Bill Text


PDF |Add To My Favorites |Track Bill | print page

SB-780 Local finance: public investment authorities.(2021-2022)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 05/03/2021 10:00 AM
SB780:v96#DOCUMENT

Amended  IN  Senate  May 03, 2021
Amended  IN  Senate  April 13, 2021
Amended  IN  Senate  April 05, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 780


Introduced by Senator Cortese

February 19, 2021


An act to amend Sections 53398.51.1, 53398.59, 53398.63, 53398.64, 53398.66, 53398.68, 62001, 62002, 62003, and 62006 of the Government Code, relating to local finance.


LEGISLATIVE COUNSEL'S DIGEST


SB 780, as amended, Cortese. Local finance: public investment authorities.
Existing law establishes enhanced infrastructure financing districts to finance public capital facilities or other specified projects of communitywide significance. Existing law provides for the membership of the governing body of the district, referred to as the public financing authority. If a district has only one participating affected taxing entity, existing law requires the public financing authority’s membership to consist of 3 members of the legislative body and 2 members of the public chosen by the legislative body. If a district has 2 or more participating affected taxing entities, existing law requires the public financing authority’s membership to consist of a majority of members from the legislative bodies of the participating entities, and a minimum of 2 members of the public chosen by the legislative bodies of the participating entities.
This bill would authorize the legislative bodies to appoint an alternate member to the public financing authority who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. If a district has more than 3 participating affected taxing entities, the bill would authorize the legislative bodies of the taxing entities to, upon agreement, appoint only one member of their respective legislative bodies, and one alternate member, in addition to the public members.
Existing law authorizes the legislative body of a city or a county to designate a proposed enhanced infrastructure financing district by adopting a resolution of intention to establish the proposed district which, among other things, is required to state that an enhanced infrastructure financing district is proposed and describe the boundaries of the proposed district. Existing law requires the public financing authority to direct the preparation of and adopt an infrastructure financing plan consistent with the general plan and consisting of, among other things, a financing section including a plan for financing the public facilities, a limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan, and a date, not more than 45 years from the date on which the issuance of the bonds is approved for the plan on which the district will cease to exist, by which time all tax allocation to the district will end. Existing law provides that the infrastructure plan together with any report required by the California Environmental Quality Act be sent to each landowner within the proposed district, the public financing authority, the planning commission, and the legislative body. 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, requires mailed notice to each landowner, each resident, and each taxing entity, as specified, and requires the infrastructure financing plan to be adopted by ordinance in specified circumstances. Existing law requires the public financing authority to review the infrastructure financing plan at least annually and make any amendments that are necessary and appropriate. Existing law specifies the division of taxes used to finance an enhanced infrastructure financing district.
This bill would authorize the legislative body to divide the district into multiple project areas, and require the resolution to form the district to state any project area proposed within the district. Where the district is divided into project areas, the bill would authorize the financing section of the infrastructure financing plan to provide a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end, and a date on which the district’s authority to repay indebtedness with incremental tax revenues will end, as provided, and would authorize separate and unique time limits applicable to each project area. The bill would require the infrastructure financing plan to be consistent with the specific plan, if applicable. The bill would require the legislative body to include any project areas, if proposed, in the infrastructure financing plan. The bill would authorize an alternative procedure to the mailed notice requirements and would authorize the infrastructure financing plan to be adopted by resolution rather than by ordinance. The bill would specify vote thresholds, notice, and public hearing requirements for amendment of the infrastructure financing plan. The bill would specify the division of taxes for a taxing entity approving an infrastructure financing plan after the district formation, as provided.
Existing law establishes community revitalization and investment authority to carry out a community revitalization plan within a community revitalization and investment area. Existing law authorizes a city, county, or city and county to adopt a resolution creating an authority consisting of 3 members of the legislative body of the city, county, or city and county that created the authority and 2 public members. Existing law authorizes a city, county, city and county, and special district, as defined, to create an authority by entering into a joint powers agreement, consisting of a majority of members from the legislative bodies of the public agencies that created the authority and a minimum of 2 public members.
This bill would authorize the legislative bodies to appoint an alternate member to the community revitalization and investment authority who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. If an authority has more than 3 participating affected taxing entities, the bill would authorize the legislative bodies of the taxing entities to, upon agreement, appoint only one member of their respective legislative bodies, and one alternate member, in addition to the public members.
Existing law provides that an authority may carry out a community revitalization plan within a community revitalization and investment area and requires that at least 80% of the land calculated by census tracts, census block groups, as defined, or a combination of both that meet certain requirements regarding income, unemployment, crime rates, deteriorated infrastructure, residential structures, or commercial structures; or as an alternative, if the census tracts or census block group are within a disadvantaged community, as defined.
This bill would lower that percentage to 70% and would add, as an alternative, sites identified in the inventory of land in a city or county’s housing element that are suitable for residential development that are zoned to allow transit priority projects, as provided. The bill would make various conforming changes.
Existing law requires an authority to adopt a community revitalization and investment plan that may include a provision for the receipt of tax increment funds consisting of certain required provisions, including a provision that the repayment of all of the authority’s debts and obligations, fulfillment of all of the authority’s housing obligations, and dissolution must occur in no more than 45 years, at which time no further taxes shall be allocated to the authority. Existing law requires the authority to review the plan at least annually and to make amendments that are necessary and appropriate according to specified procedures.
This bill would revise these provisions to require the community revitalization and investment plan to include project areas and require that dissolution occur in no more than 45 years from the date upon which the issuance of debt is approved for a plan, or approved for a project area, as specified. The bill would authorize the plan to provide a date on which the plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues will end, as provided, and would authorize separate and unique time limits applicable to each project area. The bill would specify vote thresholds, notice, and public hearing requirements for amendment of the plan.
Existing law requires the authority to hold a protest proceeding every 10 years to consider whether the property owners and residents within the plan area wish to present oral or written protests against the authority.
This bill would revise that provision to require the authority to, every 15 years, conduct a public hearing to consider whether property owners and residents within the plan area wish to propose amendments to the plan, and conduct a protest proceeding against the authority undertaking new projects, as provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 53398.51.1 of the Government Code is amended to read:

