Bill Text: CA SB1171 | 2019-2020 | Regular Session | Amended


Bill Title: Reclamation districts: improvement districts: formation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-03-25 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. [SB1171 Detail]

Download: California-2019-SB1171-Amended.html

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1171


Introduced by Senator Nielsen

February 20, 2020


An act to amend Section 50110 of the Water Code, relating to water. An act to add Chapter 7 (commencing with Section 50980) and Chapter 8 (commencing with Section 50986) to Part 5 of Division 15 of the Water Code, relating to reclamation districts.


LEGISLATIVE COUNSEL'S DIGEST


SB 1171, as amended, Nielsen. Water: reclamation districts. Reclamation districts: improvement districts: formation.
(1) Existing law authorizes the owners of 1/2 or more of any body of swamp and overflowed lands, salt marsh, or tidelands, or other lands subject to flood or overflow, to petition the county board of supervisors to form a reclamation district for specified purposes. Existing law authorizes, among other things, a reclamation district to levy and collect assessments on parcels in the district under specified circumstances for purposes of raising funds for the maintenance, repair, and operation of district reclamation works.
This bill would authorize the board of directors of a reclamation district to form an improvement district to incur a bonded indebtedness for the acquisition, construction, completion, or repair of improvements, works, or property to be payable from taxes levied upon less than all of the lands within the reclamation district. The bill would prescribe certain procedures for the creation of the improvement district and for the levying of improvement district assessments, including, respectively, specified notice, hearing, and election provisions.
(2) Existing law, the Improvement Act of 1911, Municipal Improvement Act of 1913, and Improvement Bond Act of 1915 authorize and prescribe procedures for cities and counties, and, in some cases, other public entities, to issue bonds secured by assessments on real property in order to finance the cost of certain improvements to property within their boundaries, including, among other improvements, constructing or maintaining streets, drains, sewers, bridges, and levees. These acts also prescribe procedures for the redemption of bonds and payment of interest on the bonds.
This bill would authorize a reclamation district to use, in its discretion, the provisions and procedures of these acts for the construction of any facilities that the reclamation district is otherwise authorized to construct under existing law.

Existing law authorizes the owners of 12 or more of a body of swamp and overflowed, salt marsh, or tidelands, or other lands subject to flood or overflow that are susceptible of reclamation to petition the county board of supervisors to form a reclamation district. Existing law also authorizes the owners of 12 or more of a body of swamp and overflowed, salt marsh, or tidelands that are susceptible of reclamation and already reclaimed, or in progress of reclamation, and not included in a reclamation district to petition the county board of supervisors to form a reclamation district to maintain, protect, or repair the reclamation work that is in, upon, or appertaining to these lands, or to complete the reclamation of these lands. Existing law also authorizes the formation of district for the reclamation of land within a city if the land is subject to overflow or incursions from the tide or inland waters of the state.

This bill would make nonsubstantive changes in the provision relating to the formation of a reclamation district within a city.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Chapter 7 (commencing with Section 50980) is added to Part 5 of Division 15 of the Water Code, to read:
CHAPTER  7. Adoption of Improvement Acts

50980.
 A district may use in its discretion the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code), the Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code), or the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) for the construction of any facilities authorized to be constructed by a district under the provisions of this division.

50981.
 Notwithstanding the provisions or limitations of any of the improvement acts relating to the work authorized to be done or the improvements authorized to be made thereunder, a district may acquire or construct, by the procedures permitted by this chapter and Chapter 8 (commencing with Section 50986), any improvements authorized by this division, and provide that the cost thereof shall be assessed upon any district to be assessed therefor, and that district need not be composed of lands contiguous to each other.

50982.
 The powers and duties conferred pursuant to Section 50980 on the various boards, officers, and agents of cities shall be exercised by the corresponding boards, officers, and agents of the district.

50983.
 In the application of the improvement acts specified in Section 50980 to proceedings instituted by a district, the terms used in those improvement acts have the following meanings:
(a) “City council,” “council,” or “legislative body” means the board of trustees of the district.
(b) “Municipality” or “city” means the district.
(c) “Clerk” or “city clerk” means the secretary of the district.
(d) “Superintendent of streets,” “street superintendent,” or “city engineer” means any person appointed by the board to perform those duties.
(e) “Tax collector” means the county tax collector.
(f) “Treasurer” or “city treasurer” means the person or officer who has charge of and makes payment of the funds of the district.
(g) “Mayor” means the president of the board.
(h) “Right-of-way” means any parcel of land in, on, under, or through which a right-of-way or easement has been granted to the district for the purpose of constructing and maintaining any district works or improvements.
(i) “Auditor” means the county auditor.

50984.
 Assessments in an improvement district in a district shall be levied, collected, and enforced at the same time and in as nearly the same manner as practicable as annual taxes for purposes of the district in which formed, except that the assessment shall be made in the same manner as provided with respect to improvement districts or distribution districts in irrigation districts.

50984.1.
 Hearings and elections for the levying of assessments in an improvement district in a district shall comply with Section 53753 of the Government Code.

50985.
 No assessment or bond levied or issued pursuant to proceedings under any of the improvement acts, as authorized by this chapter, shall become a lien, and no person shall be deemed to have notice of the assessment, until a certified copy of the assessment in the proceedings under the improvement act being utilized, and the diagram attached to the assessment, are recorded in the office of the county recorder of each county in which any part of the lands assessed are located.

SEC. 2.

