HomeMy WebLinkAboutMINUTES - 03231993 - 1.39 I _39
To: BOARD OF SliPERVISORS Contra
FROM:
Phil Batchelor, County Administrator '`�► \ Costa
• z��-, ` ¢ County
y;a a.•.
March 16, 1993
DATE: a ca�vr
SUBJECT: LEGISLATION: SB 566 (Roberti)
SPECIFIC REQUEST(S)OR RECOMMENDATIONS)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Agree .to CO-SPONSOR SB 566 by Senator Roberti, which would permit
any local agency that provides public library service to establish
an assessment district and to determine and levy an annual
assessment for library services and facilities .
BACKGROUND:
The California Library Association and Los Angeles County are
sponsoring legislation introduced by Senator David Roberti to
permit local agencies to establish an assessment district and
impose an assessment to pay for library services . Senator Roberti
has introduced SB 566 for this purpose. �.
One portion of the Board's 1993 Legislative Program includes the
following:
14 . Allow County Service Area Law to be Used for Library Services
- Support the efforts of the California Library Association or
other counties to enact legislation allowing a board of
supervisors to impose a benefit assessment pursuant to the
County Service Area law for library services . Require a
majority approval by the voters if that appears to be the only
way to get such. legislation signed by the Governor.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
XAPPROVE OTHER /
SIGNATURE(S): &&_AiClh ����
ACTICN OF BOARD ON Maiceh 23_i 993 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
V I HEREBY CERTIFY THAT THIS IS A TRUE
_.4_UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS N THE DATE SHOWN.
ATTESTEDZI zu
Contact: PHIL BATCHELOR.CLERK OF THE BOARD OF
cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
Library services have sustained substantial reductions over
the past few years, particular in 1992-93 with the reductions
in the Special District Augmentation Fund (SDAF) . One
possible mechanism which has been explored is the use of the
County Service Area law to allow the imposition of a benefit
assessment against each parcel of property in the County to
assist in providing library services . Several efforts have
been made in recent years to expand the County Service Area
law to provide for additional services to be funded in this
manner. Each has been vetoed by the incumbent Governor at the
time (Governor Deukmejian and Governor Wilson) . The objection
has generally been that such an additional assessment should
have voter approval since it constitutes an additional tax.
Los Angeles County is planning to sponsor legislation in 1993
to include library services within the County Service Area
law. It is hoped that the California Library Association will
co-sponsor this legislation. Los Angeles County is seeking
the additional support of several counties which are in
particular need of funds for additional library services .
As introduced, SB 566 provides that a proposed benefit assessment
can be forced to the ballot with a 10% protest. Otherwise, its
provisions are very similar to those which provide for a benefit
assessment for fire service. SB 566 does not include a mandatory
requirement for a vote of the people. In view of the fact that
this legislation was anticipated in the Board' s 1993 Legislative
Program, it appears appropriate for the Board to indicate its
willingness to be a co-sponsor of SB 566 with the California
Library Association and the County of Los Angeles .
cc : County Administrator
County Counsel
County Librarian
George Roemer, Senior Deputy County Administrator
Les Spahnn; Heim, Noack, and Spahnn
-2-
i
1 -39
SENATE BILL No. 566
Introduced by Senator Roberti
.(Principal coauthor: Senator Thompson)
(Coauthor: Assembly Member Cortese)
March 1, 1993
An act to add Chapter 7 (commencing with Section 54800)
to Part 1 of Division 2 of Title 5 of the Government Code, and
to amend Section 98.6 of the Revenue and Taxation Code;
relating to library benefit assessments, and declaring the.
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 566, as introduced, Roberti. Library services.
assessments.
Existing law establishes procedures for the imposition of
assessments on real property to fund capital improvements,
facilities, and services benefiting the property against which
the assessment is imposed.
This. bill would permit any local agency, as defined, that
provides public library services to establish, by resolution or
ordinance, after notice and hearing, an assessment district
and to determine and levy an annual assessment for library
services and facilities pursuant to procedures prescribed by
this bill.
The bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/s. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
99 80
i
SB 566 — 2 —
The
2 —The people of the State of California do enact as follows:
I
1 SECTION 1. Chapter 7 (commencing with Section
2 54800) is added to Part 1 of Division 2 of Title 5 of the
3 Government Code, to read:
4
5 CHAPTER 7. LIBRARY SERVICES ASSESSMENTS
6
7 Article 1. General Provisions
8
9 54800. The Legislature finds and declares that it is in
10 the interest of the public that there be public libraries.,
11 that public libraries are necessary to reduce illiteracy,
12 supplement the formal system of public education and
13 provide after-school opportunities for children and
14 adolescents, provide a resource. for lifelong learning,
15 foster cultural diversity, promote economic growth and
16 improve the conduct of business, and the development of
17 research.
18 The Legislature also finds and declares that it is in the
19 public interest to allow local agencies to finance public
20 library services through the imposition of an assessment
21 upon the. property that benefits from those services.
22 The Legislature further finds and declares that
23 assessments imposed for the purpose of providing library y`
24 services benefit individual properties and are not taxes
25 for the general benefit of the governmental entity, but
26 are assessments for services that confer special benefits
27. upon the properties to which the services are provided.
28 54801. Any local agency that provides public library
29 services, including, but not limited to, county free library.
30 services, may, by ordinance or resolution adopted after
31 notice and hearing, establish an assessment district and
32 determine and levy an annual assessment for library
33 services and facilities pursuant to this chapter. The local
34 agency may provide these services directly or by contract
35 with the state or a local agency or by a contract provider.