53398.51.1.
 (a) The public financing authority shall have a membership consisting of one of the following, as appropriate:
(1) 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, and two members of the public chosen by the legislative body. The legislative body may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The appointment of the public members shall be subject to the provisions of Sections 54970 and 54972.
(2) 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, or their appointed designees, and a minimum of two members of the public chosen by the legislative bodies of the participating entities. A legislative body of a participating affected taxing entity may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The appointment of the public members shall be subject to the provisions of Section Sections 54970 and 54972.
(3) If a district has more than three participating affected taxing entities, the legislative bodies of the taxing entities may, upon agreement by all participating affected taxing entities, appoint only one member and one alternate member of their respective legislative bodies to the public financing authority, 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 Sections 54970 and 54972.
(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. 2.

 Section 53398.59 of the Government Code is amended to read:

53398.59.
 A legislative body of a city or county may designate one or more proposed enhanced infrastructure financing districts pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:
(a) State that an enhanced infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable. The map may identify, within a district, certain areas which shall be referred to as “project areas.”
(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 pursuant to Section 53398.75.5, 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.
(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. 3.

 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 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district which shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, 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 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) Either of the following:
(A) 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.
(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.
(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. 4.

 Section 53398.64 of the Government Code is amended to read:

53398.64.
 (a) The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed 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.
(b) As an alternative to mailing documents pursuant to subdivision (a), and providing the additional 10-day mailed notices, pursuant to subdivision (i) of Section 53398.66, for both the initial meeting required by subdivision (b) of Section 53398.66, and for the first scheduled public hearing on the plan, the official designated pursuant to Section 53398.62 may mail a notice to each landowner, resident, and affected taxing entity at least 40 days prior to the first scheduled public hearing on the plan, held pursuant to paragraph (2) of subdivision (a) of Section 53398.66. This notice shall include all of the following:
(1) A summary of the plan including all required information listed in paragraph (1) of subdivision (c) of Section 53398.66.
(2) The internet website where the applicable documents, including those described in subdivision (a), will be made available for public viewing or inspection.
(3) A designated contact person to receive and process any requests for a mailed packet of all materials.
(4) The location, date, and time of both the meeting to be held in accordance with subdivision (b) of Section 53398.66 and the first scheduled public hearing in accordance with paragraph (2) of subdivision (a) of Section 53398.66.
(c) In addition to a notice provided by subdivision (b), the official designated pursuant to Section 53398.62 shall provide notices for the second and third public hearing on the plan, as described in paragraph (3) of subdivision (a) of Section 53398.66, in accordance with subdivision (i) of Section 53398.66.

