including, among other things, the acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as defined. Existing law authorizes the district to finance mixed-income housing developments, but limits any such financing to those units in the development that are restricted to occupancy by persons of very low, low, or moderate income.
This bill would additionally authorize a public investment authority to finance energy storage systems, as defined, constructed to store energy from renewable resources and public school district or community college district facilities. The bill would also provide that any project financed by a public investment authority be considered a public work for purposes of specified law relating to payment of prevailing wages and require that the public financing authority ensure that a skilled and trained workforce be used to complete each project financed by the public investment authority. The bill would also require that at least 25% of all taxes that are allocated to a public investment authority from any affected taxing entity, as provided, be deposited into a separate fund and used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing in accordance with the above-described requirements relating to affordable housing development.
(3) Existing law requires the public financing authority of an enhanced infrastructure financing district to hold 3 public hearings on a proposed infrastructure financing plan, as provided. Existing law also requires the public financing authority to consult with each affected taxing entity and requires that an affected taxing entity adopt a resolution to participate in the district before the taxes of that affected taxing entity may be divided, as described below. Existing law also authorizes the public financing authority to issue bonds by adopting a resolution that includes specified information.
This bill would require an affected taxing entity to hold a public hearing on any resolution to participate in a public investment authority and the public financing authority to similarly hold a public hearing on any resolution to issue bonds. The bill would require an affected taxing entity or public financing authority to post notice of a hearing required by the bill in an easily identifiable and accessible location on the affected taxing entity’s or the district’s internet website and mail a written notice of the meeting or public hearing to specified entities.
(4) Existing law authorizes an infrastructure financing plan to contain a provision that taxes, if any, levied upon taxable property within the enhanced infrastructure financing district be divided, as provided. Existing law, known as the Neighborhood Infill Finance and Transit Improvements Act, or NIFTI, and the Second Neighborhood Infill Finance and Transit Improvements Act, or NIFTI-2, also authorizes, under certain circumstances, the allocation of tax revenues of a city, county, or city and county to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law.
This bill would authorize a community investment and financing plan to contain a provision providing for the allocation of each affected taxing entity’s ERAF share, as defined, to the public investment authority, subject to specified limitations. In this regard, the bill, upon adoption of a resolution to form a public investment authority, would require the public financing authority to submit a copy of that resolution, along with the community investment and financing plan, to the Department of Finance for review to determine the state fiscal impact, as defined, based on the anticipated increase in property tax revenue as a result of the facilities and projects proposed to be financed in the community investment and financing plan. If the Department of Finance determines that activities of the district under the community investment and financing plan will not result in any increased state fiscal impact, the bill would provide for the allocation of ad valorem property tax revenues from the county’s Educational Revenue Augmentation Fund, in a specified amount, to each affected taxing entity and require that amount to be allocated to the public investment authority and used in accordance with the community investment and financing plan. By adding to the duties of the county auditor in this regard, this bill would impose a state-mandated local program.
This bill would also authorize the city or county that proposed the formation of the public investment authority, and any affected taxing entity that has adopted a resolution to participate in the public investment authority, to adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law. The bill would require that the use of local sales and use taxes or transactions and use taxes pursuant to the community investment and financing plan be consistent with the purposes for which that tax is imposed.
(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The heading of Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of the Government Code is amended to read:
CHAPTER  2.99. Enhanced Infrastructure Financing District Public Investment Authority

SEC. 2.

 Section 53398.51 of the Government Code is amended to read:

53398.51.
 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 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. An “affected taxing entity” may include a special district if the special district is providing any portion of the funding included in the infrastructure community investment and financing plan adopted pursuant to Section 53398.63. For the purposes of this section, “special district” means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries, and shall not include including a school district or community college district.
(b) “County” means 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 or county engineer or other appropriate official designated pursuant to Section 53398.62.
(e) (1) “District” means an enhanced infrastructure financing district. a public investment authority.
(2) An enhanced infrastructure financing districtA public investment authority is a district within the meaning of Section 1 of Article XIII A of the California Constitution.

(f)“Enhanced infrastructure financing district” means a legally constituted governmental entity separate and distinct from the city or county that established it pursuant to this chapter for the sole purpose of financing public facilities or other projects as authorized by this chapter. An enhanced infrastructure financing district shall be a local agency for purposes of Chapter 9 (commencing with Section 54950).

(g)

(f) “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)

(g) “Legislative body” means the city council or board of supervisors.

(i)

(h) “Public financing authority” means the governing board of the district established pursuant to this chapter.
(i) (1) “Public investment authority” means a legally constituted governmental entity separate and distinct from the city or county that established it pursuant to this chapter for the sole purpose of financing public facilities or other projects as authorized by this chapter. A public investment authority shall be a local agency for purposes of Chapter 9 (commencing with Section 54950).
(2) Any reference to an “enhanced infrastructure financing district” in this code or any other code shall be deemed to instead refer to a “public investment authority” created pursuant to this chapter. Any district previously formed pursuant to this chapter before the effective date of the act adding this paragraph shall be deemed to be a “public investment authority.”
(j) “Skilled and trained workforce” has the same meaning as set forth in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

SEC. 3.

 Section 53398.51.1 of the Government Code is amended to read:

53398.51.1.
 (a) (1) The public financing authority shall have a membership consisting of one of the following, as appropriate:

(1)

(A) If a district has only one participating affected taxing entity, the public financing authority’s membership shall consist of three members of the legislative body of the participating entity, subject to paragraph (2), and two members of the public chosen by the legislative body. The appointment of the public members shall be subject to the provisions of Section 54974.

(2)

(B) If a district has two or more participating affected taxing entities, the public financing authority’s membership shall consist of a majority of members from the legislative bodies of the participating entities, subject to paragraph (2), and a minimum of two members of the public chosen by the legislative bodies of the participating entities. The appointment of the public members shall be subject to the provisions of Section 54974.
(2) If any participating affected taxing entity is a city that has an elective mayor, pursuant either to Article 3 (commencing with Section 34900) of Chapter 4 of Part 1 of Division 2 of Title 4 or a charter adopted pursuant to Section 3 of Article XI of the California Constitution, one of the members representing the legislative body of that participating entity pursuant to paragraph (1) shall be the mayor.
(3) Upon establishment of a district pursuant to this chapter, the public financing authority may invite any state agency, as that term is defined in Section 11000, to participate in the district that, in the judgment of the public financing authority, is able to provide expertise or resources to assist in the development of public facilities and development described in the community investment and financing plan. If the state agency accepts the invitation to participate, the state agency shall designate a representative to serve on the public financing authority. A state agency that participates in a district pursuant to this paragraph shall ensure that any resources provided to the district are used in accordance with any requirements under any applicable law and that those resources are not used in such a manner as to pledge of the full faith and credit or the taxing power of the state or any of its political subdivisions, other than the district, to secure any debt or liability of the district.
(b) The legislative body shall ensure the public financing authority is established at the same time that it adopts a resolution of intention pursuant to Section 53398.59.
(c)  Members of the public financing authority established pursuant to this chapter shall not receive compensation but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2.
(d)  Members of the public financing authority are subject to Article 2.4 (commencing with Section 53234) of Chapter 2.
(e)  The public financing authority created pursuant to this chapter shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)).

SEC. 4.

 Section 53398.52 of the Government Code is amended to read:

53398.52.
 (a) (1) A district may finance any of the following:
(A) 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 that satisfies the requirements of subdivision (b).
(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.
(C) The costs described in Sections 53398.56 and 53398.57.
(D) (i) The ongoing or capitalized costs to maintain public capital facilities financed in whole or in part by the district.
(ii) Notwithstanding clause (i), a district shall not use the proceeds of bonds issued pursuant to the authority in Article 4 (commencing with Section 53398.77) to finance maintenance of any kind.
(2) The facilities are not required to be physically located within the boundaries of the district. However, any facilities financed outside of a district shall have a tangible connection to the work of the district, as detailed in the infrastructure community investment and financing plan adopted pursuant to Section 53398.69.
(3) A district shall not finance the costs of an ongoing operation or providing services of any kind.
(b) The district shall finance only public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community, 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 for the collection and treatment of water for urban uses.
(4) Flood control levees and dams, retention basins, and drainage channels.
(5) Child care facilities.
(6) Libraries.
(7) Parks, recreational facilities, and open space.
(8) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.
(9) Brownfield restoration and other environmental mitigation.
(10) The development of projects on a former military base, provided that the projects are consistent with the military base authority reuse plan and are approved by the military base reuse authority, if applicable.
(11) The repayment of the transfer of funds to a military base reuse authority pursuant to Section 67851 that occurred on or after the creation of the district.
(12) The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase.
(13) Acquisition, construction, or repair of industrial structures for private use.
(14) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area.
(15) Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.
(16) Projects that enable communities to adapt to the impacts of climate change, including, but not limited to, higher average temperatures, decreased air and water quality, the spread of infectious and vector-borne diseases, other public health impacts, extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought.
(17) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.
(18) The acquisition, construction, or improvement of broadband Internet access service. For purposes of this section, “broadband Internet access services” has the same meaning as defined in Section 53167. A district that acquires, constructs, or improves broadband Internet access service may transfer the management and control of those facilities to a local agency that is authorized to provide broadband Internet access service, and that local agency when providing that service shall comply with the requirements of Article 12 (commencing with Section 53167) of Chapter 1 of Part 1 of Division 2 of Title 5.
(19) An energy storage system, as defined in Section 2835 of the Public Utilities Code, that is constructed to store energy generated from renewable resources.
(20) Public school district or community college district facilities, including, but not limited to, kindergarten through grade 12 school facilities, vocational education facilities, and rehabilitation improvements to existing facilities.
(c) The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low, or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(d) The district may finance mixed-income housing developments, but may finance only those units in such a development that are restricted to occupancy by persons of very low, low, or moderate incomes as defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for child care, after school care, and social services that are integrally linked to the tenants of the restricted units.
(e) A district may utilize any powers under either 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) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.
(f) (1) Subject to subdivision (g) of Section 53398.75.5 and subdivision (k) of Section 53398.75.7, any project financed by a district shall be considered to be a public work subject to the requirements of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(2) The public financing authority shall ensure that a skilled and trained workforce is used to complete each project financed by the district. Every contractor and subcontractor at every tier performing work on a project financed by the district shall provide the public financing authority with an enforceable commitment that the contractor or subcontractor will individually use a skilled and trained workforce to complete the project.

SEC. 5.

 Section 53398.54 of the Government Code is amended to read:

53398.54.
 A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, either on its own pursuant to Section 53398.59 or jointly pursuant to Section 53398.59.5, nor participate in the governance or financing of a district, until each of the following has occurred:
(a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.
(b) The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state, where the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district a public investment authority formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate in an enhanced infrastructure financing district a public investment authority pursuant to Section 53398.68, or of its legislative body’s action to form an enhanced infrastructure financing district a public investment authority pursuant to Section 53398.69.
(c) The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.
(d) The successor agency and the entity that created the former redevelopment agency have complied with all of the office of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

SEC. 6.

 Section 53398.56 of the Government Code is amended to read:

53398.56.
 It is the intent of the Legislature that the creation of the districts 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 public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district then the infrastructure community investment and financing plan adopted pursuant to Section 53398.69 shall contain provisions to do all of the following:
(a) If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, at any time within five years prior to establishment of the district, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in the same or a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.
(b) If the dwelling units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50106 and 50105 of the Health and Safety Code.
(c) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district as a result of the infrastructure community investment and financing plan adopted pursuant to Section 53398.69. The displacement of any persons from a dwelling unit as a result of the plan 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 has been full compliance with the relocation assistance requirements of this section, Section 53398.63, and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.
(e) (1) The district shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(2) The district may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the district’s investment of moneys in the unit or units, including, but not limited to, an equity sharing program, not in conflict with another public funding source or law, which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the district to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code.

SEC. 7.

 Section 53398.57 of the Government Code is amended to read:

53398.57.
 Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of an infrastructure a community investment and financing plan, including a division of taxes thereunder, or an election pursuant to this chapter shall be commenced within 30 days after the enactment of the resolution creating the district pursuant to Section 53398.69. 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.

SEC. 8.

 The heading of Article 2 (commencing with Section 53398.59) of Chapter 2.99 of Part 1 of Division 2 of Title 5 of the Government Code is amended to read:
Article  2. Preparation and Adoption of Infrastructure Community Investment and Financing Plan

SEC. 9.

