SECTIONS 53318-53329.5

53318.  Proceedings for the establishment of a community facilitiesdistrict may be instituted by the legislative body on its owninitiative and shall be instituted by the legislative body when anyof the following occurs: (a) A written request for the establishment of a district, signedby two members of the legislative body, describing the boundaries ofthe territory that is proposed for inclusion in the area andspecifying the type or types of facilities and services to befinanced by the district, is filed with the legislative body. (b) A petition requesting the institution of the proceedingssigned by the requisite number of registered voters, as specified insubdivision (d) of Section 53319, describing the boundaries of theterritory that is proposed for inclusion in the area and specifyingthe type or types of facilities and services to be financed by thedistrict, is filed with the clerk of the legislative body. Thepetition may consist of any number of separate instruments, each ofwhich shall comply with all of the requirements of the petition,except as to the number of signatures. (c) A petition requesting the institution of the proceedingssigned by landowners owning the requisite portion of the area of theproposed district, as specified in subdivision (d) of Section 53319,describing the boundaries of the territory that is proposed forinclusion in the area and specifying the type or types of facilitiesand services to be financed by the district, is filed with the clerkof the legislative body. (d) The written request filed pursuant to subdivision (a) and thepetition filed pursuant to subdivision (b) are not required to beacted upon until the payment of a fee in an amount that thelegislative body determines, within 45 days of receiving the requestor petition, is sufficient to compensate the legislative body for allcosts incurred in conducting proceedings to create a districtpursuant to this chapter. A petition filed pursuant to subdivision(c) may not be acted upon until payment of a fee in an amount thatthe legislative body determines, within 45 days of receiving thepetition, is sufficient to compensate the legislative body for allcosts incurred in conducting proceedings to create a districtpursuant to this chapter.53318.5.  Notwithstanding any provision of Part 1 (commencing withSection 56000) of Division 3, a local agency formation commissionshall have no power or duty to review and approve or disapprove aproposal to create a community facilities district or a proposal toannex territory to, or detach territory from, such district, pursuantto this chapter.53319.  A petition requesting the institution of proceedings for theestablishment of a community facilities district shall do all of thefollowing: (a) Request the legislative body to institute proceedings toestablish a community facilities district pursuant to this chapter. (b) Describe the boundaries of the territory that is proposed forinclusion in the district. (c) State the type or types of facilities and services proposed tobe financed by the district, which may include proposals for anyadditional information specified by Sections 53321, 53325.7, and53345. (d) Be signed by not less than 10 percent of the registered votersresiding within the territory proposed to be included within thedistrict or by owners of not less than 10 percent of the area of landproposed to be included within the district and not proposed to beexempt from the special tax. If the legislative body finds that thepetition is signed by the requisite number of registered votersresiding within the territory proposed to be included within thedistrict or by the requisite number of owners of land proposed to beincluded within the district, that finding shall be final andconclusive.53320.  Within 90 days after either a written request by two membersof the legislative body or a petition requesting the institution ofproceedings for the establishment of a community facilities districtis filed with the legislative body and the payment of any feerequired under subdivision (d) of Section 53318, the legislative bodyshall adopt a resolution of intention to establish a communityfacilities district in the form specified in Section 53321.53321.  Proceedings for the establishment of a community facilitiesdistrict shall be instituted by the adoption of a resolution ofintention to establish the district which shall do all of thefollowing: (a) State that a community facilities district is proposed to beestablished under the terms of this chapter and describe theboundaries of the territory proposed for inclusion in the district,which may be accomplished by reference to a map on file in the officeof the clerk, showing the proposed community facilities district.The boundaries of the territory proposed for inclusion in thedistrict shall include the entirety of any parcel subject to taxationby the proposed district. (b) State the name proposed for the district in substantially thefollowing form: "Community Facilities District No. ____." (c) Describe the public facilities and services proposed to befinanced by the district pursuant to this chapter. The descriptionmay be general and may include alternatives and options, but it shallbe sufficiently informative to allow a taxpayer within the districtto understand what the funds of the district may be used to finance.If the purchase of completed public facilities or the incurring