SEC. 5.

 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 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 financing plan. If the enhanced infrastructure 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 financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure financing plan.
(b) The draft-enhanced infrastructure financing plan shall be made available to the public and to each landowner within the area on a designated internet website and at a meeting held at least 30 days before 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 financing plan, answer questions about the enhanced infrastructure financing plan, and consider comments about the enhanced infrastructure 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 financing plan.
(C) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure financing plan may appear to provide written or oral comments to the enhanced infrastructure financing district.
(D) Notice of the second public hearing shall include a summary of the changes made to the enhanced infrastructure 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 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 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 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 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 financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure 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 financing plan at the conclusion of the third public hearing by resolution. The resolution adopting the enhanced infrastructure 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 financing plan 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 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. A public finance authority may meet the mailed notice requirements of this subdivision for the meeting held pursuant to subdivision (b) and the first public hearing on the proposed enhanced infrastructure financing plan if it has mailed a notice in compliance with subdivision (b) of Section 53398.64.
(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 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 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 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 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.
(A) Amendments to an approved infrastructure financing plan, including proposals to finance affordable housing and additional eligible projects, as specified in Section 53398.52, may be approved by a majority vote of the governing board at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents, and affected taxing entities.
(B) Amendments that propose any of the following shall be adopted in accordance with all notices and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial proposed enhanced infrastructure financing plan:
(i) Addition of new territory to a district.
(ii) Increase of the limit of the total number of dollars in local taxes allocated to the plan.
(iii) Approval of a public facility or development that was not proposed to be financed or assisted by the district in the approved plan.
(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 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. 6.

 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) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity which is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53398.75) and has been filed with the legislative body at or prior to the time of the hearing.
(b) Nothing in this section shall be construed to prevent the public financing authority from amending its infrastructure financing plan and adopting a resolution proposing formation of the enhanced infrastructure financing district without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.
(c) If after the date of district formation, an affected taxing entity adopts a resolution approving the plan and to participate in the division of taxes used to finance an enhanced infrastructure financing district, the division of taxes shall be based upon the last equalized assessment roll that is used for the district pursuant to paragraph (2) of subdivision (a) of Section 53398.75.

SEC. 7.

 Section 62001 of the Government Code is amended to read:

62001.
 (a) A community revitalization and investment authority is a public body, corporate and politic, with jurisdiction to carry out a community revitalization plan within a community revitalization and investment area. The authority shall be deemed to be the “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution for purposes of receiving tax increment revenues. The authority shall have only those powers and duties specifically set forth in Section 62002.
(b) (1) An authority may be created in any one of the following ways:
(A) A city, county, or city and county may adopt a resolution creating an authority. The composition of the governing board shall be comprised as set forth in subdivision (c).
(B) A city, county, city and county, and special district, as special district is defined in subdivision (m) of Section 95 of the Revenue and Taxation Code, or any combination thereof, may create an authority by entering into a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1.
(2) (A) A school entity, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, may not participate in an authority created pursuant to this part.
(B) A successor agency, as defined in subdivision (j) of Section 34171 of the Health and Safety Code, may not participate in an authority created pursuant to this part, and an entity created pursuant to this part shall not receive any portion of the property tax revenues or other moneys distributed pursuant to Section 34188 of the Health and Safety Code.
(3) An authority formed by a city or county that created a redevelopment agency that was dissolved pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code shall not become effective until the successor agency or designated local authority for the former redevelopment agency has adopted findings of fact stating all of the following:
(A) The agency has received a finding of completion from the Department of Finance pursuant to Section 34179.7 of the Health and Safety Code.
(B) Former redevelopment agency assets which are the subject of litigation against the state, where the city or county or its successor agency or designated local authority are a named plaintiff, have not been or will not be used to benefit any efforts of an authority formed under this part unless the litigation has been resolved by entry of a final judgment by any court of competent jurisdiction and any appeals have been exhausted.
(C) The agency has complied with all orders of the Controller pursuant to Section 34167.5 of the Health and Safety Code.
(c) (1) The governing board of an authority created pursuant to subparagraph (A) of paragraph (1) of subdivision (b) shall be appointed by the legislative body of the city, county, or city and county that created the authority and shall include three members of the legislative body of the city, county, or city and county that created the authority and two public members. The legislative body may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The appointment of the two public members shall be subject to Sections 54970 and 54972. The two public members shall live or work within the community revitalization and investment area.
(2) The governing body of the authority created pursuant to subparagraph (B) of paragraph (1) of subdivision (b) shall be comprised of a majority of members from the legislative bodies of the public agencies that created the authority, and a minimum of two public members who live or work within the community revitalization and investment area. A legislative body of a participating affected taxing entity may appoint one of its members to be an alternate member of the legislative body who may serve and vote in place of a member who is absent or disqualifies themselves from participating in a meeting of the authority. The majority of the board shall appoint the public members to the governing body. The appointment of the public members shall be subject to Sections 54970 and 54972.
(3) If an authority has more than three participating affected taxing entities, the legislative bodies of the taxing entities may, upon agreement by all participating affected taxing entities appoint only one member of their respective legislative bodies, and one alternate member, to the authority, 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 Sections 54970 and 54972.
(d) An authority may carry out a community revitalization plan within a community revitalization and investment area. Not less than 70 percent of the land calculated by census tracts, census block groups, as defined by the United States Census Bureau, or any combination of both within the area shall be characterized by both of the following conditions:
(1) An annual median household income that is less than, at the option of the authority, 80 percent of the statewide, countywide, or citywide annual median income.
(2) Three of the following four conditions:
(A) An unemployment rate that is at least 3 percentage points higher than the statewide average annual unemployment rate, as defined by the report on labor market information published by the Employment Development Department in March of the year in which the community revitalization plan is prepared. In determining the unemployment rate within the community revitalization and investment area, an authority may use unemployment data from the periodic American Community Survey published by the United States Census Bureau.
(B) Crime rates, as documented by records maintained by the law enforcement agency that has jurisdiction in the proposed plan area for violent or property crime offenses, that are at least 5 percent higher than the statewide average crime rate for violent or property crime offenses, as defined by the most recent annual report of the Criminal Justice Statistics Center within the Department of Justice, when data is available on the Attorney General’s Internet Web site. The crime rate shall be calculated by taking the local crime incidents for violent or property crimes, or any offense within those categories, for the most recent calendar year for which the Department of Justice maintains data, divided by the total population of the proposed plan area, multiplied by 100,000. If the local crime rate for the proposed plan area exceeds the statewide average rate for either violent or property crime, or any offense within these categories, by more than 5 percent, then the condition described in this subparagraph shall be met.
(C) Deteriorated or inadequate infrastructure, including streets, sidewalks, water supply, sewer treatment or processing, and parks.
(D) Deteriorated commercial or residential structures.
(e) As an alternative to subdivision (d), an authority may also carry out a community revitalization plan within a community revitalization and investment area if it meets any of the following conditions:
(1) The area is established within a former military base that is principally characterized by deteriorated or inadequate infrastructure and structures. Notwithstanding subdivision (c), the governing board of an authority established within a former military base shall include a member of the military base closure commission as a public member.
(2) The census tracts or census block groups, as defined by the United States Census Bureau, within the area are situated within a disadvantaged community as described in Section 39711 of the Health and Safety Code.
(3) Sites identified in the inventory of land in a city or county’s housing element that are suitable for residential development pursuant to paragraph (3) or (4) of subdivision (a) of Section 65583.2, including parcels that are zoned to allow transit priority projects, as defined under Chapter 4.2 (commencing with Section 21155) of Division 13 of the Public Resources Code, consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board, pursuant to subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080, has accepted a metropolitan planning organization’s determination of the sustainable communities strategy or the alternative planning strategy.
(f) An authority created pursuant to this part shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), 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)).
(g) (1) At any time after the authority is authorized to transact business and exercise its powers, the legislative body or bodies of the local government or governments that created the authority may appropriate the amounts the legislative body or bodies deem necessary for the administrative expenses and overhead of the authority.
(2) The money appropriated may be paid to the authority as a grant to defray the expenses and overhead, or as a loan to be repaid upon the terms and conditions as the legislative body may provide. If appropriated as a loan, the property owners and residents within the plan area shall be made third-party beneficiaries of the repayment of the loan. In addition to the common understanding and usual interpretation of the term, “administrative expense” includes, but is not limited to, expenses of planning and dissemination of information.