 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 public investment authorities 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 a public investment authority 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) (1) State that a city, county, or city and county may allocate tax revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) to an enhanced infrastructure financing district a public investment authority pursuant to Section 53398.75.5, 53398.75.7, or 53398.75.9, if applicable.
(2) The legislative body of the city or county that elects to make an allocation pursuant to paragraph (1) shall adopt an ordinance to establish the following:
(A) The procedure by which the city or county will calculate the revenues derived from sales and use taxes and transactions and use taxes to be allocated to the enhanced infrastructure financing district. public investment authority.
(B) The decision process by which the city or county will determine the amount that will be dedicated to the proposed district.
(f) Fix a time and place for a public hearing on the proposal.

SEC. 10.

 Section 53398.59.5 is added to the Government Code, to read:

53398.59.5.
 (a) The legislative body of two or more cities may designate one or more proposed districts pursuant to this chapter, subject to the conditions as may apply under Section 53398.54, by adoption of a resolution of intention by each city proposing to jointly form the district.
(b) In order to jointly form a district pursuant to this section, each city shall do both of the following:
(1) Include all of the elements required by Section 53398.59 in its resolution of intention adopted pursuant to this section.
(2) Comply with all other applicable requirements of this article with respect to the formation of a district.
(c) The proposed boundaries of the community investment and financing area of a district proposed to be jointly formed pursuant to this section may include any or all of the territory within each city proposing to jointly form the district.

SEC. 11.

 Section 53398.62 of the Government Code is amended to read:

53398.62.
 (a) Except as provided in subdivision (b), after adopting the resolution pursuant to Section 53398.59, the legislative body shall send a copy of the resolution to the public financing authority. The public financing authority shall designate and direct the city or county engineer or other appropriate official to prepare an infrastructure a community investment and financing plan pursuant to Section 53398.63.
(b) In the case of a district proposed for port or harbor infrastructure, the legislative body shall designate and direct the harbor agency, except as provided in Section 1719 of the Harbors and Navigation Code, to prepare an infrastructure a community investment and financing plan pursuant to Section 53398.63.

SEC. 12.

 Section 53398.63 of the Government Code is amended to read:

53398.63.
 After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53395.62 shall prepare a proposed infrastructure community investment and financing plan. The infrastructure community investment and financing plan shall be consistent with the general plan of the city or county 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 and other forms of development or financial assistance that is 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 development and financial assistance.
(c) If funding from affected taxing entities is incorporated into the community investment and financing plan, a finding that the development and financial assistance 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 or county 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 that 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 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.
(6) An analysis of the costs to the city or county 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 or county 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 within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.
(f) The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

SEC. 13.

 Section 53398.64 of the Government Code is amended to read:

53398.64.
 The infrastructure community investment and 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 public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the public financing authority, the planning commission, and the legislative body.

SEC. 14.

 Section 53398.66 of the Government Code is amended to read:

53398.66.
 (a) (1) The public financing authority shall consider adoption of the enhanced infrastructure community investment and financing plan at three public hearings that shall take place at least 30 days apart. In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53398.60 and 53398.61, the public financing authority shall give notice of each public hearing in accordance with subdivision (i).
(2) At the first public hearing, the public financing authority shall hear all written and oral comments, but take no action.
(3) At the second public hearing, the public financing authority shall consider any additional written and oral comments and take action to modify or reject the enhanced infrastructure community investment and financing plan. If the enhanced infrastructure community investment and financing plan is not rejected at the second public hearing, then the public financing authority shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the enhanced infrastructure community investment and financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure community investment and financing plan.
(b) The draft-enhanced infrastructure draft community investment and financing plan shall be made available to the public and to each landowner within the area at a meeting held at least 30 days before the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the public financing authority to present the draft-enhanced infrastructure draft community investment and financing plan, answer questions about the enhanced infrastructure community investment and financing plan, and consider comments about the enhanced infrastructure community investment and financing plan.
(c) (1) The public financing authority shall give notice of the meeting required by subdivision (b) and the public hearings required by subdivision (a) in accordance with subdivision (i). The notice shall do all of the following, as applicable:
(A) Describe specifically the boundaries of the proposed area.
(B) Describe the purpose of the enhanced infrastructure community investment and financing plan.
(C) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure community investment and financing plan may appear to provide written or oral comments to the enhanced infrastructure financing district. public investment authority.
(D) Notice of the second public hearing shall include a summary of the changes made to the enhanced infrastructure community investment and financing plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the enhanced infrastructure community investment and financing plan proposed to be presented at the second public hearing can be reviewed.
(E) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the enhanced infrastructure community investment and financing plan, and shall inform the landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure community investment and financing plan.
(2) At the third public hearing, the public financing authority shall consider all written and oral protests received before the close of the public hearing along with the recommendations, if any, of affected taxing entities, and shall terminate the proceedings or adopt the enhanced infrastructure community investment and financing plan subject to confirmation by the voters at an election called for that purpose. The public financing authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.
(d) An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for this election.
(e) If a majority of the landowners and residents vote against the enhanced infrastructure community investment and financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure community investment and financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure community investment and financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure community investment and financing plan was rejected.
(f) At the hour set in the notices required by subdivision (a), the public financing authority shall consider all written and oral comments.
(g) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the public financing authority may adopt the enhanced infrastructure community investment and financing plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the enhanced infrastructure community investment and financing plan shall be subject to referendum as prescribed by law.
(h) The public financing authority shall consider and adopt an amendment or amendments to an enhanced infrastructure a community investment and financing plan plan, including amendments to the boundaries of the district, in accordance with the provisions of this section.
(i) The public financing authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the enhanced infrastructure financing district’s district’s internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days before the meeting or public hearing.
(1) Notice of the first public hearing shall also be published not less than once a week for four successive weeks before the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(2) Notice of the second public hearing shall also be published not less than 10 days before the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(3) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(j) (1) The public financing authority shall review the enhanced infrastructure community investment and financing plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the enhanced infrastructure financing district. district.
(2) A public financing authority shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days before the public hearing. The public financing authority shall cause the draft report to be posted in an easily identifiable and accessible location on the enhanced infrastructure financing district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each owner of land and each resident within the area covered by the enhanced infrastructure community investment and financing plan and to each taxing entity that has adopted a resolution pursuant to Section 53398.68. The notice shall be mailed by first-class mail, but may be addressed to “occupant.”
(3) The annual report shall contain all of the following:
(A) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.
(B) A chart comparing the actual revenues and expenses, including administrative costs, of the public financing authority to the budgeted revenues and expenses.
(C) The amount of tax increment revenues received.
(D) An assessment of the status regarding completion of the enhanced infrastructure financing district’s projects.
(E) The amount of revenues expended to assist private businesses.
(4) If the public financing authority fails to provide the annual report required by paragraph (3), the public financing authority shall not spend any funds received pursuant to a resolution adopted pursuant to this chapter until the public financing authority has provided the report.

SEC. 15.

 Section 53398.68 of the Government Code is amended to read:

53398.68.
 (a) The public financing authority 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 53398.75) 53398.75), 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 53398.75) and has been filed with the legislative body at or prior to the time of the hearing.
(b) An affected taxing entity shall hold a public hearing on any resolution to participate in a public investment authority pursuant to this section. The affected taxing entity shall post notice of that hearing in an easily identifiable and accessible location on its internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and to the public financing authority.

(b)

(c) Nothing in this section shall be construed to prevent the public financing authority from amending its infrastructure community investment and financing plan and adopting a resolution proposing formation of the enhanced infrastructure financing district public investment authority without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure community investment and financing plan by resolution of the governing body of the affected taxing entity.

SEC. 16.

 Section 53398.69 of the Government Code is amended to read:

53398.69.
 (a) (1) At the conclusion of the hearings pursuant to Section 53398.66, the public financing authority may adopt a resolution proposing adoption of the infrastructure community investment and financing plan, as modified, and formation of the enhanced infrastructure financing district in a manner consistent with Section 53398.68, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the public financing authority shall cease to exist by operation of this section with no further action required of the legislative body and the legislative body may not enact a resolution of intention to establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.
(2) In the case of an infrastructure a community investment and financing plan adopted pursuant to Section 53398.75.7, the proceedings set forth in subdivision (e) of that section shall govern the adoption of the infrastructure community investment and financing plan.
(b) The infrastructure community investment and financing plan shall take effect upon the adoption of the resolution. The infrastructure community investment and financing plan shall specify if the district shall be funded solely through the district’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the public financing authority shall not issue bonds or levy assessments or fees that may be included in the infrastructure community investment and financing plan before one or more of the following:
(1) The adoption adoption, after conducting a public hearing pursuant to Section 53398.79, of a resolution meeting the requirements of Section 53398.77, and, if applicable, subdivision (c) of Section 53398.78, to issue bonds to finance the infrastructure community investment and financing plan.
(2) Compliance with the procedures required in subdivision (f) of Section 53398.75, to levy assessments or fees to finance the infrastructure community investment and financing plan.
(c) In addition, the district may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the enhanced infrastructure financing district on planning and dissemination of information to the residents within the district’s boundaries about the infrastructure community investment and financing plan and planned activities to be funded by the district.

SEC. 17.

 Section 53398.75 of the Government Code is amended to read:

53398.75.
 (a) Any infrastructure community investment and financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district public investment authority 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 53398.69 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:
(1) That portion of the taxes 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 53398.69 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.
(2) That portion of the levied taxes each year specified in the adopted infrastructure community investment and financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53398.68 in excess of the amount specified in paragraph (1) 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 paragraph (1), 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 community investment and 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.
(b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) of this section or of subdivision (b) of Section 53396 shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
(c) The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the community investment and financing plan described in Section 53398.63.
(d) For the purposes of this section, “net available revenue” means periodic distributions to the city or county 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 or county 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 not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code.
(e) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure community investment and financing plan for the city or county that has agreed to participate pursuant to Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist pursuant to the adopted infrastructure community investment and financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
(f) This section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure community investment and financing plan has been approved pursuant to Section 53398.69:
(1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.

SEC. 18.

 Section 53398.75.1 is added to the Government Code, to read:

53398.75.1.
 (a) Not less than 25 percent of all taxes that are allocated to the public investment authority from any affected taxing entity pursuant to this article shall be deposited into a separate fund, which the public investment authority shall establish and use in accordance with this section.
(b) The moneys required to be deposited into a separate fund pursuant to this section shall be used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing, in accordance with paragraph (12) of subdivision (b) and subdivision (d) of Section 53398.52.

SEC. 19.

 Section 53398.75.3 is added to the Government Code, to read:

53398.75.3.
 (a) For purposes of this section:
(1) “ERAF” means the Educational Revenue Augmentation Fund.
(2) “ERAF share” means the county ERAF portion of incremental tax revenue of an affected taxing entity committed under a community investment and financing plan that corresponds to the measure in the assessed valuation of taxable property within the district and is allocated to an affected taxing agency pursuant to Section 97.90 of the Revenue and Taxation Code.
(b) (1) Subject to paragraph (2), a community investment and financing plan may contain a provision providing for the allocation of each affected taxing entity’s ERAF share to the district.
(2) Notwithstanding paragraph (1) and any provision in a community investment and financing plan, a participating affected taxing entity’s ERAF share shall only be allocated to a district if the Department of Finance finds that an allocation pursuant to this section will not result in any increased state fiscal impact, as described in paragraph (1) of subdivision (b) of Section 53398.89.
(c) If a community investment and financing plan includes a provision described in subdivision (b), the total aggregate amount of the ERAF share of each participating affected taxing agency that will be allocated to the district shall not exceed the total amount of incremental tax revenue allocated to the district pursuant to Section 53398.75. The amount of the ERAF share of each affected taxing agency shall be proportional to the amount of incremental tax revenue allocated from that affected taxing agency to the district.

SEC. 20.