36 The assessment may be made for the purpose of
37 acquiring, constructing, furnishing, equipping,
38 operating, and maintaining the real property, buildings,
99 110
- 3 - SB 566
1 equipment, vehicles, and other facilities necessary in the
tion 2 provision of library services; for the purpose of providing
the 3 collection development and maintenance, lending
4 ,services, information services and programs, and
4 5 administration necessary in the provision of library
6 services; for the purpose of paying the principal and
7 interest on indebtedness incurred pursuant to this
8 chapter; and for the purpose of paying the costs of
9 providing library services, including, but not limited to,
10 amounts payable pursuant to a contract with an entity
s in 11 actually providing the services, and the salaries and
ies, 12 benefits of library personnel.
icy' 13 The assessment district may include, and the
ind 14 assessment may be levied against, any parcel,
end 15 improvement, or use of property to which library
ng' 16 services may be made available, whether or not those
tnd 17 services are actually used.
t of 18 54802. As used in this chapter:
,� 19 . (a) "Bonds" means bonds, notes, or other evidences of
:he 20indebtedness.
)lie 21 (b) "Legislative body" means the board of directors,
22 trustees, governors, .supervisors, city council, or other
23 governing body of a local agency.
iat 24 (c) "Local agency" means any county, city, or city and
try 25 county, whether general law or chartered, special.
yes 26 district, or joint powers authority composed of any of
gut 27those entities. "Special district" includes a library district
its 28 organized pursuant to Chapter 3 (commencing with
-d' 29 Section 18300), Chapter 8 (commencing with Section
try 30 19400) or Chapter 9 (commencing with Section 19600) of
`ry 31 Part 11 of the Education Code and a county service area
.'er. 32 created pursuant to the County Service Area Law,
Rd y 33 Chapter 2.2 (commencing with Section 25210.1) of Part
ry 34 2 of Division 2 of Title 3.
;al 35 (d) "Library services" means all services and facilities
ct 36 provided by a local agency in connection with a public
o 37 library, including a county free library established
38 pursuant to Chapter 6 (commencing with Section 19100)
`g9'1 39 of Part 11 of the Education Code. These services include,
's' sr 40 but are not limited to, acquisition, construction,
X10
99 130
SB 566 — 4 -
1
4 -1 equipping, furnishing, staffing, operating, and
2 maintaining library facilities for the conduct of public
3 library programs; acquisition of books, magazines,
4 newspapers, audiovisual, electronic media, and other
5 informational material; provision of access to all
6 available lending materials through direct loan, .
7 interlibrary loan, literacy programs, electronic access,
8 and other special service programs; provision of
9 information, recreation, and lifelong learning of all
10 persons; and administrative and indirect costs of
11 providing those services.
12 (e) "Revenues" means (1) the proceeds of any
13 assessment levied pursuant to this chapter, and (2) the
14 fees, charges, and other revenues of the local agency
15 derived from library services or facilities.
16 54803. (a) The ordinance or resolution to form the
17 assessment district and to determine and levy the initial
18 annual assessment shall establish a method for
19 apportioning the annual assessment among the
20 properties within the assessment district on the basis of
21 the benefit derived from individual parcels or classes of
22 property.
23 (b) beterminations of benefit may be based on the use
24 of the property, class of improvement of property,
25 structure size or property size, distance from library
26 services and facilities, and other factors relative to
27 making library services available to the property.
28 (c) The ordinance or resolution shall also do all of the
29 following:
30 (1) Establish the boundaries and designation of the
31 assessment district and any zones or areas of benefit
32 within the assessment district.
33 (2) Describe each lot or parcel of property proposed I
34 to be subject to the assessment.
35 (3) Establish the amount of the assessment for each lot
36 or parcel for the initial fiscal year.
37 (4) Establish the maximum aggregate amount of the I
38 annual assessment and the method of providing an
39 automatic adjustment, if any, to the assessment or to the ~:.
40 maximum assessment. '
99 140
- 5 — SB 566
and - 1 5 Establish the maximum duration of the
Lblic 2 assessment, or state that the assessment may be levied
nes, 3 until terminated by the legislative body.
":her 4 (6) If desired, declare the intention of the local agency
all 5 to issue bonds pursuant to this chapter.
)an, , 6 (7) Set forth a general, functional description of any
,ess 7 capital .facilities proposed to be financed with the
of 8 assessments.
all 9 (d) Proceeds of the assessment may be expended by
of 10 the local agency to pay any cost or expense of the local
11 agency arising under or related to the subject matter of
my 12 this chapter, including without limitation administrative
the 13 costs of establishing the assessment district, levying and
icy 14 collecting the assessment, and the defense of any action
15 taken by the legislative body under this chapter.
.he 16 54804. (a) The legislative body may establish zones
ial 17 or areas of benefit within the assessment district and may
for 18 restrict the imposition of assessments to areas lying
-he 19 . within one or more of the zones or areas of benefit so
of G 20 established. The assessment apportionment method
of 21 described in Section 54803 may establish a separate
22 apportionment method for any area lying within the
tse 23 boundaries of.a zone or area of benefit.
ty, 24 (b) The assessment shall be levied on a parcel, class of
ry 25 improvement to property, or use of.property basis, or a
to 26 combination thereof, within the boundaries of the
27 assessment district, zone, or area of benefit.
1e 28 54805. All or any portion of the area within which the
29 local agency provides or makes available library services
ie . 30 may be included within the assessment district, and the
J.t 31 property within the assessment district need not be
32 contiguous. The assessment district may not include any
,d f � 33 area that is not within the local agency's library service
34 area. Subject to the foregoing limitations, a local agency
A 35 may form an assessment district that includes area within
36 the territorial jurisdiction of any city without the consent
.e 37 of the governing body of the city.
n 38. 54806. Notwithstanding any provision of Part . 1
e s �3f f- ; 39 (commencing with Section.56000) of Division 3, a local
40 agency formation commission shall have no power or
i
4 I 99 160
SR 566 — 6 -
1 duty to review and approve or disapprove creation of an
2. assessment district under this chapter.