ofincidental expenses is proposed, the resolution shall identify thosefacilities or expenses. If facilities are proposed to be financedthrough any financing plan, including, but not limited to, any lease,lease-purchase, or installment-purchase arrangement, the resolutionshall briefly describe the proposed arrangement. (d) State that, except where funds are otherwise available, aspecial tax sufficient to pay for all facilities and services,secured by recordation of a continuing lien against all nonexemptreal property in the district, will be annually levied within thearea. The resolution shall specify the rate, method of apportionment,and manner of collection of the special tax in sufficient detail toallow each landowner or resident within the proposed district toestimate the maximum amount that he or she will have to pay. Thelegislative body may specify conditions under which the obligation topay the specified special tax may be prepaid and permanentlysatisfied. The legislative body may specify conditions under whichthe rate of the special tax may be permanently reduced in compliancewith the provisions of Section 53313.9. In the case of any special tax to pay for public facilities and tobe levied against any parcel used for private residential purposes,(1) the maximum special tax shall be specified as a dollar amountwhich shall be calculated and thereby established not later than thedate on which the parcel is first subject to the tax because of itsuse for private residential purposes, which amount shall not beincreased over time except that it may be increased by an amount notto exceed 2 percent per year, (2) the resolution shall specify a taxyear after which no further special tax subject to this sentenceshall be levied or collected, except that a special tax that waslawfully levied in or before the final tax year and that remainsdelinquent may be collected in subsequent years, and (3) theresolution shall specify that under no circumstances will the specialtax levied in any fiscal year against any parcel subject to thissentence be increased as a consequence of delinquency or default bythe owner or owners of any other parcel or parcels within thedistrict by more than 10 percent above the amount that would havebeen levied in that fiscal year had there never been any suchdelinquencies or defaults. For purposes of this paragraph, a parcelshall be considered "used for private residential purposes" not laterthan the date on which an occupancy permit for private residentialuse is issued. Nothing in this paragraph is intended to prohibit thelegislative body from establishing different tax rates for differentcategories of residential property, or from changing the dollaramount of the special tax for the parcel if the size of the residenceis increased or if the size or use of the parcel is changed. (e) Fix a time and place for a public hearing on the establishmentof the district which shall be not less than 30 or more than 60 daysafter the adoption of the resolution. (f) Describe any adjustment in property taxation to pay priorindebtedness pursuant to Sections 53313.6 and 53313.7. (g) Describe the proposed voting procedure. The changes made to this section by Senate Bill 1464 of the1991-92 Regular Session of the Legislature shall not apply to specialtaxes levied by districts for which a resolution of formation wasadopted before January 1, 1993.53321.5.  At the time of the adoption of the resolution of intentionto establish a community facilities district, the legislative bodyshall direct each of its officers who is or will be responsible forproviding one or more of the proposed types of public facilities orservices to be financed by the district, if it is established, tostudy the proposed district and, at or before the time of thehearing, file a report with the legislative body containing a briefdescription of the public facilities and services by type that willin his or her opinion be required to adequately meet the needs of thedistrict and his or her estimate of the cost of providing thosepublic facilities and services. If the purchase of completed publicfacilities or the payment of incidental expenses is proposed, thelegislative body shall direct its appropriate officer to estimate thefair and reasonable cost of those facilities or incidental expenses.If removal or remedial action for the cleanup of any hazardoussubstance is proposed, the legislative body shall (a) direct itsresponsible officer to prepare or cause to be prepared, a remedialaction plan based upon factors comparable to those described insubdivision (d) of Section 25356.1 of the Health and Safety Code or(b) determine, on the basis of the particular facts andcircumstances, that shall be comparable to those described insubdivision (h) of Section 25356.1 of the Health and Safety Code,that the remedial action plan is not required or (c) conditionfinancing of the removal or remedial action upon approval of aremedial action plan pursuant to Section 25356.1 of the Health andSafety Code. All of those reports shall be made a part of the recordof the hearing on the resolution of intention to establish thedistrict.53322.  (a) The clerk of the legislative body shall publish a noticeof the hearing pursuant to Section 6061 in a newspaper of generalcirculation published in the area of the proposed district.Publication shall be complete at least seven days prior to the dateof the hearing. (b) The notice shall contain all of the following information: (1) The text or a summary of the resolution of intention toestablish the district which may refer to documents on file in theoffice of the clerk for detail. (2) The time and place of the hearing on the establishment of thedistrict. (3) A statement that at the hearing the testimony of allinterested persons or taxpayers for or against the establishment ofthe district, the extent of the district, or the furnishing ofspecified types of public facilities or services will be heard. Thenotice shall also describe, in summary, the effect of protests madeby registered voters or landowners against the establishment of thedistrict, the extent of the district, the furnishing of a specifiedtype of facilities or services, or a specified special tax, asprovided in Section 53324. (4) A description of the proposed voting procedure.53322.4.  The clerk of the legislative body may also give notice ofthe hearing by first-class mail to each registered voter and to eachlandowner within the proposed district. This notice shall contain thesame information as is required to be contained in the noticepublished pursuant to Section 53322.53323.  At the hearing, protests against the establishment of thedistrict, the extent of the district, or the furnishing of specifiedtypes of public facilities or services within the district may bemade orally or in writing by any interested person. Any protestspertaining to the regularity or sufficiency of the proceedings shallbe in writing and shall clearly set forth the irregularities anddefects to which objection is made. Any written protest notpersonally presented by the author of that protest at the hearingshall be filed with the clerk of the legislative body at or beforethe time fixed for the hearing. The legislative body may waive anyirregularities in the form or content of any written protest and atthe hearing may correct minor defects in the proceedings. Writtenprotests may be withdrawn in writing at any time before theconclusion of the hearing.53324.  If 50 percent or more of the registered voters, or sixregistered voters, whichever is more, residing within the territoryproposed to be included in the district, or the owners of one-half ormore of the area of the land in the territory proposed to beincluded in the district and not exempt from the special tax, filewritten protests against the establishment of the district, andprotests are not withdrawn so as to reduce the value of the proteststo less than a majority, no further proceedings to create thespecified community facilities district or to authorize the specifiedspecial tax shall be taken for a period of one year from the date ofthe decision of the legislative body. If the majority protests of the registered voters or of thelandowners are only against the furnishing of a specified type ortypes of facilities or services within the district, or againstlevying a specified special tax, those types of facilities orservices or the specified special tax shall be eliminated from theresolution of formation.53325.  The hearing may be continued from time to time, but shall becompleted within 30 days, except that if the legislative body findsthat the complexity of the proposed district or the need for publicparticipation requires additional time, the hearing may be continuedfrom time to time for a period not to exceed six months. Thelegislative body may modify the resolution of intention byeliminating proposed facilities or services, or by changing the rateor method of apportionment of the proposed special tax so as toreduce the maximum special tax for all or a portion of the owners ofproperty within the proposed district, or by removing territory fromthe proposed district. Any modifications shall be made by action ofthe legislative body at the public hearing. If the legislative bodyproposes to modify the resolution of intention in a way that willincrease the probable special tax to be paid by the owner of any lotor parcel, it shall direct that a report be prepared that includes abrief analysis of the impact of the proposed modifications on theprobable special tax to be paid by the owners of lots or parcels inthe district, and shall receive and consider the report beforeapproving the modifications or any resolution of formation thatincludes those modifications. The legislative body shall not modifythe resolution of intention to increase the maximum special tax or toadd territory to the proposed district. At the conclusion of thehearing, the legislative body may abandon the proposed establishmentof the community facilities district or may, after passing upon allprotests, determine to proceed with establishing the district.53325.1.  (a) If the legislative body determines to establish thedistrict, it shall adopt a resolution of formation establishing thedistrict. The resolution of formation shall contain all of theinformation required to be included in the resolution of intention toestablish the district specified in Section 53321. If a special taxis proposed to be levied in the district to pay for any facilities orservices and the special tax has not been eliminated by majorityprotest pursuant to Section 53324, the resolution shall: (1) State that the proposed special tax to be levied within thedistrict has not been precluded by majority protest pursuant toSection 53324. (2) Identify any facilities or services proposed to be funded withthe special tax. (3) Set forth the name, address, and telephone number of theoffice, department, or bureau that will be responsible for preparingannually a current roll of special tax levy obligations by assessor'sparcel number and that will be responsible for estimating futurespecial tax levies pursuant to Section 53340.2. (4) State that upon recordation of a notice of special tax lienpursuant to Section 3114.5 of the Streets and Highways Code, acontinuing lien to secure each levy of the special tax shall attachto all nonexempt real property in the district and this lien shallcontinue in force and effect until the special tax obligation isprepaid and permanently satisfied and the lien canceled in accordancewith law or until collection of the tax by the legislative bodyceases. (5) Set forth the county of recordation and the book and page inthe Book of Maps of Assessments and Community Facilities Districts inthe county recorder's office where the boundary map of the proposedcommunity facilities district has been recorded pursuant to Sections3111 and 3113 of the Streets and Highways Code. (b) In the resolution of formation adopted pursuant to subdivision(a), the legislative body shall determine whether all proceedingswere valid and in conformity with the requirements of this chapter.If the legislative body determines that all proceedings were validand in conformity with the requirements of this chapter, it shallmake a finding to that effect and that finding shall be final andconclusive.53325.3.  A tax imposed pursuant to this chapter is a special taxand not a special assessment, and there is no requirement that thetax be apportioned on the basis of benefit to any property. However,a special tax levied pursuant to this chapter may be on or based on abenefit received by parcels of real property, the cost of makingfacilities or authorized services available to each parcel, or someother reasonable basis as determined by the legislative body.53325.5.  (a) A community facilities district may include areas ofterritory that are not contiguous. (b) In establishing the boundaries of the district, thelegislative body may alter the exterior boundaries of the district toinclude less territory than that described in the notice of thehearing but it may not include any territory not described in thenotice of the hearing.53325.6.  Land devoted primarily to agricultural, timber, orlivestock uses and being used for the commercial production ofagricultural, timber, or livestock products may be included in acommunity facilities district only if such land is contiguous toother land which is included within the described exterior boundariesof the community facilities district, and only if the legislativebody finds that the land will be benefited by any of the types ofpublic facilities and services proposed to be provided within thedistrict. The land may, however, be included in the communityfacilities district, if the owner requests its inclusion.53325.7.  The legislative body may submit a proposition to establishor change the appropriations limit, as defined by subdivision (h) ofSection 8 of Article XIII B of the California Constitution, of acommunity facilities district to the qualified electors of a proposedor established district. The proposition establishing or changingthe appropriations limit shall become effective if approved by thequalified electors voting on the proposition and shall be adjustedfor changes in the per capita personal income in the state andchanges in populations, as defined by subdivisions (b) and (c) ofSection 7901, except that the change in population may be estimatedby the legislative body in the absence of an estimate by theDepartment of Finance, and in accordance with Section 1 of ArticleXIII B of the California Constitution. For purposes of adjusting forchanges in population, the population of the district shall be deemedto be at least one person during each calendar year.53326.  (a) The legislative body shall then submit the levy of anyspecial taxes to the qualified electors of the proposed communityfacilities district or to the qualified electors of the territory tobe annexed by the community facilities district in the next generalelection or in a special election to be held, notwithstanding anyother requirement, including any requirement that elections be heldon specified dates, contained in the Elections Code, at least 90days, but not more than 180 days, following the adoption of theresolution of formation. The legislative body shall provide theresolution of formation, the resolution deeming it necessary to incurbonded indebtedness, if one is adopted, a certified map ofsufficient scale and clarity to show the boundaries of the district,and a sufficient description to allow the election official todetermine the boundaries of the district to the official conductingthe election within three business days after the adoption of theresolution of formation. Assessor's parcel numbers for the landwithin the district shall be included if it is a landowner electionor the district does not conform to an existing district's boundariesand if requested by the official conducting the election. If theelection is to be held less than 125 days following the adoption ofthe resolution of formation, the concurrence of the election officialconducting the election shall be required. However, any time limitspecified by this section or requirement