 Section 53398.75.5 of the Government Code is amended 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) The Legislature finds and declares all of the following:
(1) California is facing an affordable housing crisis that necessitates the creation of additional tools for local jurisdictions to create new local funding streams that will support equitable infill housing and associated supportive utility and transit infrastructure.
(2) The creation of a NIFTI district will authorize local jurisdictions to capitalize on existing revenues. This will spur private investment and provide additional dollars to support development and revitalization of urbanized areas that include housing for all income levels with equal access to public transit, goods, services, and economic opportunities.
(3) The benefits of a NIFTI district include the ability to fund more affordable housing units, as well as needed infrastructure upgrades to meet the current and future capacity demands.
(c) At any time before or after the adoption of the infrastructure community investment and financing plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) 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 community investment and financing plan requires that at least 20 percent of the total funds received by the district pursuant to this section be used for the acquisition, construction, or rehabilitation of housing for persons and families of low income, as defined in Section 50093 of the Health and Safety Code, or very low income households, as defined in Section 50105 of the Health and Safety Code, for rent or purchase.
(3) (A) The infrastructure community investment and financing plan requires that, prior to the time limits set forth in subdivision (d) of Section 53398.63, at least 20 percent of any new housing units constructed in the district be affordable to persons and families of low or moderate income with at least 6 percent of the new units affordable to very low income households and at least 9 percent of the new units affordable to persons and families of low income.
(B) The infrastructure community investment and financing plan shall ensure that the requirements of this subdivision are met every 10 years.
(4) The use of the revenues derived from the local sales and use tax imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the infrastructure community investment and 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.
(d) Notwithstanding Section 53398.52, revenues collected and allocated for the purposes of this section shall not be used for highway or highway interchange improvements.
(e) The enhanced infrastructure financing district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(f) A legislative body shall not adopt an ordinance terminating an enhanced infrastructure financing district a public investment authority created pursuant to this section if the district has not complied with its affordable housing obligations.
(g) Paragraph (1) of subdivision (c) of Section 1720 of the Labor Code shall not apply to projects financed by the enhanced infrastructure financing district.

SEC. 21.

 Section 53398.75.7 of the Government Code is amended to read:

53398.75.7.
 (a) This section shall be known and may be cited as the Second Neighborhood Infill Finance and Transit Improvements Act, or NIFTI-2.
(b) (1) At any time before or after the adoption of the infrastructure community investment and financing plan, a city, county, or city and county may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), if all of the following apply:
(A) The area to be financed with funds received pursuant to this section is within one-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(B) The infrastructure community investment and financing plan requires that at least 40 percent of the total funds received by the district pursuant to this section be used for the acquisition, construction, or rehabilitation of housing, including the costs of predevelopment and land acquisition, for households with incomes below 60 percent of area median income for rent or purchase. Predevelopment costs include, but are not limited to, site control, engineering studies, architectural plans, application fees, legal services, permits, bonding, and site preparation.
(C) The infrastructure community investment and financing plan requires that 50 percent of the housing funds are used to develop housing affordable to and occupied by households with incomes below 60 percent and greater than 30 percent of area median income, and 50 percent of the housing funds are used for either housing affordable to and occupied by households with incomes below 30 percent of area median income or permanent supportive housing to help homeless persons get off the street.
(D) The infrastructure community investment and financing plan gives first priority for occupancy of housing funded through this plan to income-qualified households displaced from the district through no fault of their own, and secondary priority for occupancy of housing funded through this program is given to households with a member or members employed within two miles of the district.
(E) The infrastructure community investment and financing plan requires that at least 10 percent of the total funds received by the district pursuant to this section be used for investments in the capital costs of parks, urban forestry, or permanent greening improvements along boulevards, streets, or other public areas within a district, or active transportation capital projects that qualify under the Active Transportation Program (Chapter 8 (commencing with Section 2380) of Division 3 of the Streets and Highways Code), including pedestrian or bicycle facilities or supportive infrastructure, including connectivity to transit stations.
(F) The boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district.
(G) The use of the revenues derived from the local sales and use taxes imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the infrastructure community investment financing plan is consistent with the purposes for which that tax is imposed.
(H) If the infrastructure community investment and financing plan proposes to allocate tax revenues of that entity to the district that are derived from the local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), the city, county, or city and county has received the consent of any impacted transportation agency that receives tax revenues derived from that any tax adopted pursuant to that law, and has ensured that existing or planned transportation operations and capital projects will not be negatively impacted.
(2) This section does not authorize a city, county, or city and county to allocate all, or a portion of any sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), that was approved by the voters for a special purpose not related to the purposes in paragraph (1).
(c) The remaining funds may be used for any of the following:
(1) Multifamily affordable housing projects or mixed-use projects with affordable multifamily housing and ground floor commercial uses that support infill and compact development.
(2) Transit capital projects, including transit stations and programs supporting transit ridership, including waterborne transit.
(3) Transit-oriented development projects, including affordable housing and infrastructure at or near transit stations or connecting those developments to transit stations.
(4) Capital projects that implement local complete streets programs.
(5) Parking, including detached and decoupled parking structures that provide parking for residents, businesses, or visitors in lieu of onsite parking for proposed developments. These parking structures should provide no more than one space for each residential unit. The ground floors in these parking structures should provide space for pedestrian-oriented commercial or public uses. Revenues from parking may be used to implement transportation demand management programs to reduce automobile trips to and from the district.
(6) Other projects or programs designed to reduce greenhouse gas emissions and other criteria air pollutants by reducing automobile trips and vehicle miles traveled within a community.
(d) The infrastructure community investment and financing plan shall ensure that the requirements of this section are met every 10 years.
(e) (1) Sections 53398.66 and 53398.67 shall not apply to the adoption of an enhanced infrastructure a community investment and financing plan that includes the allocation of tax revenues pursuant to this section.
(2) (A) The public financing authority shall consider adoption of the enhanced infrastructure community investment and financing plan at three public hearings that shall take place at least 30 days apart.
(B) At the first public hearing, the public financing authority shall hear all written and oral comments, but take no action.
(C) At the second public hearing, the public financing authority shall consider any additional written and oral comments and take action to modify or reject the enhanced infrastructure community investment and financing plan. If the enhanced infrastructure community investment and financing plan is not rejected at the second public hearing, then the public financing authority shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the enhanced infrastructure community investment and financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure community investment and financing plan.
(3) The draft enhanced infrastructure community investment and financing plan shall be made available to the public and to each landowner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the public financing authority to present the draft enhanced infrastructure community investment and financing plan, answer questions about the enhanced infrastructure community investment and financing plan, and consider comments about the enhanced infrastructure community investment and financing plan.
(4) (A) Notice of the meeting required by paragraph (3) and the public hearings required by this paragraph shall be given in accordance with paragraph (11). The notice shall do all of the following, as applicable:
(i) Describe specifically the boundaries of the proposed area.
(ii) Describe the purpose of the enhanced infrastructure community investment and financing plan.
(iii) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure community investment and financing plan may appear to provide written or oral comments to the enhanced infrastructure financing district.
(iv) Notice of the second public hearing shall include a summary of the changes made to the enhanced infrastructure community investment and financing plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the enhanced infrastructure community investment and financing plan proposed to be presented and adopted at the second public hearing can be reviewed.
(v) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the enhanced infrastructure community investment and financing plan adopted pursuant to paragraph (2), and shall inform the landowner and resident of his or her their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure community investment and financing plan.
(B) At the third public hearing, the public financing authority shall consider all written and oral protests received prior to the close of the public hearing and shall terminate the proceedings or adopt the enhanced infrastructure community investment and financing plan subject to confirmation by the voters at an election called for that purpose. The public financing authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.
(5) An election required pursuant to subparagraph (B) of paragraph (4) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for this election.
(6) If a majority of the landowners and residents vote against the enhanced infrastructure community investment and financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure community investment and financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure community investment and financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure community investment and financing plan was rejected.
(7) At the hour set in the notice required by paragraph (2), the public financing authority shall consider all written and oral comments.
(8) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the public financing authority may adopt the enhanced infrastructure community investment and financing plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the enhanced infrastructure community investment and financing plan shall be subject to referendum as prescribed by law.
(9) For the purposes of this chapter, the enhanced infrastructure community investment and financing plan shall be the enhanced infrastructure community investment and financing plan adopted pursuant to this section.
(10) The public financing authority shall consider and adopt an amendment or amendments to an enhanced infrastructure a community investment and financing plan plan, including amendments to the boundaries of the district, in accordance with the provisions of this section.
(11) The public financing authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the enhanced infrastructure financing district’s Internet Web site internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days prior to the meeting or public hearing.
(A) Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(B) Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(C) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), 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 community investment and financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.
(f) (1) The public financing authority shall review the enhanced infrastructure community investment and financing plan at least annually and make any amendments that are necessary and appropriate in accordance with the procedures set forth in paragraph (5) and shall require the preparation of an annual independent financial audit paid for from revenues of the enhanced infrastructure financing district.
(2) A public financing authority shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The public financing authority shall cause the draft report to be posted in an easily identifiable and accessible location on the enhanced infrastructure financing district’s Internet Web site internet website and shall mail a written notice of the availability of the draft report on the Internet Web site internet website to each owner of land and each resident within the area covered by the enhanced infrastructure community investment and financing plan and to each taxing entity that has adopted a resolution pursuant to Section 53398.68. The notice shall be mailed by first-class mail, but may be addressed to “occupant.”
(3) The annual report shall contain all of the following:
(A) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.
(B) A chart comparing the actual revenues and expenses, including administrative costs, of the public financing authority to the budgeted revenues and expenses.
(C) The amount of tax increment revenues received.
(D) The amount of revenues expended for housing meeting the requirements of this section.
(E) An assessment of the status regarding completion of the enhanced infrastructure financing district’s projects.
(F) The amount of revenues expended to assist private businesses.
(4) If the public financing authority fails to provide the annual report required by paragraph (1), the public financing authority shall not spend any funds received pursuant to a resolution adopted pursuant to this section until the public financing authority has provided the report.
(5) Every 10 years, at the public hearing held pursuant to paragraph (2), the public financing authority shall conduct a protest proceeding to consider whether the landowners and residents within the enhanced infrastructure financing district wish to present oral or written protests against the enhanced infrastructure financing district. Notice of this protest proceeding shall be included in the written notice of the hearing on the annual report and shall inform the landowner and resident of his or her their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure community investment and financing plan on and after the date of the election described in paragraph (6). The public financing authority shall consider all written and oral protests received prior to the close of the public hearing.
(6) If there is a majority protest, the public financing authority shall not take any further action to implement the enhanced infrastructure community investment and financing plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the landowners and residents file protests, then the public financing authority shall call an election of the landowners and residents in the area covered by the enhanced infrastructure community investment and financing plan, and shall not initiate or authorize any new projects until the election is held. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents at least 18 years of age or older in the area.
(7) An election required pursuant to paragraph (6) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for holding this election.
(8) If a majority of the landowners and residents vote against the enhanced infrastructure community investment and financing plan, then the public financing authority shall not take any further action to implement the enhanced infrastructure community investment and financing plan on and after the date of the election held pursuant to paragraph (5). This subdivision shall not prevent the public financing authority from taking any and all actions and appropriating and expending funds, including, but not limited to, any and all payments on bonded or contractual indebtedness, to carry out and complete projects for which expenditures of any kind had been made prior to the date of the election.
(g) Notwithstanding Section 53398.52, revenues collected and allocated for the purposes of this section shall not be used for highway or highway interchange improvements.
(h) The district shall require, by recorded covenants or restrictions, that affordable housing units financed pursuant to this section remain permanently available at affordable housing costs to, and occupied by, very low income households, persons and families of low income, or persons and families of low or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(i) A legislative body shall not adopt an ordinance terminating an enhanced infrastructure financing district a public investment authority created pursuant to this section if the district has not complied with its affordable housing obligations.
(j) Notwithstanding Article 4 (commencing with Section 53398.77), bonds issued by a district pursuant to this section may be issued without voter approval.
(k) Paragraph (1) of subdivision (c) of Section 1720 of the Labor Code shall not apply to projects financed by the enhanced infrastructure financing district.