3 54807. Any action taken by a local agency hereunder
4 with respect to formation of an assessment district or the
5 issuance of bonds shall not be subject to compliance with
6 the California Environmental Quality Act, Division 13
7 (commencing commwith Section 21000) of the Public t
8 Resources Code.
9 54809. This chapter .provides an alternative authority
10 and procedure for the subject to which it relates but does
11 not affect any other law relating to the same or a similar
12 subject. When proceeding under this chapter, its
13 provisions only need be followed.
14 This chapter does not limit or prohibit the levy or
15 collection of any other fee, charge, assessment, or tax for
16 library services or facilities authorized by any other
17 provision of law.
18 This chapter and all of its provisions shall be liberally
19 construed in order to effectuate its purposes. No error,
20 irregularity, or informality, and no neglect or omission of
21 any officer, in any procedure taken under this chapter,
22 that does not directly affect the jurisdiction of the
23 legislative body to establish the assessment district or to
24 determine or levy the assessment, shall void or invalidate .
25 that proceeding or any levy for the costs of.providing
26 library services.
27 If any provision of this chapter or the application
28 thereof to any person is held invalid, that invalidity shall
29 not affect other provisions or applications of the chapter
30 that can be given effect without the invalid provision or
31 application, and to this end the provisions of this chapter
32 are severable.
33
34 Article 2. Proceedings for Imposition of Assessment
.35
36 54810. (a) The clerk or secretary of the local agency
37 shall cause notice of the time, date, and place of hearing
38 on the ordinance or resolution to be published pursuant
39. to Section 6066 and to be posted in at least three public
40 places within the local agency. I
99 180
- 7 — SB 566
1 (b) The clerk or secretary shall also cause a copy of the
an ( 2 notice of the time, date, and place of hearing on the
3 ordinance or resolution to be mailed to each property
ter 4 owner whose property would be subject to the
the 5 assessment. The notice shall be mailed at least 45 days
rith 6 prior to the date set for hearing pursuant to Section
137 54954.6 b name to those persons whose name and
clic CO y
8 address appear on the last equalized county assessment
9 roll or as known to the clerk or secretary. The envelope
tY 10 or cover of the mailing shall include the name of the local
oes 11 agency and the return .address of the sender.
filar 12 54811. At any time not later than the hour set for the
its 13 hearing, any holder, whether a fee owner, lessee or
14 otherwise, of the interest in any property that is proposed
or 15 to be assessed and who will be obligated to pay the
for 16 proposed assessment, may make written protest against
:ier 17 the proposed assessment. The protest shall be in writing,
18 shall contain a description of the property and the
dly 19 interest in the property that each signer of the protest
.or
TT 20 represents, sufficient to identify the.property, and, if the
I of 01.19 21 signers are not shown on the last equalized assessment
:er, 22 roll as the owners of the property, shall contain or be
the 23 accompanied by written evidence that the signers are the
to 24 holders of the property interest proposed to be charged
ate
25 and who will be obligated to pay the proposed charge. All
ing + 26 protests shall be delivered to the clerk or secretary of the
27 local agency and for the purposes of Section 54814 no
ion 28 other protests or objections shall be considered.
iall 29 54812. (a) At the time, date, and place stated in the
ter 30 notice given under Section 54810 the legislative body
or 31 shall hear and consider all objections or-protests,'if any,
ter 32 to the ordinance or resolution referred to in the notice
33 and shall also hear.and determine all protests as provided
34 in Section 54814. The legislative body may continue the
it 35 hearing from time to time.
36 (b) Any written protest may be withdrawn, in writing,
icy 37 by the person who made the protest at any time prior to
ing I 38 the conclusion of the hearing or any adjournment of the
Mt 39 hearing.
)lic , I 40 54813. . During the course of or upon the conclusion of
99 190
180
i
SB 566 — 8 -
1
8 -1 the hearing, the legislative body may order changes in
2 the resolution or ordinance, which changes do not
3 increase any assessment, except that the legislative body
4 may order the inclusion of additional territory within the
5 assessment district upon the written request of a
6 property owner or upon the giving of mailed notice of
7 hearing to owners of property proposed to be added to
8 the assessment district.
9 54814.. (a) Upon the conclusion of the hearing
10 pursuant to Section 54812, the legislative body shall
11 determine the percent of protests . made. For that
12 purpose, the territory of the assessment district shall be
13 adjusted to exclude territory ordered excluded from the
14 district and to include territory ordered added to the
. 15 district.
16 (b) If it shall be necessary, in order to findwhether a
17 10 percent or 50 percent .protest exists, to determine
18 whether any or all of the signers of written protests are
19 the holders of property interests proposed to be assessed
20 and who `will be obligated to pay the proposed annual
21 assessment, the legislative body shall make the
22 determination from the latest equalized assessment roll,
23 any written evidence submitted with a written protest,
24 and any other evidence received at the hearing. The
25 legislative body shall be under no duty to obtain or
26 consider any other evidence as to the holding of property
27 interests, and its determination of valid protests shall be
28 final and conclusive.
29 54815.. If the legislative body of a local agency finds
30 that protest is made by holders of property interest
31 proposed to be assessed and who will be obligated to pay
32 more than 10 percent but less than 50 percent of the total
33 amount of the proposed annual assessment, and protests
34 are not withdrawn so as to reduce the same to less than
35 10 percent, the proposed assessment so protested shall
36 either be submitted to approval by a majority of the
37 voters of the local agency, zone, or area of benefit voting
38 on the proposition or abandoned, except that any
39 proposed annual assessment to pay principal and interest
40 coming due on bonds-issued pursuant to this chapter may COX
i
99 210
- 9 — SB 566
es in \� 11� 1 be adopted by a majority of the members of the
not 2 legislative body who are then present and voting.
body 3 If the value of the protests equals 50 percent or more
z the 4 of the total amount of the proposed assessment, and
f a 5 protests are not withdrawn so as to reduce the same to
o
o a 6 less than 50 percent, the proposed assessment so
2e o ;(7 protested shall be abandoned.