SEC. 8.

 Section 62002 of the Government Code is amended to read:

62002.
 An authority may do all of the following:
(a) Provide funding to rehabilitate, repair, upgrade, or construct infrastructure.
(b) Provide for low- and moderate-income housing in accordance with Part 2 (commencing with Section 62100).
(c) Remedy or remove a release of hazardous substances pursuant to the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code.
(d) Provide for seismic retrofits of existing buildings in accordance with all applicable laws and regulations.
(e) Acquire and transfer real property in accordance with Part 3 (commencing with Section 62200). The authority shall retain controls and establish restrictions or covenants running with the land sold or leased for private use for the periods of time and under the conditions as are provided in the plan. The establishment of these controls is a public purpose under this part.
(f) Issue bonds in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5.
(g) (1) Borrow money, receive grants, or accept financial or other assistance or investment from the state or the federal government or any other public agency or private lending institution for any project within its area of operation, and may comply with any conditions of the loan or grant. An authority may qualify for funding as a disadvantaged community pursuant to Section 79505.5 of the Water Code or as defined by Section 56033.5. An authority may also enter into an agreement with a qualified community development entity, as defined by Section 45D(c) of the Internal Revenue Code, to coordinate investments of funds derived from the New Markets Tax Credit with those of the authority in instances where coordination offers opportunities for greater efficiency of investments to improve conditions described in subdivisions (d) and (e) within the territorial jurisdiction of the authority.
(2) Receive funds allocated to it pursuant to a resolution adopted by a city, county, or special district to transfer these funds from a source described in subdivision (d), (e), or (f) of Section 53398.75, subject to any requirements upon, or imposed by, the city, county, or special district as to the use of these funds.
(h) Adopt a community revitalization and investment plan pursuant to Sections 62003 and 62004.
(i) Make loans or grants for owners or tenants to improve, rehabilitate, or retrofit buildings or structures within the plan area.
(j) Construct foundations, platforms, and other like structural forms necessary for the provision or utilization of air rights sites for buildings to be used for residential, commercial industrial, or other uses contemplated by the revitalization plan.
(k) Provide direct assistance to businesses within the plan area in connection with new or existing facilities for industrial or manufacturing uses, or the redevelopment or conversion of underutilized office or retail structures or parcels into housing, except as specified in this division.

SEC. 9.

 Section 62003 of the Government Code is amended to read:

62003.
 An authority shall adopt a community revitalization and investment plan that may include project areas and a provision for the receipt of tax increment funds generated within the area according to Section 62005, provided the plan includes each of the following elements:
(a) A statement of the principal goals and objectives of the plan including territory to be covered by the plan.
(b) A description of the deteriorated or inadequate infrastructure within the area and a program for construction of adequate infrastructure or repair or upgrading of existing infrastructure.
(c) A housing program that describes how the authority will comply with Part 2 (commencing with Section 62100). The program shall include the following information:
(1) The amount available in the Low and Moderate Income Housing Fund and the estimated amounts that will be deposited in the fund during each of the next five years.
(2) Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years.
(3) A description of how the program will implement the requirements for expenditures of funds in the Low and Moderate Income Housing Fund over a 10-year period for various groups as required by Chapter 2 (commencing with Section 62115) of Part 2.
(4) Estimates of the number of units, if any, developed by the authority for very low, low-, and moderate-income households during the next five years.
(d) A program to remedy or remove a release of hazardous substances, if applicable.
(e) A program to provide funding for or otherwise facilitate the economic revitalization of the area.
(f) A fiscal analysis setting forth the projected receipt of revenue and projected expenses over a five-year planning horizon, including the potential issuance of bonds backed by tax increment during the term of the plan. Bonds shall be issued in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5. An authority shall not spend revenue for any purpose that is not identified as part of a program described in subdivisions (b), (c), (d), and (e).
(g) Time limits that may not exceed the following:
(1) Thirty years for establishing loans, advances and indebtedness.
(2) Either of the following:
(A) Forty-five years for the repayment of all of the authority’s debts and obligations, and fulfilling all of the authority’s housing obligations. The plan shall specify that an authority shall dissolve as a legal entity in no more than 45 years from the date upon which the issuance of debt is approved for a plan, or approved for a project area designated by the authority within a plan subject to subparagraph (B), as applicable, and no further taxes shall be allocated to the authority pursuant to Section 62005. Nothing in this paragraph shall be interpreted to prohibit an authority from refinancing outstanding debt solely to reduce interest costs.
(B) If the authority divides the community revitalization and investment plan into multiple project areas, a date on which the plan will cease to be in effect and all tax allocations to the authority will end and a date on which the repayment of indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the authority or the applicable project area has received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this subparagraph, an authority or project area shall not receive incremental tax revenues under this chapter. If the authority divides the community revitalization and investment plan into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the authority has received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.
(h) A determination that the community revitalization investment area complies with the conditions described in subdivision (d) or (e) of Section 62001.