SEC. 22.

 Section 53398.75.9 is added to the Government Code, to read:

53398.75.9.
 (a) Notwithstanding any other law, at any time before or after the adoption of the community investment and financing plan, the city or county that proposed the formation of the district, or an affected taxing entity that has adopted a resolution to participate in the district pursuant to Section 53398.68, may adopt a resolution to allocate tax revenues of that entity to the district, including revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code).
(b) The use of the revenues derived from the local sales and use tax imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) pursuant to the community investment and financing plan shall be consistent with the purposes for which that tax is imposed.

SEC. 23.

 Section 53398.77 of the Government Code is amended to read:

53398.77.
 The public financing authority may, by majority vote, issue bonds pursuant to this chapter by adopting a resolution that includes all of the following:
(a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue.
(b) The estimated cost of the facilities or developments, 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 revenue, including revenue available pursuant to Section 53398.75.3, 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 principal amount of the bonds that shall be consistent with the amount specified in subdivision (b).
(h) The date the bonds will bear.
(i) The date of maturity of the bonds.
(j) The denomination of the bonds.
(k) The form of the bonds.
(l) The manner of execution of the bonds.
(m) The medium of payment in which the bonds are payable.
(n) The place or manner of payment and any requirements for registration of the bonds.
(o) The terms of call or redemption, with or without premium.

SEC. 24.

 Section 53398.79 is added to the Government Code, to read:

53398.79.
 Before approving the issuance of debt pursuant to this article, the public financing authority shall hold a public hearing on any resolution proposed to be adopted pursuant to Section 53398.77. The public financing authority shall post notice of that hearing in an easily identifiable and accessible location on the public investment authority’s internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and to each affected taxing entity.

SEC. 25.

 Section 53398.87 of the Government Code is amended to read:

53398.87.
 Upon the approval of its governing board, a city, county, or special district that contains territory within the boundaries of a district, may loan moneys to the district to fund those activities described in the infrastructure community investment and financing plan approved and adopted pursuant to Section 53398.69. Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law it is the intent of the Legislature that any loan issued to a public financing authority by a governmental entity shall be repaid fully unless agreed to otherwise between the authority and the governmental entity.

SEC. 26.

 Article 5 (commencing with Section 53398.89) is added to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the Government Code, to read:
Article  5. State Oversight

53398.89.
 (a) For purposes of this section, “state fiscal impact” means the impact on the amount that the state is required to apportion to local educational entities, in accordance with existing requirements, with respect to any public investment authority formed pursuant to this chapter.
(b) Upon adoption of a resolution to form a public investment authority pursuant to Section 53398.69, the public financing authority shall submit a copy of that resolution, along with a copy of the community investment and financing plan, to the Department of Finance for review to determine the state fiscal impact based on the anticipated increase in property tax revenue as a result of the facilities and projects proposed to be financed in the community investment and financing plan. Upon competition of this review, the Department of Finance shall make one of the following findings, as applicable:
(1) The activities of the district under the community investment and financing plan, including any division of taxes pursuant to Section 53398.75 or dedication of revenues pursuant to Section 53398.75.3, will not result in any increased state fiscal impact.
(2) The activities of the district under the community investment and financing plan, including any division of taxes pursuant to Section 53398.75 or dedication of revenues pursuant to Section 53398.75.3, will result in an increased state fiscal impact.
(c) The Department of Finance shall transmit a written copy of the finding made pursuant to subdivision (b) to the public financing authority and to the auditor for the county in which the district is located. If the community investment and financing plan includes a provision described in Section 53398.75.3 and the Department of Finance makes the finding described in paragraph (1) of subdivision (b), the written copy of that finding provided to the county auditor shall also notify the auditor that they may make the revenue allocations described in Section 97.90 of the Revenue and Taxation Code.

53398.90.
 (a) No later than January 1 of the first odd-numbered year following the adoption of a resolution to form a public investment authority pursuant to Section 53398.69, and each January 1 of every odd-numbered year thereafter until the district ceases to exist, the public financing authority shall submit a report to the Department of Finance that includes, at minimum, the following information:
(1) Each facility and each project designated in the community investment and financing plan for which the district has provided financing.
(2) The location of each facility and each project described in paragraph (1).
(3) The amount of financing the district has provided to each facility and each project described in paragraph (1).
(b) The Department of Finance shall compile and maintain a publicly accessible list of every facility and project financed in this state by a district, based on the report submitted by each public financing authority pursuant to subdivision (a).

SEC. 27.

 Section 65621 of the Government Code is amended to read:

65621.
 (a) A local government may establish a Workforce Housing Opportunity Zone by preparing an environmental impact report pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code to identify and mitigate, to the extent feasible, environmental impacts resulting from the establishment of that zone, and by adopting a specific plan that shall include text and a diagram or diagrams that specify all of the following in detail:
(1) The distribution and location of a minimum of 100 units to a maximum of 1,500 residential dwelling units. A local government shall not include more than 50 percent of the number of units in its regional housing needs allocation in a Workforce Housing Opportunity Zone. If a local government whose regional housing needs allocation is less than 100 units chooses to establish a Workforce Housing Opportunity Zone, then it shall include its entire allocation in the zone.
(2) The proposed distribution, location, and extent and intensity of major components of public and private transportation, sewage, water, drainage, solid waste, disposal, energy, and other essential facilities needed to support the construction of the residential dwelling units. Essential facilities may include improvements needed to K–12 schools that serve areas within the zone.
(3) The following mitigation measures that will apply to all development constructed within the zone in addition to any and all mitigation measures identified in the environmental impact report prepared for the specific plan:
(A) Traffic mitigation measures.
(B) Water quality and other public utility mitigation measures, including sewage, drainage, solid waste disposal, and energy.
(C) Natural resource protection mitigation measures.
(4) Density ranges for multifamily housing for which the minimum densities shall not be less than those deemed appropriate to accommodate housing for lower income households as set forth in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, and a density range for single-family attached or detached housing for which minimum densities shall not be less than 10 units to the acre. A density range shall provide the minimum dwelling units per acre and the maximum dwelling units per acre.
(5) Uniformly applied development policies or standards that will apply to all development constructed within the zone, including, for example, parking ordinances, public access requirements, grading ordinances, hillside development ordinances, flood plain ordinances, habitat protection or conservation ordinances, view protection ordinances, and requirements for reducing greenhouse gas emissions.
(6) The manner in which funding will be provided for the infrastructure and services necessary for the development within the zone, which may include an Enhanced Infrastructure Financing District or a Community Revitalization and Investment Authority. a public investment authority or a community revitalization and investment authority.
(7) Design review standards.
(b) Before beginning the formal environmental evaluation of the specific plan, the planning commission and the legislative body of the local government shall each hold a public hearing to hear oral, and receive written, comments about a draft of the specific plan. There shall be a minimum of 30 days between the public hearings. The planning commission may recommend modifications of the draft to the legislative body. At the conclusion of the public hearing, the legislative body of the local government shall direct that formal environmental evaluation of the specific plan proceed in accordance with the modified draft.
(c) (1) If the local government has a planning commission authorized by local ordinance or resolution to review and recommend action on a proposed general plan, the commission shall hold at least one public hearing before approving a recommendation on the adoption of a specific plan pursuant to this subdivision. The local government shall provide the notice of the hearing pursuant to Section 65090 and paragraphs (1) and (3) of subdivision (a) of Section 65091.
(2) The legislative body of the local government shall hold at least two public hearings to consider the planning commission’s recommendation and any and all public testimony. There shall be a minimum of 30 days between the public hearings to allow sufficient time to modify the plan in response to the public testimony as directed by the legislative body. The local government shall provide the notice of the hearing pursuant to Section 65090 and paragraphs (1) and (3) of subdivision (a) of Section 65091.
(d) The local government shall provide notice of the public hearings required by subdivisions (b) and (c) pursuant to Section 65091, including notice to local agencies, owners of real property within the zone, and each owner of real property within 300 feet of the real property within the zone.
(e) The legislative body of the local government, after adopting the plan, may impose a specific plan fee upon persons seeking government approvals within a zone. The fees shall be established to defray the cost of preparation, adoption, and administration of the plan, including costs incurred pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. As nearly as can be estimated, the fee charged shall be a prorated amount in accordance with the applicant’s relative benefit derived from the plan. The local government shall only use the fees to offset its costs and to reimburse funds borrowed from the Department of Housing and Community Development pursuant to Section 65624.