8 54816. (a) If no protests or objections in writing have
ging 9 been delivered to the clerk or secretary up to the hour set
shall 10 for hearing on the ordinance or resolution, or if valid
that 11 protests have been found by the legislative body to be less
11 be 12 than 10 percent of the total proposed annual assessment,
i the 13 the legislative body may, at any time after conclusion of
the 14 the hearing, by ordinance or resolution, establish the
15 assessment district and adopt or reduce each or any
ier a 16 assessment.
nine 17 (b) If the proposal has been approved by a majority of
; are 18 the voters of the local agency, zone, or area of benefit, the
!ssed 19 legislative body may, at any time after the canvass� of
nual � 20 returns, by ordinance or resolution establish the
the '� 21 assessment district. and adopt or reduce each or any.
the 22 assessment.
roll, 23 (c) The legislative body shall make a determination
test, 24 upon each assessment. The adoption of the ordinance or
The 25 resolution shall constitute the levy of the initial annual
1 or
erty 26 assessment.
U be 27 (d) The legislative body may. annually thereafter
28 determine .the cost. of the services that are financed by
finds 29 the assessment and, by ordinance or resolution, after
rest 30 notice and hearing as provided in. Sections .54819 and
31 54820, determine and impose the assessment.
pay 32 54817. The local agency shall pay the county for costs,
total 33 if any, incurred by the county in conducting the election.
'han ' 34 An election called by a legislative body pursuant to this
;hall 35 chapter is subject to all provisions of the Elections Code
the 36 applicable to elections called by the local agency.
ting 37 54818. After adoption, any ordinance or resolution
any 38 adopted pursuant to this section may be amended by the
rest 39 legislative body following notice and a hearing.
40 Notwithstanding the provisions of subdivision (c) of
nay
210 I 99 230
i
I
SB 566 — 10 —
I Section 54954.6, if the amendment shall not increase any
2 assessment, notice of the hearing thereon shall be given
3 as provided in subdivision (a) of Section 54810. For any
4 amendment that shall increase any or all assessments,
5 notice shall also be given as provided in subdivision (b)
6 of Section 54810. �-
7 54819. (a) Prior to the levy of any annual assessment
8 by the legislative body as provided in this chapter, other
9 than the initial annual assessment, the legislative body of
10 the local agency shall cause to be prepared and filed with
11 the clerk or secretary of the.local agency a written report
.12 that shall contain all of the following:
13 (1) Reference to the assessment district by its
14 distinctive designation. and general location.
15 (2) The aggregate amount of the assessment for the
16 fiscal year, which shall not be less than the amount of
17 principal and interest required to be paid from the
18 assessment with respect to bonds issued pursuant to this
19 chapter.
.20 (3) A schedule showing the apportionment of the 00K�
21 aggregate assessment among the properties within the
22 assessment district.
23 (4) A general description of the proposed uses of the
24 assessment.
25 54820. (a) Notwithstanding e provisions rovisions of
26 subdivision (c) of Section 54954.6, notice of hearing on
27 the proposed annual assessment shall be given by j
28 publication and posting in the manner provided in
29 subdivision (a) of Section 54810._
30,-. (b) If the annual report proposes an increase in. the
31 levy of an annual 'assessment, which increased levy is
32 greater than the established maximum aggregate
33 amount, notice of the hearing on the annual report shall ]
34 also be given by mailing in the manner providedin
35 subdivision (b) of Section 54810.
36 . 54821. The legislative body may provide for the
37 collection of the assessment in the same manner, and
38 subject to the same penalties as, other fees, charges, .and
39 taxes fixed and collected by or on behalf of . the local
> �� ,,, is •6
40 agency. If the assessments are collected by the county,
99 240
- 11 — SB 566
1 the county may deduct its costs incurred for that service
any 2 before remittal of the balance to the local agency's
riven 3 treasury.
• any 4 54822. Following adoption of the ordinance or
ents, 5 resolution, the clerk or secretary of the local agency shall
i (b) 6 record a notice and map describing the assessment
rA 7 district . pursuant to Division 4.5 (commencing with
nent 8 Section 3100) of the Streets and Highways Code.
)ther 9 54823. The failure of any person to receive a notice,
3y of 10 resolution, order, or any other matter shall not affect in
with 11 any way whatsoever the validity of any proceedings
port 12 taken under this chapter or prevent the legislative body
13 from proceeding with any hearing so noticed.
its 14 54824. (a) Chapter 9 (commencing with Section 860)
15 of Title 10 of Part 2 of the Code of Civil Procedure applies
the 16 to any judicial action or proceeding brought by the
it of .17 legislative body to determine the validity of any
the 18 ordinance or resolution adopted under this chapter, or
this 19 modifying or amending an existing ordinance or
20 resolution.
the 21 (b) Except as provided in subdivision (a), the validity
the 22 of the formation of an assessment district, or an
23 assessment levied, under this chapter shall not be
the 24 contested, questioned, or challenged in any action or
25 proceeding unless the action or proceeding is
of 26 commenced within 30 days after the district is formed or
9 on . 27 the assessment is levied, as the case may be, and in case
by 28 that . action or proceeding is not brought within that
i in 29 period, then thereafter all persons whatsoever shall be
30 barred in any action, suit, or proceeding from pleading,
the 31 asserting, or claiming that. the assessment is invalid or
ry is 32 that any of the proceedings or other actions herein
gate 33 specified, were defective, faulty., or invalid in any respect.
ihall ( t� 34 (c) If an ordinance or resolution provides for an
3 in i
35 automatic adjustment in an assessment, and the
36 automatic adjustment results in an increase in the
the 37 amount of an assessment, any action or proceeding to
and .38 attack, review, set aside, void, or annul the increase shall
and 39 . be commenced within 30 days after the effective date of
.ocal .40 the increase.