 Chapter 8 (commencing with Section 50986) is added to Part 5 of Division 15 of the Water Code, to read:
CHAPTER  8. Formation of Improvement Districts
Article  1. Initiation of Proceedings

50986.
 Whenever the board deems it necessary to incur a bonded indebtedness for the acquisition, construction, completion, or repair of any or all improvements, works, or property mentioned in this division and to provide for the bonded indebtedness to be payable from taxes levied upon less than all of the district, the board shall, by resolution, declare its intention to form an improvement district and to incur the indebtedness.

50986.1.
 The resolution of intention shall also state:
(a) The purpose for which the proposed improvement district is to be formed.
(b) The amount of debt to be incurred, which may include expenses of all proceedings for the authorization, issuance, and sale of the bonds.
(c) That assessments for carrying out this purpose will be levied exclusively upon the taxable property in the proposed improvement district.

50986.2.
 The resolution of intention shall also state that a general description of the proposed improvement, together with a map showing the exterior boundaries of the proposed improvement district with relation to the territory immediately contiguous the proposed improvement district and to the proposed improvement is on file with the secretary and is available for inspection by any person or persons interested. This map shall govern for all details as to the extent of the proposed improvement district.

50986.3.
 The resolution of intention shall also state:
(a) The time and place for a hearing by the board on the questions of the formation and extent of the proposed improvement district, the proposed improvement, and the amount of debt to be incurred.
(b) That at the time and place specified in the resolution, any person interested, including all persons owning property in the district or in the proposed improvement district, will be heard.

50986.4.
 Notice of the hearing shall be given by publishing a copy of the resolution of intention, pursuant to Section 6066 of the Government Code, prior to the time fixed for the hearing in a newspaper circulated in the reclamation district, if there is a newspaper circulated in the district. Notice shall also be given by posting a copy of the resolution of intention in three public places within the proposed improvement district for at least two weeks before the time fixed for the hearing.

Article  2. Hearing and Changes

50987.
 At the time and place fixed in the resolution of intention, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing, any person interested, including any person owning property within the district or within the proposed improvement district, may appear and present any matters material to the questions set forth in the resolution of intention

50987.1.
 The board may change the purpose for which the proposed debt is to be incurred or the amount of bonded debt to be incurred, or both. The board may also change the boundaries of the proposed improvement district, but not so as to include any territory that will not, in its judgment, be benefited by the proposed improvement.

50987.2.
 The purpose or amount of bonded debt or the boundaries of the proposed improvement district shall not be changed by the board except after notice of its intention to do so, given by publication pursuant to Section 6061 of the Government Code in a newspaper printed and published in the district, if there is a newspaper printed and published in the district, and by posting in three public places within the proposed improvement district. The notice shall state the changed purpose and debt proposed and that the exterior boundaries as proposed to be changed are set forth on a map on file with the secretary, which shall govern for all details as to the extent of the proposed improvement district, and shall specify the time and place for hearing on the change, which shall be at least 10 days after publication or posting of the notice.

50987.3.
 At the time and place fixed in the notice of intention, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing, any person interested, including any person owning property within the district or the proposed improvement district, may appear and present any matters material to the changes stated in the notice.

Article  3. Formation

50988.
 At the conclusion of the hearing, the board shall by resolution determine whether it is deemed necessary to incur the bonded indebtedness. If so, the resolution shall also state:
(a) The purpose for which the proposed debt is to be incurred.
(b) The amount of the proposed debt.
(c) That the exterior boundaries of the portion of the district that will be benefited are set forth on a map on file with the secretary, which shall govern for all details as to the extent of the improvement district.
(d) That the portion of the district set forth on the map shall thereupon constitute and be known as “Improvement District (A, B, C, or other designation) of Reclamation District ____.”

50988.1.
 The determinations made in the resolution of formation shall be final and conclusive.

50988.2.
 After the formation of the improvement district pursuant to this chapter, all proceedings for the purpose of a bond election shall be limited and shall apply only to the improvement district, and taxes for the payment of the bonds and the interest thereon shall be levied exclusively upon the taxable property in the improvement district.

Article  4. Calling of Bond Election

50989.
 After the board has made its determination of the matters required to be determined by the resolution of formation, and if the board deems it necessary to incur the bonded indebtedness, the board shall by a further resolution call a special election in the improvement district for the purpose of submitting to the voters thereof the proposition of incurring indebtedness by the issuance of bonds of the district for the improvement district.

50989.1.
 The board shall provide for holding the special election on the day fixed in the resolution calling the election and in accordance with the provisions of the Elections Code so far as they shall be applicable, except as otherwise provided in this division.

Article  5. Advance of Funds

50990.
 The board may advance general funds of the district to accomplish the purposes of an improvement district formed pursuant to this part.

50990.1.
 The board may repay the district for any advance of funds from the proceeds of the sale of bonds authorized for the purposes of the improvement district. To the extent that advances made for improvements for which these bonds were authorized are repaid from funds other than the proceeds of the sale of bonds of the improvement district, the authority of the board to issue bonds of the improvement district in a like amount or amounts shall terminate. The treasurer shall maintain proper records and accounts in which there shall be set forth all repayments of advances to the extent that advances are made for the improvements for which the bonds were authorized and, to the extent that the repayments reduce the amount of bonds that may be issued on behalf of any improvement district, the net principal amount of authorized but unissued bonds of that improvement district.

SECTION 1.Section 50110 of the Water Code is amended to read:
50110.

A district may be formed pursuant to this division for the reclamation of land within a city if that land is subject in any manner to overflow or incursions from the tide or inland waters of the state.

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