SEC. 28.

 Section 1690 of the Harbors and Navigation Code is amended to read:

1690.
 The Legislature finds and declares all of the following:
(a) The state has a compelling interest in the success of its ports and harbors because they provide significant economic benefit to the state in terms of jobs, personal income, business revenue, and taxes. It is the policy of the state that, because of that compelling interest, legislation in this area is a matter of statewide concern and is necessary to develop the harbors and ports of this state for the benefit of the people.
(b) Ports and harbors are the vital interface between water and land transportation for trade with the Pacific Rim countries and other trade. In this respect, the specific management of the state’s ports and harbors by specific harbor and port districts established pursuant to Division 8 (commencing with Section 5800) are of equal statewide concern and importance as the management of granted lands held in trust for the state by a local port or harbor district.
(c) Historically, California’s ports and harbors have been self-supporting. Most port and harbor districts do not levy or expend funds generated by local taxes, as most of their operations are funded directly through fees and other revenue the ports generate from their users or tenants, in addition to occasional state and federal grants.
(d) The report of the California Transportation Commission entitled “Improving Access to California’s Ports,” dated February 1990, found that eight hundred ninety-seven million dollars ($897,000,000) is needed for port access transportation projects. By December 2014, the “California Freight Mobility Plan” report of the Department of Transportation identified a comprehensive list of freight projects in the state, including port access transportation projects, with an estimated total cost of one hundred thirty-eight billion dollars ($138,000,000,000).
(e) In addition to port access transportation projects, there is a need for new harbor facilities and infrastructure investments that will enhance California’s competitiveness for international cargoes, grow employment, yield significant economic development, increase state and local tax revenues, and reduce impacts to environmental quality from goods movement.
(f) Because of limited revenues from port operations, shrinking federal and state funding and the increasing demand for those limited funds, ports and harbors are no longer able to finance projects of this magnitude without new funding mechanisms. One such mechanism that can be used to finance port and harbor development projects is the enhanced infrastructure financing district. public investment authority.
(g) It is the intent of the Legislature to assist in the reduction of local borrowing costs, help accelerate the construction, repair, and maintenance of port capital improvements, and promote greater use of existing and new financial instruments and mechanisms.
(h) It is further the intent of the Legislature to assert the state’s plenary power over the financing of port and harbor infrastructure by harbor agencies as matters of statewide concern and to authorize the use of tax increment financing, as provided in Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of the Government Code, to support investment of tax revenues in port and harbor infrastructure.
(i) The Legislature empowers local legislative bodies with specific and exclusive delegated authority to manage the state’s ports and harbors by legislative grant and by establishment of special districts pursuant to this code. In addition, the Legislature delegates to public financing authorities the power to establish seaport infrastructure financing districts for the purpose of leveraging investment in support of the statewide interest in improving port and harbor infrastructure.

SEC. 29.

 Section 1699 of the Harbors and Navigation Code is amended to read:

1699.
 “Seaport infrastructure financing district” means an enhanced infrastructure financing district a public investment authority that finances port or harbor infrastructure created in accordance with Chapter 3 (commencing with Section 1710) of this part and Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of the Government Code.

SEC. 30.

 Section 97.90 is added to the Revenue and Taxation Code, to read:

97.90.
 Notwithstanding any other law, commencing with the first fiscal year after receiving notification pursuant to subdivision (c) of Section 53398.89 of the Government Code that the auditor may make the revenue allocations described in this section, and each fiscal year thereafter until the public investment authority ceases to exist, the following shall apply with respect to the allocation of ad valorem property tax revenue:
(a) The county auditor shall do both of the following:
(1) Increase the total amount of ad valorem property tax revenue that is otherwise required to be allocated to a qualifying local agency by the local public investment amount.
(2) (A) Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund by the aggregate of the local public investment amount allocated to all qualifying local agencies in the county..
(B) If, for any fiscal year, there is not enough ad valorem property tax revenue that is otherwise required to be allocated to a county Educational Revenue Augmentation Fund for the auditor to complete the allocation reduction required by subparagraph (A), the auditor shall additionally reduce the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in the county for that fiscal year by an amount equal to the difference between the county equity amount and the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund for that fiscal year. This reduction for each school district in the county shall be the percentage share of the total reduction that is equal to the proportion that the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the school district bears to the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts in a county. For purposes of this subparagraph, “school districts” do not include any districts that are excess tax school entities, as defined in Section 95.
(C) Any reduction in the amount of ad valorem property tax revenues deposited in the county’s Educational Revenue Augmentation Fund as a result of subparagraph (A) shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and shall not be applied to reduce the amounts of ad valorem property tax revenues that are otherwise required to be allocated from that fund to community college districts.
(b) In accordance with the requirements of Section 53398.75.3 of the Government Code, a qualifying local agency shall allocate the full local public investment amount to the public investment authority, to be used in accordance with the community investment and financing plan of that public investment authority.
(c) For purposes of this section:
(1) “Local public investment amount” means an amount equal to the aggregate amount of incremental ad valorem property tax revenue attributable to the amount of taxes levied by each qualifying local agency that are allocated to a public investment authority, not to exceed the aggregate amount limitation described in subdivision (c) of Section 53398.75.3.
(2) “Public investment authority” means a public investment authority formed within the county pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 of the Government Code.
(3) “Qualifying local agency” means an affected taxing agency, as that term is defined in Section 53398.51 of the Government Code, that, pursuant to Section 53398.68 of the Government Code, adopts a resolution to participate in a community investment and financing plan that provides for an allocation of revenues in accordance with Section 53398.75.3 of the Government Code.
(d) For any fiscal year in which this section applies, ad valorem property tax revenue allocations made pursuant to Sections 96.1 and 96.5 shall not incorporate the allocation adjustments made by this section.

SEC. 31.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.