;nty, ON—
99 260
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SB 566 — 12 -
1
12 -1 54825. The legislative body may specifically allocate
2 and pledge all or any portion of the revenues generated
3 pursuant to this chapter to pay the principal of and
4 . interest on bonds issued under this chapter.
5
6 Article .3. Issuance of Bonds
8 54826. (a) Limited obligation bonds may be issued to
9 finance the costs of any library facilities authorized under
10 this chapter or any other provision of law. These costs
11 may include all actual or estimated costs incidental to or
12 connected with the acquisition,. construction,
13 improvement, or financing of the facilities, including
14 furnishings with a useful life of 10 years or more, and all
15 engineering, inspection, legal, and fiscal agent's fees, all
16 costs of issuance of the bonds, all bond reserve funds, and
17 all bond interest estimated to accrue during the
18 construction period and for a period determined by the
19 legislative body after completion of construction. Bonds
20 may also be issued to refund outstanding bonds.
21 (b) Proceedings to issue bonds under this article are
22 initiated when the legislative body adopts a resolution by
23 a majority vote of all of its members, which initiating
24 . resolution shall state: (1) that it is adopted pursuant to
25 this. article, (2) the object and purpose of issuing the (�
26 bonds, (3) the estimated cost of the facilities to be
27 financed, (4) the maximum amount of bonds, (5) the
28 maximum rate of interest on the bonds, and. (6) that the
. 29 bonds shall be secured by and payable from all or part of
30 the revenues.
31 (c) All bonds issued pursuant to this .article shall be
32 limited obligations of the local agency, payable only from
.33 the revenues specified in the resolution initiating
34 issuance proceedings; provided, that if the funds are
35 insufficient for the payment of principal and interest, the
36 local agency may, at its discretion, make payments from
37 any other funds or revenues that may legally be applied
38 to their payment. By resolution, the legislative body may
39 pledge, place a charge upon, and assign all or any part of
40 the revenues for the. security of the bonds. All revenues t
99 2W
- 13 — SB 566
nate 1 that have been pledged to the payment of the bonds and
ated 2 interest earned thereon constitute a trust fund for the
and 3 security and payment of the interest on and principal of
4 the bonds.
5 (d) The bonds shall bear interest at a rate or rates not
6 exceeding the maximum rate authorized by Section
r 7 53531, may be payable at the time or times, may be issued
8 in one or more series, may bear a date or dates, may
,d to
.der 9 mature at a time or times not exceeding 31 years from
�osts 10 their respective dates, may be payable in the medium of
:o or 11 payment at a place or places, may carry the registration
:ion 12 privileges,may be subject to the terms of redemption and
lin ' 13 the premiums, may be executed and sold in the manner,
3 all 14 may contain those terms, covenants, and conditions, and
;; all 15 may be in the form as the resolution authorizing issuance
and 16 may provide. The bonds may be sold at public or private
the 17 sale in the manner and upon the terms as may be
the 18 provided in the resolution authorizing issuance.
Inds 19 (e) Bonds of the same issue shall be equally and
20 ratably secured by the pledge, lien, and charge on the
are 21 revenues specified in . the resolution authorizing the
i by 22 issuance of the bonds, without priority for date, number,
-fig 23 or time of sale, execution, or delivery; except that any
. to 24 local agency may authorize the issuance of bonds of
the ( �► 25 different series and may provide that the bonds in any
26 series shall to the extent and in the manner prescribed
be �
the 27 in the resolution authorizing issuance, be subordinated
the 28 and be junior in standing, with respect to the payment of
t of 29 principal and interest and the security thereof, to those
30 other bonds as may be specified in the resolution.
be 31 54827. The general fund of a local agency is not liable
om 32 for the payment of any bonds issued pursuant to this
ing 33 article or the interest thereon. The general credit or
are 34 taxing power of the local agency, other than the pledged
the 35 revenues, is not liable for the payment of any bonds
om 36 issued pursuant to this article. or the interest thereon. The
ied 37 owner of bonds issued under this article shall not compel
my 38 the exercise of taxing power by the local agency, or the
t of 39 forfeiture of its property, other than the pledged
ues ;E: ' ; 40 revenues. The principal of, and interest on, the bonds and
t
280 99 290
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SB 566 — 14 -
1 any premiums payable upon the redemption of any
2 bonds thereof, are not a debt of the local agency within
3 the meaning of any constitutional or statutory debt
4 limitation or restriction, nor a legal or equitable pledge,
5 charge, lien, or encumbrance upon any of its property, or
6 upon any of its income, receipts, or revenues except the
7 revenues that have been pledged to their payment. A�: T
8 Every bond shall recite in substance that the principal of
9 and interest on the bond are payable solely from the
10 pledged revenues and that the local agency is not
11 obligated to pay the principal and interest except from
12 the pledged revenues.
13' 54828. The bonds and any interest on or income from
14 the bonds are exempt from taxation in this state, except
15 from bank and corporation franchise, gift, inheritance,
16 and estate taxes.
17 54829. (a) In the resolution authorizing issuance of
18 the bonds, the legislative body may insert any of the
19 provisions authorized by this article, which shall become
20 a part of the contract with the bond owners.
21 (b) The legislative body may provide for all of the
22 following:
23 (1) Limitations on,the.purpose to which the proceeds
24 of sale of any issue.of bonds may be applied.
25 (2) Limitations on the issuance of additional bonds for Qt,
26 the same purpose and.on the lien of additional bonds.
27 (3) Events of default and terms upon which the bonds
28 may be declared due before maturity and the terms upon
29 which the declaration and its consequences may be
30 waived.
31 (4) The . rights, liabilities, powers, and duties arising
.32 upon the local agency's breach of any covenants,
33 conditions, or obligations.
34 (5) The vesting. in a trustee of the right to enforce
35 covenants to secure payment of, or in relation to, the
36 bonds and the trustee's powers and duties, and the
37 limitation of the trustee's liabilities.
38 (6) The. terms upon which the. bond owners or any
39 percentage of them may enforce covenants or duties of
. 40 the local agency with respect to the bonds.
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any 1 (7) A procedure for amending or abrogating the terms
debt 2 of the resolution with the consent of the owners of a
debt 3 specified number of the bonds. The procedure may also
edge, 4 provide for meetings of bond owners or for their written
ty, or 5 assent without a meeting and the manner of consenting,
t the 6 with or without 'a meeting.
sent. CO.
7 g An other acts and thins necessar convenient,
gal of > ( ) Y g Y�
the 8 or desirable to secure the bonds or tending to make them
not 9 more marketable.
from 10 (c) The resolution shall specifically state the effect of
11 amendment upon the rights of the owners of all of the
From 12 bonds and shall be binding upon the owners of all of the
:sept 13 ' bonds issued pursuant to the resolution.
14 54830. (a) A separate, distinct, and special fund shall
ince, 15 be created at or before.the issuance of the bonds, that
'e of 16 shall be maintained continuously during the time that .
the 17 any of the bonds or the interest thereon are outstanding
18 and unpaid. The pledged revenues shall be deposited in
!ome 19 the special fund to the extent necessary to pay the
the 0 �. jI 20 principal of the bonds and the interest thereon. All
(I 21led ed revenues deposited in the s ecia
p g p P J fund shall be
eeds 22 held in trust for the benefit of the owners of the bonds
23 and shall be applied in accordance with the resolution
24 authorizing issuance of the bonds. Pending the
:s for (p 25 application the pledge revenues may be invested in
ids. 26 property or securities in which the local agency may
onds 27 legally invest funds subject to its control.
ipon 28 (b) The local agency shall keep proper books of record
r be 29 and accounts of the revenues, separate from all other
,
30 records and accounts, in which complete and correct
ants31 entries shall be made of all transactions relating to the
arts, 32 revenues. At all reasonable times, and upon reasonable
f , 33 notice to the local agency, the books .shall be subject to
orce 1�,Z`` 34 inspection by the owners of not less than 10 percent of the
the 35 outstanding bonds or their representatives duly
the 36 authorized in writing.
37 (c) Any duty of the local agency with respect to the
any 38 bonds may be exercised by agents appointed by the local
Us of 39 agency or upon terms as the local agency may provide.
j 40 The duties set forth in this article shall not require the
9 310
99 330
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SB 566 _ 16 -
1 local agency to expend any funds other than the
2 revenues.
3 (d) All bonds issued under this article shall by their
4 issuance be conclusive evidence of .the regularity,
5 validity, and legal sufficiency of all proceedings, acts, and
6 determinations in any.manner pertaining thereof, had ory
7 made hereunder. Any action, suit, or proceeding of any { �'
8 kind or nature in which the validity of any of the
9 proceedings or actions taken by the legislative body with
10 respect to the bonds is questioned or attacked, shall be
11 filed within 30 days after the date of adoption of the
12 resolution authorizing issuance of the bonds, and in case .
13 an action is not brought raising. that issue within that 1
14 period, then thereafter all persons.whatsoever shall be 1
15 barred in any action, suit, or proceeding from pleading, 1
16 asserting, or claiming that any of the proceedings or other 1
17 actions herein specified, were defective, faulty, or invalid 1
18 in any respect. 1
19 SEC. 2. Section 98.6 of the Revenue and Taxation 1
20 Code is amended to read: 2
21 98.6. (a) Notwithstanding any other provision of this
22 chapter except Sections 98.65, 98.66, and 98.67, the 2
23 amount allocated pursuant to Sections 96 or. 97, and 98, to 2
24 a special district, as defined in Article 1 (commencing r• rr 2
25 with Section 2201) of Chapter g ter 3 of Part 4, excluding €' -# L` 2
26 multicounty districts and any special district, including a 2
27 county service area, formed after January 1, 1992, and the 2'
28 amount allocated pursuant to Section 75.70 to a special 2'
29 district which is governed by the board of supervisors of 2!
30 a county or. whose governing body is the same as the 31
31 board of supervisors of a county, shall be reduced by an 3.
32 amount computed as follows: 3:
33 (1) A ratio shall be computed for each of the special (11 3,
34 districts equal to the amount of state assistance payment `
35 for the special district for the 4Q78 X91978-79 fiscal year 3(
36 divided by the sum of the state assistance payment for the T
37 special district plus the amount of property tax revenue 3'
38 allocated to the special district for the 1978--79 fiscal year 3l
39 pursuant to Section 26912 of the Government Code. 3(
40 2 The amount b which the allocation is reduced 4(
I
99 340
- 17 — SB 566
the C" 1 pursuant to Sections 75.70, 96 or 97, and 98, shall be equal
2 to the. allocation multiplied by the factor computed for
Heir 3 the district pursuant to paragraph (1) .
ity, 4 (3) For the 1984-85 fiscal year and each fiscal year
and 5 thereafter, the amount computed for each special district
I orr 6 pursuant to this subdivision, other than a special.district
any l 7 governed. by a county board of supervisors or whose
the 8 governing board is the same as the county board of
ith 9 supervisors, shall not be greater than the amount
be 10 computed for the 1983-84 fiscal year.
the 11 (4) Notwithstanding paragraph (3), for the 1988-89
ase 12 fiscal year and each fiscal year thereafter, the amount
hat 13 computed for each special district, which, on or after July
be 14 1, 1988, ceases to be governed by the county board of
age 15 supervisors or whose governing body ceases to be the
ler 16 same as the county board of supervisors, shall not be
,.lid 17 greater than the average annual amount computed for
18 the last three full fiscal years in which the special district
ion 19 was governed by the county board of supervisors or its
20 governing body was the same as the county board of
his l 21 supervisors.
:he 22 . (5) The total of all amounts computed for special
, to 23 districts within each county shall be deposited in the
ng E 24 Special District Augmentation Fund which shall specify
ng ii�; 25 amounts for each governing body as defined in Section
g a 26 .16271 of the Government Code and which shall be
:he 27 allocated pursuant to subdivision (b) .
,ial 28 (6) Notwithstanding any other provision of law, for
of 29 purposes of this section, an existing mosquito abatement
:he 30 district, as provided for in Chapter 5 (commencing with
an 31 Section 2108) of Division 3 of the Health and Safety Code,
32 located in Monterey County that, on or after January 1,
!ial �: #: 33 1988, annexes property in a county adjoining Monterey
,-nt 34 County and which prior to the date of annexation is not
,,ar 35 a multicounty district, shall not be deemed a multicounty
he 36 district.
.ue 37 . (b) (1) There is hereby created a Special . District
-ar 38 Augmentation Fund in each county to augment the
.39 revenues of special districts. On or before September 11,
ed 40 1992, and on or before,June 1 of each year thereafter, the
i
340 99 360
3
SB 566 — 18 —
1 governing body shall notify each special district of the S�
2 estimated amount of funds in. the Special District
3 Augmentation Fund available to special districts in the
4 coming fiscal year. The. auditor shall, on or before
5 September 11, 1992, and on or before August 31 of each
6 year thereafter, notify each governing body, as defined in
7 Section 16271 of the Government Code, of the amount
8 allocated to it pursuant to this section.
9 (2) (A) On or before October 9, 1992, and on or
. 10 before August 30 of each year thereafter, an independent
11 special district selection committee may meet and adopt
12 a resolution recommending a particular distribution of
13 the Special. District Augmentation Fund for that fiscal
14 year. For purposes of this paragraph, representatives of a
15 majority of all the independent special districts in the
16 county shall constitute a quorum for the transaction of
17 business by an independent special district selection
18 committee. Any resolution adopted pursuant to this
19 paragraph shall be adopted pursuant to the recorded vote s
20 of the majority of the total membership of thecommittee. I t
21 Am independent special district selection committee may
22 adopt any other appropriate rules or procedures with
23 respect to its action and proceedings pursuant to this
24 paragraph. ,
25B For purposes of this section, an "independent
( ) p ur p P
26 special district" means a. special district that is not
27 governed by the board of supervisors or a city council. ,
28 For purposes of this section, an "independent special
29 district selection committee" means a committee that
30 consists of the presiding officer of the legislative body of
31 each independent special district.
32 (c) Within 15 days of receiving a resolution from an �I
33 independent special district selection committee :s
4 recommending lar distribution of the Special
3 g a particular p I
35 District Augmentation Fund, or by October 23, 1992, or
36 by September 15 of each year thereafter if no resolution I
37 is received by October 9, 1992, or by August 30 of each j
38 year thereafter, the governing body shall hold a public
39 hearing for the purpose of determining the distribution
40 of the funds. The governing body shall send written
99 380
._ 19 — SB 566
1 notice to the legislative body of each independent special
f the 2 district. The notice shall include all of the following:
strict 3 (1) The amount of funds disbursed to each special
1 the 4 district and the .amount of funds disbursed pursuant to
--fore 5 subdivision 0) in the past fiscal year.
each 6 (2) The amount of funds computed pursuant to
ed in , 7 subdivision (a) .
ount % I 8 (3) The amount of funds proposed to be allocated
9 pursuant to subdivision 0) .
n or 10 (4) The time, date, and place of the hearing.
dent 11 The governing body shall also publish the notice in a
dopt 12 newspaper of general circulation in the county not less
►n of 13 than three days prior to the hearing. The published
fiscal 14 notice shall include the time, date, and place of the
of a 15 hearing.
the 16 At the public hearing, the governing body shall
+n. of 17 consider any resolution submitted by an independent
!tion 18 special district selection committee, and any other
this 19 written or oral testimony.
vote 20 (d) Within 30 days of the hearing, the governing body
ttee. !j I .� 21 shall allocate the funds to special districts, and may
may 22 allocate funds pursuant to subdivision 0) . The governing
with 23 body shall disburse the entire amount of the fund to
this 24 special districts during the fiscal year, except for the
i , 1 25 amounts allocated pursuant to subdivision 0) .
lent =� 26 (e) In determining the amount of funds to be
not 27 disbursed to each special district, the governing body
ncil. 28 shall not consider any revenues raised by a special district
�cial I 29 pursuant to Article 3.6 (commencing with Section 50078)
that J 30 of Chapter 1 of Part 1 of Division 1, et Article 16
'.y of 31 (commencing with Section 53970) of Chapter 4 of Part 1
32 of Division 2, or Chapter T (commencing with Section
i an 33 54800) ofPart I ofDivision 2 of Title 5 of the Government
ttee 34 Code.
�cial "�' "� 35 (� In determining the amount t of funds to be allocated
or 36 to each special district, the governing body may consider
tion 37 the revenues which are raised, or could be raised, by a
each 38 special district from its enterprise activities.
blic 39 (g) In determining the amount of funds to be
tion 40 allocated to each special district, the governing body shall
.ten
99 390
380
SB 566 — 20 -
1
20 -
1 not allocate funds to any special district which is
2 governed by the board of supervisors or the city council j
3 if the governing body intends that those funds are to be
4 transferred to that county or city upon or after
5 disbursement to the special district, except as
6 reimbursement to the city or county for services '.
7 rendered to the special district. :r i
8 (h) Within 30 days after determining the amount of
9 funds to be allocated, the governing body shall send
10 written notice to the legislative body of each
11 independent special district which shall include:
12 (1) The total amount of funds computed pursuant to
13 subdivision (a) .
14 (2) The amount of funds allocated to each special
15 district. i
16 (3) The amount of funds allocated pursuant to
17 subdivision
18 (i) In determining the amount of funds to be
19 disbursed to a special district, the governing body may
20 restrict the use of the funds requested by a special district 1
21 for purposes of capital purchases to those purposes. '1 l
22 (j) The funds allocated pursuant to this section shall be
23 used exclusively for special districts and shall not be used
24 for any general county or municipal. expenses, except ,.
25 that:
26 (1) The governing body may allocate to its general
27 fund an amount not to exceed the actual demonstrated
28 cost of administering the Special District Augmentation
29 Fund, which shall be an amount necessary to reimburse
30 the actual demonstrated expenditures made to carry out
31 the requirements of subdivisions (a) to (i), inclusive, and
32 also the actual demonstrated cost of. providing the
33 assistance requested by special districts, which amount
34 shall not exceed 1 percent of the amount in the fund. �.
35 (2) The governing body may allocate to a special
36 account in its general fund an amount not to exceed 1
37 percent of the amount of the Special District
38 Augmentation Fund to pay only the costs of the
39 following:
40 (A) Expenses incurred by special districts in the event
99 410
a — 21 — SB 566
'h is j : 1 of an emergency. As used in this subparagraph,
` '
uncil 1 2 emergency„ means a sudden, unexpected occurrence
:o be 3 which threatens the public peace, health, safety, or
after 4 welfare and which is, or is likely to be, beyond the control
as 5 of the services, personnel, equipment, or facilities of the
vices ' 6 special district.
s:.
7 (B) To carry out the purposes of the California Special
at of �4 8 District Consolidation Assistance Program established
send 9 pursuant to Chapter 9.5 (commencing with Section
each 10 60350) of Division 2 of Title 6 of the Government Code.
11 (C) To establish a Special District Augmentation Fund
it to # 12 Loan program. The program funds may be loaned to
13 special districts under those terms and conditions and in
--cial 14 those amounts as are specified by the governing body.
15 (3) Notwithstanding the limits of paragraph (2), the
t to i 16 governing body of a county with a population of less than
17 50,000, as determined by the Department of Finance,
be . 18 may allocate an amount not to exceed 2 percent of the
may 19 fund. Those governing bodies may accumulate in the
trict 20 special account an amount not to exceed 5 percent of the .
21 fund over a period of three fiscal years.
11 be 22 (4) The governing body shall disburse to special
used 23 districts any. amount allocated pursuant to this
,ept 1 24 subdivision which is greater than the limits set by
z 25 paragraphs (2) and (3) in the succeeding fiscal year.
26 5 Notwithstanding the limits of paragraph 2 the
.eral ( ) g p g p ( )
ted 27 governing body of Monterey County or Santa Cruz
tion 28 County may accrue annually to a special account in its
arse 29 general fund an amount not to exceed 1 percent of the
out 30 amount of the Special District Augmentation Fund to pay
and 31 only for the costs specified in paragraph (2) . However,
the ' 32 the total amount that may be accrued pursuant to this
)unt 33 paragraph shall not exceed 4 percent of the amount of the
! 34 Special District Augmentation Fund. Any interest which
cial ! 35 accrues to this special account shall be considered part of
,,d 1 36 this account and shall not be allocated or distributed in
:rict 37 any way to the general fund of the governing body.
the 38 (k) The county auditor shall disburse funds to the
39 special district in the same manner as disbursements
-ent 40 which are made from the county treasurer's property tax
410 99 430
SB 566 — 22 -
1
22 -1 trust fund.
2 (l ) Disbursements to cities with more than one
3 subsidiary special district may be made to the city. Each
4 city shall distribute these funds to their individual
5 subsidiary special districts in accordance with the city
6 council's final determination.
7 (m) Any interest which accrues to the Special District
8 Augmentation Fund shall be considered part of the fund
9 and shall not be allocated or distributed in any way to the
10 general fund of the governing body.
11 (n) Notwithstanding any other provision to the
12 contrary, the governing body of Marin County shall not
13 allocate pursuant to this section, to any special district,
14 'other than a special district governed by the county
15 board of supervisors or whose governing board is the
16 same as the county board of supervisors, an amount
17 which is less than the amount of the reduction
18 determined for that district pursuant to subdivision (a) .
19 However, if an allocation shall cause a special district to
20 exceed its appropriations limit established pursuant to
21 Section 7910 of the Government Code, the governing '
22 body shall reduce that allocation in an amount equal to
23 the amount which is in excess of that district's
24 appropriations limit.
25 SEC. 3. This act is an urgency statute necessary for
26 the immediate preservation of the public peace, health,
27 or safety within the meaning of Article IV of the
28 Constitution and shall go into immediate effect. The facts
29. constituting the necessity are:
30 In order to prevent an immediate shortage of funds
31 necessary to fund current expenses and operations of
32 public library services and facilities throughout the state,
33 it is necessary that this act take effect immediately. l
O
ss 440
i
i