pertaining to the conduct ofthe election, including any time limit or requirement applicable toany election conducted pursuant to Article 5 (commencing with Section53345), may be waived with the unanimous consent of the qualifiedelectors of the proposed district and the concurrence of the electionofficial conducting the election. (b) Except as otherwise provided in subdivision (c), if at least12 persons, who need not necessarily be the same 12 persons, havebeen registered to vote within the territory of the proposedcommunity facilities district for each of the 90 days preceding theclose of the protest hearing, the vote shall be by the registeredvoters of the proposed district, with each voter having one vote.Otherwise, the vote shall be by the landowners of the proposeddistrict and each person who is the owner of land at the close of theprotest hearing, or the authorized representative thereof, shallhave one vote for each acre or portion of an acre of land that he orshe owns within the proposed community facilities district not exemptfrom the special tax. Ballots shall be executed by an owner of aparcel, or by a representative of an owner lawfully appointed torepresent the owner for purposes of the election. Each person castinga ballot assigned to a parcel of property who is not the owner ofthat property must present written evidence to the local agency ofthat person's authority to act for the owner for the election beforecasting the ballot. If more than one of the record owners of anidentified parcel submits or wishes to submit a ballot, the votesattributable to the parcel shall be allocated to ballots for eachowner in proportion to their respective record ownership interest,rounded to the nearest one-tenth of a vote, or, if the ownershipinterests are not shown on the record, as established to thesatisfaction of the local agency, the votes attributable to theparcel shall be allocated according to the ownership interests shownby documentation submitted by those record owners. If no document issubmitted, the votes shall be allocated equally among the parcel'sowners requesting ballots. If the appointment of the representativeto cast the ballot was made as part of the transaction by which thecurrent owners acquired the property, or if the appointment appointsa former owner, or anyone affiliated in any way with a former ownerof the property, the written appointment must be signed by all of theowners, and include a statement signed by all of the ownerssubstantially in the form contained in Section 53341.5. Theappointment is not valid if the ballot measure seeks to authorizefacilities, services, or special taxes in excess of those shown onthe statement. The appointment of a representative to act forproperty for a single specified landowner election under this chaptershall not constitute a violation of any law prohibiting theimpersonation of voters or the inducement to vote in a particularfashion. The number of votes to be voted by a particular landownershall be specified on the ballot provided to that landowner. If thevote is by landowners pursuant to this subdivision, the legislativebody shall determine that any facilities or services financed by thedistrict are necessary to meet increased demands placed upon localagencies as the result of development or rehabilitation occurring inthe district. (c) If the proposed special tax will not be apportioned in any taxyear on any portion of property in residential use in that tax year,as determined by the legislative body, the legislative body mayprovide that the vote shall be by the landowners of the proposeddistrict whose property would be subject to the tax if it were leviedat the time of the election. Each of these landowners shall have onevote for each acre, or portion thereof, that the landowner ownswithin the proposed district that would be subject to the proposedtax if it were levied at the time of the election. (d) Ballots for the special election authorized by subdivision (a)may be distributed to qualified electors by mail with return postageprepaid or by personal service by the election official. Theofficial conducting the election may certify the proper mailing ofballots by an affidavit, that shall constitute conclusive proof ofmailing in the absence of fraud. The voted ballots shall be returnedto the election officer conducting the election not later than thehour specified in the resolution calling the election. However, ifall the qualified voters have voted, the election may be closed withthe concurrence of the official conducting the election.53327.  (a) Except as otherwise provided in this chapter, theprovisions of law regulating elections of the local agency that callsan election pursuant to this chapter, insofar as they may beapplicable, shall govern all elections conducted pursuant to thischapter. Except as provided in subdivision (b), there shall beprepared and included in the ballot material provided to each voteran impartial analysis pursuant to Section 9160, 9280, or 9500 of theElections Code, and arguments and rebuttals, if any, pursuant toSections 9162 to 9167, inclusive, and 9190 of the Elections Code orpursuant to Sections 9281 to 9287, inclusive, and 9295 of theElections Code, or pursuant to Sections 9501 to 9507, inclusive, ofthe Elections Code, or pursuant to other provisions of law applicableto other special districts as appropriate. (b) If the vote is to be by the landowners of the proposeddistrict, analysis and arguments may be waived with the unanimousconsent of all the landowners and shall be so stated in the order forthe election. When the vote is to be by the landowners of theproposed district, the legislative body of the local agency mayauthorize an official of the local agency to conduct the election,including preparation of analysis and compilation of arguments.53327.5.  (a) If the election is to be conducted by mail ballot, theelection official conducting the election shall provide ballots andelection materials pursuant to subdivision (d) of Section 53326 andSection 53327, together with all supplies and instructions necessaryfor the use and return of the ballot. (b) The identification envelope for return of mail ballots used inlandowner elections shall contain the following: (1) The name of the landowner. (2) The address of the landowner. (3) A declaration, under penalty of perjury, stating that thevoter is the owner of record or the authorized representative of thelandowner entitled to vote and is the person whose name appears onthe identification envelope. (4) The printed name and signature of the voter. (5) The address of the voter. (6) The date of signing and place of execution of the declarationdescribed in paragraph (3). (7) A notice that the envelope contains an official ballot and isto be opened only by the canvassing board.53328.  After the canvass of returns of any election pursuant toSection 53326, the legislative body may, pursuant to Section 53340,levy any special tax as specified in the resolution of formationadopted pursuant to subdivision (a) of Section 53325.1 within theterritory of the district if two-thirds of the votes cast upon thequestion of levying the tax are in favor of levying that tax.53328.3.  Upon a determination by the legislative body that therequisite two-thirds of votes cast in an election held pursuant toSection 53326 are in favor of levying the special tax, the clerk ofthe legislative body shall, within 15 days of a landowner election orwithin 90 days of a registered voter election, record the notice ofspecial tax lien provided for in Section 3114.5 of the Streets andHighways Code, whereupon the lien of the special tax shall attach asprovided in Section 3115.5 of the Streets and Highways Code. Thenotice of special tax lien shall be recorded in the office of thecounty recorder in each county that any portion of the district islocated.53328.5.  Division 4.5 (commencing with Section 3100) of the Streetsand Highways Code applies with respect to any proceedings undertakenpursuant to this chapter. This chapter is a "principal act" as thatterm is defined in Section 3100 of the Streets and Highways Code. Inall cases in which special taxes have been approved by the qualifiedelectors pursuant to this chapter prior to January 1, 1989, thelegislative body may direct the clerk of the legislative body toimpose a lien for the special tax on nonexempt real property withinthe district by performing the filings required by Division 4.5(commencing with Section 3100) of the Streets and Highways Code, andthe county recorder shall accept those filings and may charge theclerk a fee for recording and indexing those documents pursuant toSection 3116 of the Streets and Highways Code. The failure of theclerk or recorder to perform the filings shall not subject the localagency or any of its officers or employees to civil liability.53329.  After the canvass of returns of any election conductedpursuant to Section 53326, the legislative body shall take no furtheraction with respect to authorizing the specified special tax withinthe community facilities district for one year from the date of theelection if the question of authorizing that specified special taxfails to receive approval by two-thirds of the votes cast upon thequestion.53329.5.  (a) The owners of three-fourths of the area of lands taxedor liable to be taxed, or their agents (who shall declare underpenalty of perjury that they are such owners or agents), shall not berequired to present sealed proposals or bids when the legislativebody calls for bids preparatory to letting a contract or contracts todo work financed pursuant to this chapter, but may, within 10 daysafter the publication of the notice of the award of the contract,elect to perform the work and enter into a written contract to do thewhole work at prices not exceeding the prices specified in the bidof the bidder to whom the contract was awarded, and all work doneunder the contract shall be subject to any regulations as may beprescribed by the legislative body. (b) If the owners elect not to perform the work and not to enterinto a written contract for that work within 10 days of publicationof the notice of the award of the contract, or to commence the workwithin 15 days after the date of the written contract entered intobetween the owners and the legislative body, and to continue thatwork with diligence to completion, as determined by the legislativebody, a contract shall be entered into by the legislative body withthe original bidder to whom the contract was awarded at the pricesspecified in his or her bid. (c) If, in the opinion of the legislative body, the publicinterest will not be served by allowing the property owners to enterinto a contract in accordance with subdivision (a), the legislativebody may so provide in the resolution of intention adopted pursuantto Section 53321.