SEC. 10.

 Section 62006 of the Government Code is amended to read:

62006.
 (a) The authority shall require the preparation of an annual independent financial audit paid for from revenues of the authority, and review the plan at least annually and make any amendments that are necessary and appropriate in accordance with the following procedures:
(1) Amendments to an approved plan, including proposals to finance affordable housing pursuant to Part 2, and additional eligible projects, may be approved by a majority vote of the authority’s governing board at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents and taxing agencies.
(2) Amendments that propose any of the following shall be adopted in accordance with all notice and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial plan set forth in Section 62004:
(i) Addition of new territory or project areas to a plan.
(ii) Increase the limit of the total number of dollars in local taxes allocated.
(iii) Approve a public facility or development that was not proposed to be financed or assisted by the district in the approved plan.
(b) An 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 authority shall cause the draft report to be posted in an easily identifiable and accessible location on the authority’s Internet Web site and shall mail a written notice of the availability of the draft report on the Internet Web site to each owner of land and each resident within the area covered by the plan and to each taxing entity that has adopted a resolution pursuant to subdivision (d) of Section 62005. The notice shall be mailed by first-class mail, but may be addressed to “occupant.”
(c) The annual report shall contain all of the following:
(1) 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.
(2) A chart comparing the actual revenues and expenses, including administrative costs, of the authority to the budgeted revenues and expenses.
(3) The amount of tax increment revenues received.
(4) The amount of revenues expended for low- and moderate-income housing.
(5) An assessment of the status regarding completion of the authority’s projects.
(6) The amount of revenues expended to assist private businesses.
(d) If the authority fails to provide the annual report required by subdivision (a), the authority shall not spend any funds received pursuant to a resolution adopted pursuant to subdivision (d) of Section 62005 until the authority has provided the report, except for funds necessary to carry out its obligation under Part 2 (commencing with Section 62100).
(e) Every 15 years, at the public hearing held pursuant to subdivision (b) and after adopting the annual report, the authority shall consider whether the property owners and residents within the plan area wish to propose amendments to the plan. The authority may consider and adopt amendments to the plan at the conclusion of the public hearing. After considering any amendments to the plan, the authority shall conduct a protest proceeding to consider whether the property owners or residents within the plan area wish to present oral or written protests against the authority undertaking new projects. Notice of this proceeding shall be included in the written notice of the hearing on the annual report and shall inform the property owner and resident of their right to submit proposed amendments to the plan, or an oral or written protest to prohibit new projects under the plan, before the close of the public hearing. The protest may state that the property owner or resident objects to the authority taking action to implement new projects under the plan on and after the date of the election described in subdivision (f). The authority shall consider all written and oral protests received prior to the close of the public hearing.
(f) Except as provided in subdivision (h), if there is a majority protest, the authority shall not take any further action to implement new projects under the plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the property owners and residents file protests, then the authority shall call an election of the property owners and residents in the area covered by the 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 property owners and residents, at least 18 years of age or older, in the area.
(g) An election required pursuant to subdivision (f) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The authority shall adopt, at a duly noticed public hearing, procedures for holding this election.
(h) If a majority of the property owners and residents vote against the plan, then the authority shall not take any further action to implement new projects under the plan on and after the date of the election held pursuant to subdivision (e). This section shall not be interpreted to prohibit an authority from doing any of the following:
(1) In fulfilling its obligations to repay all outstanding bonded indebtedness, fulfill all contractual obligations to third parties, or take all actions necessary so that the interest on any outstanding bonded indebtedness is excluded from gross income for federal income tax purposes.
(2) Expending bond proceeds and other revenues to complete any previously approved project or contractual obligation.
(3) Expending funds to complete any of the affordable housing obligations required by Part 2 (commencing with Section 62100).