Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act.
SB 516
California Bills
20250SB__051694CHP INTRODUCED 2025-02-19 AMENDED_SENATE 2025-04-30 AMENDED_ASSEMBLY 2025-07-17 AMENDED_ASSEMBLY 2025-09-04 PASSED_ASSEMBLY 2025-09-08 PASSED_SENATE 2025-09-10 ENROLLED 2025-09-13 CHAPTERED 2025-10-13 APPROVED 2025-10-13 FILED 2025-10-13 2025 SB CHP CHP 0 Introduced by Senator Ashby LEAD_AUTHOR SENATE Ashby
An act to amend
Section 53398.75 of, and to add
Section 53398.75.8 to, the Government Code, relating to land use. land use Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act. Existing law authorizes the legislative body of a city or a county, defined to include a city and county, to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, as provided.
Existing law provides for the preparation of a proposed infrastructure financing plan, as provided, which takes effect upon adoption by the public financing authority of the district following a specified public hearing and protest procedure.
Existing law authorizes the infrastructure financing plan to provide for the division of taxes levied on taxable property in the area included within the district, as specified, and authorizes the public financing authority to issue bonds by adopting a resolution containing specified provisions, including a determination of the amount of tax revenue available or estimated to be available for the payment of the principal of, and interest on, the bonds.
This bill would establish the California Capital City Downtown Revitalization Act, and would authorize the City or County of Sacramento to create an enhanced infrastructure financing district within the downtown Sacramento geographic area. The bill would authorize an affected taxing entity located entirely, or in part, in the County of Sacramento to opt in to the district.
Existing law specifies that an enhanced infrastructure financing district is not prohibited from utilizing revenues from additional sources to support its activities if the district obtains voter approval, as applicable, and the infrastructure financing plan is approved. This bill would additionally specify that a district is not prohibited from utilizing state funds to support its activities if the district obtains voter approval, as applicable, and the infrastructure financing plan is approved.
The bill would also specify that the California Capital City Downtown Revitalization District may accept state funds, as provided. This bill would make legislative findings and declarations as to the necessity of a special statute for the downtown Sacramento geographic area. This bill would incorporate additional changes to
Section 53398.75 of the Government Code proposed by SB to be operative only if this bill and SB are enacted and this bill is enacted last. MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:
SECTION
Section 53398.75 of the Government Code is amended to read: 53398.75. (
a) Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to
Section 53398.69 to create the district, shall be divided, subject to the provisions of
Section 53993, as follows:
(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to
Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to
Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities.
When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid. (
b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (
a) of this
section or of subdivision (
b) of
Section shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (
b) of
Section 34170.5 of the Health and Safety Code. (
c) The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in
Section 53398.63. (
d) For the purposes of this section, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to
Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to
Part 1.85 (commencing with
Section 34170) of Division of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (
a) of
Section of the Health and Safety Code. (e)
(1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to
Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to
Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county. (
f) This
section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to
Section 53398.69:
(1) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with
Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with
Section 22500) of Division of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with
Section 31500) of Division of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with
Section 38000) of Part of Division of Title of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with
Section 53311) of Part of Division of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with
Section 54703) of Part of Division of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
(11) Any state funds.
SEC. 1.5.
Section 53398.75 of the Government Code is amended to read: 53398.75. (
a) Any infrastructure financing plan may contain a provision that taxes, other than those specified in
Section 53398.75.1, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to
Section 53398.69 to create the district, shall be divided, subject to the provisions of
Section 53993, as follows:
(1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to
Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
(2) That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to
Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities.
When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid. (
b) Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (
a) of this
section or of subdivision (
b) of
Section shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (
b) of
Section 34170.5 of the Health and Safety Code. (
c) The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in
Section 53398.63. (
d) For the purposes of this section, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to
Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to
Part 1.85 (commencing with
Section 34170) of Division of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades to 12, inclusive, community college district, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (
a) of
Section of the Health and Safety Code. (e)
(1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to
Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to
Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2) When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county. (
f) This
section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to
Section 53398.69:
(1) The Improvement Act of 1911 (Division 7 (commencing with
Section 5000) of the Streets and Highways Code).
(2) The Municipal Improvement Act of 1913 (Division 12 (commencing with
Section 10000) of the Streets and Highways Code).
(3) The Improvement Bond Act of 1915 (Division 10 (commencing with
Section 8500) of the Streets and Highways Code).
(4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with
Section 22500) of Division of the Streets and Highways Code).
(5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with
Section 31500) of Division of the Streets and Highways Code).
(6) The Parking District Law of 1951 (Part 4 (commencing with
Section 35100) of Division of the Streets and Highways Code).
(7) The Park and Playground Act of 1909 (Chapter 7 (commencing with
Section 38000) of Part of Division of Title of this code).
(8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with
Section 53311) of Part of Division of this title).
(9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with
Section 54703) of Part of Division of this title).
(10) The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
(11) Any state funds.
SEC.
Section 53398.75.8 is added to the Government Code , to read: 53398.75.8. (
a) This
section shall be known, and may be cited, as the California Capital City Downtown Revitalization Act. (
b) The City of Sacramento or the County of Sacramento may create a California Capital City Downtown Revitalization District. Unless explicitly specified otherwise in this section, a California Capital City Downtown Revitalization District is an enhanced infrastructure financing district subject to the provisions of this chapter. (
c) The area to be financed with funds received pursuant to this
section is within the downtown Sacramento geographic area, defined by the Sacramento River, the American River, Broadway, and Alhambra Boulevard. (
d) An affected taxing entity located entirely, or in part, in the County of Sacramento may opt in to a California Capital City Downtown Revitalization District pursuant to
Section 53398.68. (
e) Upon its creation, a California Capital City Downtown Revitalization District may accept any state funds pursuant to
Section 53398.75.
SEC. 3. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of
Section of
Article IV of the California Constitution because of the unique needs of the City and County of Sacramento and the downtown Sacramento geographic area.
SEC.
Section 1.5 of this bill incorporates amendments to
Section 53398.75 of the Government Code proposed by both this bill and Senate Bill 5. That
section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends