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Statutes > California > Gov > 53311-53317.5

GOVERNMENT CODE
SECTION 53311-53317.5



53311.  This chapter shall be known and may be cited as the
"Mello-Roos Community Facilities Act of 1982".



53311.5.  This chapter provides an alternative method of financing
certain public capital facilities and services, especially in
developing areas and areas undergoing rehabilitation. The provisions
of this chapter shall not affect or limit any other provisions of law
authorizing or providing for the furnishing of governmental
facilities or services or the raising of revenue for these purposes.
A local government may use the provisions of this chapter instead of
any other method of financing part or all of the cost of providing
the authorized kinds of capital facilities and services.



53312.  Any provision in this chapter which conflicts with any other
provision of law shall prevail over the other provision of law.



53312.5.  The local agency may take any actions or make any
determinations which it determines are necessary or convenient to
carry out the purposes of this chapter and which are not otherwise
prohibited by law.


53312.7.  (a) On and after January 1, 1994, a local agency may
initiate proceedings to establish a district pursuant to this chapter
only if it has first considered and adopted local goals and policies
concerning the use of this chapter. The policies shall include at
least the following:
   (1) A statement of the priority that various kinds of public
facilities and services shall have for financing through the use of
this chapter, including public facilities to be owned and operated by
other public agencies, including school districts, and services to
be provided by other public agencies.
   (2) A statement concerning the credit quality to be required of
bond issues, including criteria to be used in evaluating the credit
quality.
   (3) A statement concerning steps to be taken to ensure that
prospective property purchasers are fully informed about their
taxpaying obligations imposed under this chapter.
   (4) A statement concerning criteria for evaluating the equity of
tax allocation formulas, and concerning desirable and maximum amounts
of special tax to be levied against any parcel pursuant to this
chapter.
   (5) A statement of definitions, standards, and assumptions to be
used in appraisals required by Section 53345.8.
   (b) The goals and policies adopted by any school district pursuant
to subdivision (a) shall include, but not be limited to, a priority
access policy that gives priority attendance access to students
residing in a community facilities district whose residents have paid
special taxes that have, in whole or in part, financed the
construction of school district facilities. The degree of priority
shall reflect the proportion of each school's financing provided
through the community facilities district. In developing a priority
access policy for residents of a community facilities district, a
school district may incorporate a school district attendance policy
including criteria for student assignment such as goals to achieve
ethnic, racial, or socioeconomic diversity; federal, state, or court
mandates; transportation needs, safe pedestrian routes; grade levels
for which facilities were designed; and ensuring students continuity
of schooling within any single school year.



53312.8.  (a) Territory that is dedicated or restricted to
agricultural, open-space, or conservation uses may not be included
within or annexed to a community facilities district that provides or
would provide facilities or services related to sewers,
nonagricultural water, or streets and roads, unless the landowner
consents to the inclusion or annexation of that territory to the
community facilities district.
   (b) Notwithstanding any other provision of law, and except as
provided in subdivision (c), if a landowner consents to the inclusion
or annexation of territory in a community facilities district
pursuant to subdivision (a), the landowner and any local agency may
not terminate any easement or effect a final cancellation of any
contract with respect to any portion of the land included within or
annexed to the community facilities district prior to the release of
land that is the subject of the proposed termination or cancellation
from all liens that arise under the community facilities district for
any sewers, nonagricultural water, or streets and roads that did not
benefit land uses allowed under the contract or easement.
   (c) Subdivision (b) shall not apply to any of the following:
   (1) Land under a contract entered into pursuant to the California
Land Conservation Act of 1965 (Chapter 7 (commencing with Section
51200) of Part 1 of Division 1) included in a community facilities
district for which a tentative map may be filed pursuant to paragraph
(3) of subdivision (d) of Section 66474.4 or for which a tentative
cancellation has been approved.
   (2) Land subject to a conservation easement entered into prior to
January 1, 2003.
   (3) Land included in a community facilities district prior to the
imposition of an enforceable restriction listed in subdivision (d) or
prior to January 1, 2003.
   (4) Land subject to an enforceable restriction listed in
subdivision (d) that expressly waives the requirement of subdivision
(b).
   (d) As used in this section, "territory that is dedicated or
restricted to agricultural, open-space, or conservation uses" means
territory that is subject to any of the following:
   (1) An open-space easement entered into pursuant to Chapter 6.5
(commencing with Section 51050) of Part 1 of Division 1.
   (2) An open-space easement entered into pursuant to the Open-Space
Easement Act of 1974 (Chapter 6.6 (commencing with Section 51070) of
Part 1 of Division 1).
   (3) A contract entered into pursuant to the California Land
Conservation Act of 1965 (Chapter 7 (commencing with Section 51200)
of Part 1 of Division 1).
   (4) A farmland security zone contract created pursuant to Article
7 (commencing with Section 51296) of Chapter 7 of Part 1 of Division
1), except as otherwise provided in Section 51296.4.
   (5) A conservation easement entered into pursuant to Chapter 4
(commencing with Section 815) of Title 2 of Part 2 of Division 2 of
the Civil Code.
   (6) An agricultural conservation easement entered into pursuant to
Chapter 4 (commencing with Section 10260) of Division 10.2 of the
Public Resources Code.
   (7) An agricultural conservation easement entered into pursuant to
Section 51256.


53313.  A community facilities district may be established under
this chapter to finance any one or more of the following types of
services within an area:
   (a) Police protection services, including, but not limited to,
criminal justice services. However, criminal justice services shall
be limited to providing services for jails, detention facilities, and
juvenile halls.
   (b) Fire protection and suppression services, and ambulance and
paramedic services.
   (c) Recreation program services, library services, maintenance
services for elementary and secondary schoolsites and structures, and
the operation and maintenance of museums and cultural facilities. A
special tax may be levied for any of the services specified in this
subdivision only upon approval of the registered voters as specified
in subdivision (b) of Section 53326. An election to enact a special
tax for recreation program services, library services, and the
operation and maintenance of museums and cultural facilities may be
conducted pursuant to subdivision (c) of Section 53326.
   (d) Maintenance and lighting of parks, parkways, streets, roads,
and open space.
   (e) Flood and storm protection services, including, but not
limited to, the operation and maintenance of storm drainage systems,
plowing and removal of snow, and sandstorm protection systems.
   (f) Services with respect to removal or remedial action for the
cleanup of any hazardous substance released or threatened to be
released into the environment. As used in this subdivision, the terms
"remedial action" and "removal" shall have the meanings set forth in
Sections 25322 and 25323, respectively, of the Health and Safety
Code, and the term "hazardous substance" shall have the meaning set
forth in Section 25281 of the Health and Safety Code. Community
facilities districts shall provide the State Department of Health
Services and local health and building departments with notification
of any cleanup activity pursuant to this subdivision at least 30 days
prior to commencement of the activity.
   A community facilities district tax approved by vote of the
landowners of the district may only finance the services authorized
in this section to the extent that they are in addition to those
provided in the territory of the district before the district was
created. The additional services may not supplant services already
available within that territory when the district was created.
   Bonds may not be issued pursuant to this chapter to fund any of
the services specified in this section, although bonds may be issued
to fund capital facilities to be used in providing these services.




53313.1.  To the extent that any capital facility is provided under
this chapter, a duplicate levy, impact fee, or other exaction may not
be required for the same purpose under Section 66477.



53313.4.  Any territory within a community facilities district
established for the acquisition or improvement of school facilities
for a school district shall be exempt from any fee, increase in any
fee other than a cost-of-living increase as authorized by law, or
other requirement first levied, increased, or imposed pursuant to
Chapter 6 (commencing with Section 17620) of Part 10.5 of Division 1
of Title 1 of the Education Code or under Chapter 4.7 (commencing
with Section 65970) of Division 1 of Title 7, by or to benefit any
other school district, except as otherwise negotiated between the
school districts. That exemption shall apply until a date 10 years
following the most recent issuance of bonds by the community
facilities district or, if no bonds have ever been issued by the
community facilities district, a date 10 years following the
formation of the community facilities district.



53313.5.  A community facilities district may also finance the
purchase, construction, expansion, improvement, or rehabilitation of
any real or other tangible property with an estimated useful life of
five years or longer or may finance planning and design work that is
directly related to the purchase, construction, expansion, or
rehabilitation of any real or tangible property. The facilities need
not be physically located within the district. A district may not
lease out facilities that it has financed except pursuant to a lease
agreement or annexation agreement entered into prior to January 1,
1988. A district may only finance the purchase of facilities whose
construction has been completed, as determined by the legislative
body, before the resolution of formation to establish the district is
adopted pursuant to Section 53325.1, except that a district may
finance the purchase of facilities completed after the adoption of
the resolution of formation if the facility was constructed as if it
had been constructed under the direction and supervision, or under
the authority of, the local agency that will own or operate the
facility. For example, a community facilities district may finance
facilities, including, but not limited to, the following:
   (a) Local park, recreation, parkway, and open-space facilities.
   (b) Elementary and secondary schoolsites and structures provided
that the facilities meet the building area and cost standards
established by the State Allocation Board.
   (c) Libraries.
   (d) Child care facilities, including costs of insuring the
facilities against loss, liability insurance in connection with the
operation of the facility, and other insurance costs relating to the
operation of the facilities, but excluding all other operational
costs. However, the proceeds of bonds issued pursuant to this chapter
shall not be used to pay these insurance costs.
   (e) The district may also finance the construction or
undergrounding of water transmission and distribution facilities,
natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable
television lines to provide access to those services to customers who
do not have access to those services or to mitigate existing visual
blight. The district may enter into an agreement with a public
utility to utilize those facilities to provide a particular service
and for the conveyance of those facilities to the public utility.
"Public utility" shall include all utilities, whether public and
regulated by the Public Utilities Commission, or municipal. If the
facilities are conveyed to the public utility, the agreement shall
provide that the cost or a portion of the cost of the facilities that
are the responsibility of the utility shall be refunded by the
public utility to the district or improvement area thereof, to the
extent that refunds are applicable pursuant to (1) the Public
Utilities Code or rules of the Public Utilities Commission, as to
utilities regulated by the commission, or (2) other laws regulating
public utilities. Any reimbursement made to the district shall be
utilized to reduce or minimize the special tax levied within the
district or improvement area, or to construct or acquire additional
facilities within the district or improvement area, as specified in
the resolution of formation.
   (f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage
and treatment systems and sandstorm protection systems.
   (g) The district may also pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or
defease any obligation to pay or any indebtedness secured by any tax,
fee, charge, or assessment levied within the area of a community
facilities district or may pay debt service on that indebtedness.
When the amount financed by the district is to pay a tax, fee,
charge, or assessment imposed by a public agency other than the one
conducting the proceedings, and if the amount provided to the other
public agency will not be entirely used to pay off or prepay an
assessment lien or special tax obligation pursuant to the property
owner's legal right to do so, the written consent of the other public
agency is required. In addition, tax revenues of a district may be
used to make lease or debt service payments on any lease,
lease-purchase contract, or certificate of participation used to
finance authorized district facilities.
   (h) Any other governmental facilities that the legislative body
creating the community facilities district is authorized by law to
contribute revenue to, or construct, own, or operate. However, the
district shall not operate or maintain or, except as otherwise
provided in subdivisions (e) and (k), have any ownership interest in
any facilities for the transmission or distribution of natural gas,
telephone service, or electrical energy.
   (i) (1) A district may also pay for the following:
   (A) Work deemed necessary to bring buildings or real property,
including privately owned buildings or real property, into compliance
with seismic safety standards or regulations. Only work certified as
necessary to comply with seismic safety standards or regulations by
local building officials may be financed. No project involving the
dismantling of an existing building and its replacement by a new
building, nor the construction of a new or substantially new building
may be financed pursuant to this subparagraph. Work on qualified
historical buildings or structures shall be done in accordance with
the State Historical Building Code (Part 2.7 (commencing with Section
18950) of Division 13 of the Health and Safety Code).
   (B) In addition, within any county or area designated by the
President of the United States or by the Governor as a disaster area
or for which the Governor has proclaimed the existence of a state of
emergency because of earthquake damage, a district may also pay for
any work deemed necessary to repair any damage to real property
directly or indirectly caused by the occurrence of an earthquake
cited in the President's or the Governor's designation or
proclamation, or by aftershocks associated with that earthquake,
including work to reconstruct, repair, shore up, or replace any
building damaged or destroyed by the earthquake, and specifically
including, but not limited to, work on any building damaged or
destroyed in the Loma Prieta earthquake that occurred on October 17,
1989, or by its aftershocks. Work may be financed pursuant to this
subparagraph only on property or buildings identified in a resolution
of intention to establish a community facilities district adopted
within seven years of the date on which the county or area is
designated as a disaster area by the President or by the Governor or
on which the Governor proclaims for the area the existence of a state
of emergency.
   (2) Work on privately owned property, including reconstruction or
replacement of privately owned buildings pursuant to subparagraph (B)
of paragraph (1), may only be financed by a tax levy if all of the
votes cast on the question of levying the tax, vote in favor of
levying the tax, or with the prior written consent to the tax of the
owners of all property that may be subject to the tax, in that case
the prior written consent shall be deemed to constitute a vote in
favor of the tax and any associated bond issue. Any district created
to finance seismic safety work on privately owned buildings,
including repair, reconstruction, or replacement of privately owned
buildings pursuant to this subdivision, shall consist only of lots or
parcels that the legislative body finds have buildings that were
damaged or destroyed by the earthquake cited pursuant to subparagraph
(B) of paragraph (1) or by the aftershocks of that earthquake.
   (j) A district may also pay for the following:
   (1) Work deemed necessary to repair and abate damage caused to
privately owned buildings and structures by soil deterioration. "Soil
deterioration" means a chemical reaction by soils that causes
structural damage or defects in construction materials including
concrete, steel, and ductile or cast iron. Only work certified as
necessary by local building officials may be financed. No project
involving the dismantling of an existing building or structure and
its replacement by a new building or structure, nor the construction
of a new or substantially new building or structure may be financed
pursuant to this subparagraph.
   (2) Work on privately owned buildings and structures pursuant to
this subdivision, including reconstruction, repair, and abatement of
damage caused by soil deterioration, may only be financed by a tax
levy if all of the votes cast on the question of levying the tax vote
in favor of levying the tax. Any district created to finance the
work on privately owned buildings or structures, including
reconstruction, repair, and abatement of damage caused by soil
deterioration, shall consist only of lots or parcels on which the
legislative body finds that the buildings or structures to be worked
on pursuant to this subdivision suffer from soil deterioration.
   (k) A district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for the purposes of
removal or remedial action for the cleanup of any hazardous substance
released or threatened to be released into the environment. As used
in this subdivision, the terms "remedial action" and "removal" shall
have the meaning set forth in Sections 25322 and 25323, respectively,
of the Health and Safety Code, and the term "hazardous substance"
shall have the meaning set forth in Section 25281 of the Health and
Safety Code.


53313.51.  The legislative body may enter into an agreement for the
construction of discrete portions or phases of facilities to be
constructed and purchased consistent with Section 53313.5. The
agreement may include any provisions that the legislative body
determines are necessary or convenient, but shall do all of the
following:
   (a) Identify the specific facilities or discrete portions or
phases of facilities to be constructed and purchased. The legislative
body may agree to purchase discrete portions or phases of facilities
if the portions or phases are capable of serviceable use as
determined by the legislative body.
   (b) Notwithstanding subdivision (a), when the purchase value of a
facility exceeds one million dollars ($1,000,000), the legislative
body may agree to purchase discrete portions or phases of the
partially completed project.
   (c) Identify procedures to ensure that the facilities are
constructed pursuant to plans, standards, specifications, and other
requirements as determined by the legislative body.
   (d) Specify a price or a method to determine a price for each
facility or discrete portion or phase of a facility. The price may
include an amount reflecting the interim cost of financing cash
payments that must be made during construction of the project, at the
discretion of the legislative body.
   (e) Specify procedures for final inspection and approval of
facilities or discrete portions of facilities, for approval of
payment, and for acceptance and conveyance or dedication of the
facilities to the local agency.



53313.6.  The legislative body may provide for adjustments in ad
valorem property taxes pursuant to Section 53313.7 within a community
facilities district only after making both of the following findings
at the conclusion of the public hearing held pursuant to Article 2
(commencing with Section 53318):
   (a) That an ad valorem property tax is, or will be, levied on
property within a proposed community facilities district for the
exclusive purpose of making lease payments on an existing lease or
paying principal or interest on outstanding bonds or other existing
indebtedness, including state school building loans, incurred to
finance construction of capital facilities.
   (b) That capital facilities to be financed by the community
facilities district will provide the same services to the territory
of the community facilities district as were provided by the capital
facilities mentioned in subdivision (a).



53313.7.  (a) Upon making the findings pursuant to Section 53313.6,
the legislative body may, with the concurrence of the legislative
body which levied the property tax described in subdivision (a) of
Section 53313.6, by ordinance, determine that the total annual amount
of ad valorem property tax revenue due from parcels within the
proposed community facilities district, for purposes of paying
principal and interest on the debt identified in Section 53313.6,
shall not be increased after the date on which the resolution of
formation for the community facilities district is adopted, or after
a later date determined by the legislative body creating the
community facilities district with the concurrence of the legislative
body which levied the property tax in question.
   (b) The legislative body may, by ordinance, with the concurrence
of the legislative body that levied the property tax described in
subdivision (a) of Section 53313.6, determine to cease and eliminate
the freeze on property tax revenue established pursuant to
subdivision (a), upon determining that the community facilities
district's special tax or portion thereof levied on the parcels in
question to pay for the capital facilities specified in subdivision
(b) of Section 53313.6 shall cease to be levied and collected.




53313.9.  (a) All or any part of the cost of any school facilities
financed by a community facilities district may be shared by the
State Allocation Board pursuant to Section 17718.5 of the Education
Code.
   (b) If the State Allocation Board shares in any part of the cost
of the school facilities, the ownership of those facilities and the
real property upon which the facilities are located shall be held as
provided in the Leroy F. Greene School Facilities Act of 1998
(Chapter 12.5 (commencing with Section 17070.10) of Part 10 of
Division 1 of the Education Code).
   (c) The resolutions of intention, formation, consideration, and to
incur bonded indebtedness, adopted pursuant to subdivision (b) of
Section 53338 or Sections 53321, 53325.1, 53334, 53339.2, 53345, and
53351 may provide for cost sharing by the State Allocation Board and
for appropriate adjustment of the principal amount of any bond issue
or issues and of the rate and method of apportionment of any special
tax.



53314.  The legislative body may from time to time transfer moneys
to a community facilities district or to an improvement area within a
community facilities district, for the benefit of the district or
improvement area, from any funds available to the legislative body.
Any moneys so transferred may be used for the payment of any
currently payable expenses incurred by reason of the construction or
acquisition of any facilities or provision of any authorized services
within the district or improvement area prior to December 1 of the
first fiscal year in which a special tax may be levied for the
facilities or services within the district or improvement area. The
rate of interest earned by the investment of those moneys shall be
determined by the legislative body.



53314.3.  In the first fiscal year in which a special tax or charge
is levied for any facility or for any services in a community
facilities district or a zone within a community facilities district,
the legislative body shall include in the levy a sum sufficient to
repay to the legislative body the amounts transferred to that
district or zone pursuant to Section 53314. The amounts borrowed,
with interest, shall be retransferred to the proper fund or funds
from the first available receipts from the special levy in that
district or zone.
   Notwithstanding the above provisions, the legislative body may, by
a resolution adopted no later than the time of the first levy,
extend the repayment of the transferred funds over a period of time
not to exceed three consecutive years, in which event the levy and
each subsequent levy shall include a sum sufficient to repay the
amount specified by the legislative body for the year of the levy.



53314.5.  Pursuant to a resolution adopted by the legislative body,
the legislative body may appropriate any of its available moneys to a
revolving fund to be used for the acquisition of real or personal
property, engineering services, or the construction of structures or
improvements needed in whole or in part to provide one or more of the
facilities of a community facilities district. The revolving fund
shall be reimbursed from tax revenues or other moneys available from
the facilities district, and no sums shall be disbursed from the fund
until the legislative body has, by resolution, established the
method by, and term not exceeding five years within, which the
community facilities district is to reimburse the fund. The district
shall reimburse the fund for any amount disbursed to the area within
five years after such disbursement, together with interest at the
current rate per annum received on similar types of investments by
the legislative body as determined by the local agency's treasurer.



53314.6.  (a) In connection with the financing of services and
facilities pursuant to subdivision (f) of Section 53313 and
subdivision (k) of Section 53313.5, the legislative body may
establish a revolving fund to be kept in the treasury of the
district. Except as provided in subdivision (b), moneys in the
revolving fund shall be expended solely for the payment of costs with
respect to those services and facilities. The revolving fund may be
funded from time to time with moneys derived from any of the
following:
   (1) Proceeds of the sale of bonds issued pursuant to Article 5
(commencing with Section 53345), notwithstanding any limitation
contained in Section 53345.3.
   (2) Any taxes or charges authorized under this chapter.
   (3) Any other lawful source.
   (b) Subject to the provisions of any resolution, trust agreement
or indenture providing for the issuance of district bonds for the
purposes set forth in subdivision (k) of Section 53313.5, the
legislative body may withdraw money from the revolving fund whenever
and to the extent that it finds that the amount of money therein
exceeds the amount necessary to accomplish the purposes for which the
revolving fund was established. Any moneys withdrawn from the
revolving fund shall be used to redeem bonds of the district issued
for the purposes set forth in subdivision (k) of Section 53313.5 or
shall be paid to taxpayers in the district in amounts that the
legislative body determines.



53314.7.  (a)  Any responsible party as defined by subdivision (a)
of Section 25323.5 of the Health and Safety Code shall be liable to
the district for the costs incurred in the removal or remedial action
for the cleanup of any hazardous substance released or threatened to
be released into the environment. The amount of the costs shall
include interest on the costs accrued from the date of expenditure.
The interest shall be calculated based on the average annual rate of
return on the district's investment of surplus funds for the fiscal
year in which the district incurred the costs. Recovery of costs by a
community facilities district under this section shall be commenced
before or immediately upon completion of the removal or remedial
action, and payments received hereunder by the district shall be
deposited in the revolving fund in accordance with Section 53314.6.
   (b) To expedite cleanup, this section is intended to provide local
jurisdictions an alternative method of financing the cost of removal
or remedial action for the cleanup of any hazardous substance
through the issuance of voter-approved limited obligation bonds. The
provisions of this section shall not affect or limit the provisions
of any other law establishing the liability of any person for, or
otherwise regulating, the generation, transportation, storage,
treatment, or disposal of hazardous substances. The scope and
standard of liability for any costs recoverable pursuant to Section
53314.7 shall be the scope and standard of liability set forth in the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended (42 U.S.C. Sec. 6901 et seq.), or any other
provision of state or federal law establishing responsibility for
cleanup of hazardous waste sites.



53314.8.  At any time either before or after the formation of the
district, the legislative body may provide, by ordinance, that for a
period specified in the ordinance, the local agency may contribute,
from any source of revenue not otherwise prohibited by law, any
specified amount, portion, or percentage of the revenues for the
purposes set forth in the ordinance, limited to the following: the
acquisition or construction of a facility, the acquisition of
interest in real property, or the payment of debt service with
respect to the financing of either, the provision of authorized
services, and the payment of expenses incidental thereto. The
contribution shall not constitute an indebtedness or liability of the
local agency.



53314.9.  (a) Notwithstanding Section 53313.5, at any time either
before or after the formation of the district, the legislative body
may accept advances of funds or work in-kind from any source,
including, but not limited to, private persons or private entities
and may provide, by resolution, for the use of those funds or that
work in-kind for any authorized purpose, including, but not limited
to, paying any cost incurred by the local agency in creating a
district. The legislative body may enter into an agreement, by
resolution, with the person or entity advancing the funds or work
in-kind, to repay all or a portion of the funds advanced, or to
reimburse the person or entity for the value, or cost, whichever is
less, of the work in-kind, as determined by the legislative body,
with or without interest, under all of the following conditions:
   (1) The proposal to repay the funds or the value or cost of the
work in-kind, whichever is less, is included both in the resolution
of intention to establish a district adopted pursuant to Section
53321 and in the resolution of formation to establish the district
adopted pursuant to Section 53325.1, or in the resolution of
consideration to alter the types of public facilities and services
provided within an established district adopted pursuant to Section
53334.
   (2) Any proposed special tax or change in a special tax is
approved by the qualified electors of the district pursuant to this
chapter. Any agreement shall specify that if the qualified electors
of the district do not approve the proposed special tax or change in
a special tax, the local agency shall return any funds which have not
been committed for any authorized purpose by the time of the
election to the person or entity advancing the funds.
   (3) Any work in-kind accepted pursuant to this section shall have
been performed or constructed as if the work had been performed or
constructed under the direction and supervision, or under the
authority of, the local agency.
   (b) The agreement shall not constitute a debt or liability of the
local agency.



53315.  This chapter shall be liberally construed in order to
effectuate its purposes. No error, irregularity, informality, and no
neglect or omission of any officer, in any procedure taken under this
chapter, which does not directly affect the jurisdiction of the
legislative body to order the installation of the facility or the
provision of service, shall void or invalidate such proceeding or any
levy for the costs of such facility or service.



53315.3.  The failure of any person to receive a notice, resolution,
order, or other matter shall not affect in any way whatsoever the
validity of any proceedings taken under this chapter, or prevent the
legislative body from proceeding with any hearing so noticed.



53315.6.  When any proceeding is initiated under this chapter by a
legislative body other than that of a city or county, a copy of the
resolution of intention shall be transmitted to the legislative body
of the city, where the land to be assessed lies within the corporate
limits of any city, or of the county, where the land to be assessed
lies within an unincorporated territory.



53315.8.  A county may not form a district within the territorial
jurisdiction of a city without the consent of the legislative body of
the city.


53316.  This chapter applies to all local agencies insofar as those
entities have the power to install or contribute revenue for any of
the facilities or provide or contribute revenue for any of the
services authorized under this chapter. This chapter authorizes local
agencies to create community facilities districts pursuant to this
chapter within their territorial limits. A local agency may initiate
proceedings pursuant to Section 53318 to include territory proposed
for annexation to the local agency within a community facilities
district if a petition or resolution of application for the
annexation of the territory to the local agency has been accepted for
filing and a certificate of filing has been issued by the executive
officer of the local agency formation commission at the time the
proceedings to create the district are initiated. Those proceedings
may be completed only if the annexation of the territory to the local
agency is completed. The officers of local agencies who have similar
powers and duties, as determined by the legislative body of the
local agency, as the municipal officers referred to in this chapter
shall have the powers and duties given by this chapter to the
municipal officials. Where no similar officer exists, the legislative
body of the local agency shall, by resolution, appoint a person or
designate an officer to perform the duties under this chapter. Any
local agency that has no authority to enact an ordinance under other
laws may, for purposes of this chapter, enact an ordinance in
substantially the same manner as provided for the enactment of a city
ordinance in Chapter 2 (commencing with Section 36900) of Part 2 of
Division 3 of Title 4.



53316.2.  (a) A community facilities district may finance facilities
to be owned or operated by a public agency other than the agency
that created the district, or services to be provided by a public
agency other than the agency that created the district, or any
combination, only pursuant to a joint community facilities agreement
or a joint exercise of powers agreement adopted pursuant to this
section. A joint community facilities agreement or a joint exercise
of powers agreement with a state or federal agency shall not be
required if the local agency that created the district is the agency
that would, in the absence of the district, enter into an agreement
with the state or federal agency for the provision of the facilities
or services, or if the local agency that created the district enters
into a joint agreement with the public agency that would, in the
absence of the district, enter into an agreement with the state or
federal agency for the provision of the facilities or services.
   (b) At any time prior to the adoption of the resolution of
formation creating a community facilities district or a resolution of
change to alter a district, or a resolution or resolutions
authorizing issuance of bonds pursuant to Section 53356, the
legislative bodies of two or more local agencies may enter into a
joint community facilities agreement pursuant to this section and
Sections 53316.4 and 53316.6 or into a joint exercise of powers
agreement pursuant to the Joint Exercise of Powers Act (Chapter 5
(commencing with Section 6500) of Division 7 of Title 1) to exercise
any power authorized by this chapter with respect to the community
facilities district being created or changed if the legislative body
of each entity adopts a resolution declaring that the joint agreement
would be beneficial to the residents of that entity.
   (c) Notwithstanding the Joint Exercise of Powers Act, a
contracting party may use the proceeds of any special tax or charge
levied pursuant to this chapter or, in the case of facilities, of any
bonds or other indebtedness issued pursuant to this chapter to
provide facilities or services which that contracting party is
otherwise authorized by law to provide, even though another
contracting party does not have the power to provide those facilities
or services.
   (d) Notwithstanding subdivision (b), nothing in this section shall
prevent entry into or amendment of a joint community facilities
agreement or a joint exercise of powers agreement at any time, if the
new agreement or amendment is necessary, as determined by the
legislative body, for either of the following reasons:
   (1) To allow an orderly transition of governmental facilities and
finances in the case of any change in governmental organization
approved pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5) or other law governing the reorganization of any
agency that is a party to the agreement.
   (2) To allow participation in the agreement by a state or federal
agency, including, but not limited to, the California Department of
Transportation. Participation in an agreement by a state or federal
agency is purely optional.
   (e) Notwithstanding any other provision of this chapter, no local
agency that is party to a joint exercise of powers agreement or joint
community facilities agreement shall have primary responsibility for
formation of a district, or for an extension of authorized
facilities and services or a change in special taxes pursuant to
Article 3 (commencing with Section 53330), unless that local agency
is one or more of the following:
   (1) A city, a county, or a city and county.
   (2) An agency created pursuant to a joint powers agreement that is
separate from the parties to the agreement, is responsible for the
administration of the agreement, and is subject to the notification
requirement of Section 6503.5.
   (3) An agency that is reasonably expected to have responsibility
for providing facilities or services to be financed by a larger share
of the proceeds of special taxes and bonds of the district or
districts created or changed pursuant to the joint exercise of powers
agreement or the joint community facilities agreement than any other
local agency.


53316.4.  The agreement entered into pursuant to Section 53316.2
shall contain a description of the facilities and services to be
provided under the agreement, and any real or tangible property which
is to be purchased, constructed, expanded, or rehabilitated.




53316.6.  The agreement entered into pursuant to Section 53316.2 may
provide for the division of responsibility to provide any of the
facilities or services among the entities entering into the
agreement. The agreement shall provide for the allocation and
distribution of the proceeds of any special tax levy among the
parties to the agreement.



53317.  Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.
   (a) "Clerk" means the clerk of the legislative body of a local
agency.
   (b) "Community facilities district" means a legally constituted
governmental entity established pursuant to this chapter for the sole
purpose of financing facilities and services.
   (c) "Cost" means the expense of constructing or purchasing the
public facility and of related land, right-of-way, easements,
including incidental expenses, and the cost of providing authorized
services, including incidental expenses.
   (d) "Debt" means any binding obligation to pay or repay a sum of
money, including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals, or long-term contracts.
   (e) "Incidental expense" includes all of the following:
   (1) The cost of planning and designing public facilities to be
financed pursuant to this chapter, including the cost of
environmental evaluations of those facilities.
   (2) The costs associated with the creation of the district,
issuance of bonds, determination of the amount of taxes, collection
of taxes, payment of taxes, or costs otherwise incurred in order to
carry out the authorized purposes of the district.
   (3) Any other expenses incidental to the construction, completion,
and inspection of the authorized work.
   (f) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body. The
legislative body has no obligation to obtain other information as to
the ownership of the land, and its determination of ownership shall
be final and conclusive for the purposes of this chapter. A public
agency is not a landowner or owner of land for purposes of this
chapter, unless one of the following exists:
   (1) The land owned by a public agency would be subject to a
special tax pursuant to Section 53340.1.
   (2) The public agency has acquired the property by purchase or
negotiation in connection with foreclosure of a special tax lien and
it is intended that the property will be transferred to private
ownership.
   (3) The public agency states in the proceedings that its land is
intended to be transferred to private ownership and provides in the
proceedings that its land will be subject to the special tax on the
same basis as private property within the district and affirmatively
waives any defense based on the fact of public ownership, to any
action to foreclose on the property in the event of nonpayment of the
special tax.
   (4) The land owned by a public agency is within the territory of a
military base that is closed or is being closed.
   (g) "Legislative body" means the legislative body or governing
board of any local agency.
   (h) "Local agency" means any city or county, whether general law
or chartered, special district, school district, joint powers entity
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1, redevelopment agency, or any other municipal
corporation, district, or political subdivision of the state.
   (i) "Rate" means a single rate of tax or a schedule of rates.
   (j) "Services" means the provision of categories of services
identified in Section 53313. "Services" includes the performance by
employees of functions, operations, maintenance, and repair
activities. "Services" does not include activities or facilities
identified in Section 53313.5.


53317.3.  If property not otherwise exempt from a special tax levied
pursuant to this chapter is acquired by a public entity through a
negotiated transaction, or by gift or devise, the special tax shall,
notwithstanding Section 53340, continue to be levied on the property
acquired and shall be enforceable against the public entity that
acquired the property. However, even if the resolution of formation
that authorized creation of the district did not specify conditions
under which the obligation to pay a special tax may be prepaid and
permanently satisfied, the legislative body of the local agency that
created the district may specify conditions under which the public
agency that acquires the property may prepay and satisfy the
obligation to pay the tax. The conditions may be specified only if
the local agency that created the district finds and determines that
the prepayment arrangement will fully protect the interests of the
owners of the district's bonds.



53317.5.  If property subject to a special tax levied pursuant to
this chapter is acquired by a public entity through eminent domain
proceedings, the obligation to pay the special tax shall be treated,
pursuant to Section 1265.250 of the Code of Civil Procedure, as if it
were a special annual assessment. For this purpose, the present
value of the obligation to pay a special tax to pay the principal and
interest on any indebtedness incurred by the district prior to the
date of apportionment determined pursuant to Section 5082 of the
Revenue and Taxation Code shall be treated the same as a fixed lien
special assessment.

State Codes and Statutes

Statutes > California > Gov > 53311-53317.5

GOVERNMENT CODE
SECTION 53311-53317.5



53311.  This chapter shall be known and may be cited as the
"Mello-Roos Community Facilities Act of 1982".



53311.5.  This chapter provides an alternative method of financing
certain public capital facilities and services, especially in
developing areas and areas undergoing rehabilitation. The provisions
of this chapter shall not affect or limit any other provisions of law
authorizing or providing for the furnishing of governmental
facilities or services or the raising of revenue for these purposes.
A local government may use the provisions of this chapter instead of
any other method of financing part or all of the cost of providing
the authorized kinds of capital facilities and services.



53312.  Any provision in this chapter which conflicts with any other
provision of law shall prevail over the other provision of law.



53312.5.  The local agency may take any actions or make any
determinations which it determines are necessary or convenient to
carry out the purposes of this chapter and which are not otherwise
prohibited by law.


53312.7.  (a) On and after January 1, 1994, a local agency may
initiate proceedings to establish a district pursuant to this chapter
only if it has first considered and adopted local goals and policies
concerning the use of this chapter. The policies shall include at
least the following:
   (1) A statement of the priority that various kinds of public
facilities and services shall have for financing through the use of
this chapter, including public facilities to be owned and operated by
other public agencies, including school districts, and services to
be provided by other public agencies.
   (2) A statement concerning the credit quality to be required of
bond issues, including criteria to be used in evaluating the credit
quality.
   (3) A statement concerning steps to be taken to ensure that
prospective property purchasers are fully informed about their
taxpaying obligations imposed under this chapter.
   (4) A statement concerning criteria for evaluating the equity of
tax allocation formulas, and concerning desirable and maximum amounts
of special tax to be levied against any parcel pursuant to this
chapter.
   (5) A statement of definitions, standards, and assumptions to be
used in appraisals required by Section 53345.8.
   (b) The goals and policies adopted by any school district pursuant
to subdivision (a) shall include, but not be limited to, a priority
access policy that gives priority attendance access to students
residing in a community facilities district whose residents have paid
special taxes that have, in whole or in part, financed the
construction of school district facilities. The degree of priority
shall reflect the proportion of each school's financing provided
through the community facilities district. In developing a priority
access policy for residents of a community facilities district, a
school district may incorporate a school district attendance policy
including criteria for student assignment such as goals to achieve
ethnic, racial, or socioeconomic diversity; federal, state, or court
mandates; transportation needs, safe pedestrian routes; grade levels
for which facilities were designed; and ensuring students continuity
of schooling within any single school year.



53312.8.  (a) Territory that is dedicated or restricted to
agricultural, open-space, or conservation uses may not be included
within or annexed to a community facilities district that provides or
would provide facilities or services related to sewers,
nonagricultural water, or streets and roads, unless the landowner
consents to the inclusion or annexation of that territory to the
community facilities district.
   (b) Notwithstanding any other provision of law, and except as
provided in subdivision (c), if a landowner consents to the inclusion
or annexation of territory in a community facilities district
pursuant to subdivision (a), the landowner and any local agency may
not terminate any easement or effect a final cancellation of any
contract with respect to any portion of the land included within or
annexed to the community facilities district prior to the release of
land that is the subject of the proposed termination or cancellation
from all liens that arise under the community facilities district for
any sewers, nonagricultural water, or streets and roads that did not
benefit land uses allowed under the contract or easement.
   (c) Subdivision (b) shall not apply to any of the following:
   (1) Land under a contract entered into pursuant to the California
Land Conservation Act of 1965 (Chapter 7 (commencing with Section
51200) of Part 1 of Division 1) included in a community facilities
district for which a tentative map may be filed pursuant to paragraph
(3) of subdivision (d) of Section 66474.4 or for which a tentative
cancellation has been approved.
   (2) Land subject to a conservation easement entered into prior to
January 1, 2003.
   (3) Land included in a community facilities district prior to the
imposition of an enforceable restriction listed in subdivision (d) or
prior to January 1, 2003.
   (4) Land subject to an enforceable restriction listed in
subdivision (d) that expressly waives the requirement of subdivision
(b).
   (d) As used in this section, "territory that is dedicated or
restricted to agricultural, open-space, or conservation uses" means
territory that is subject to any of the following:
   (1) An open-space easement entered into pursuant to Chapter 6.5
(commencing with Section 51050) of Part 1 of Division 1.
   (2) An open-space easement entered into pursuant to the Open-Space
Easement Act of 1974 (Chapter 6.6 (commencing with Section 51070) of
Part 1 of Division 1).
   (3) A contract entered into pursuant to the California Land
Conservation Act of 1965 (Chapter 7 (commencing with Section 51200)
of Part 1 of Division 1).
   (4) A farmland security zone contract created pursuant to Article
7 (commencing with Section 51296) of Chapter 7 of Part 1 of Division
1), except as otherwise provided in Section 51296.4.
   (5) A conservation easement entered into pursuant to Chapter 4
(commencing with Section 815) of Title 2 of Part 2 of Division 2 of
the Civil Code.
   (6) An agricultural conservation easement entered into pursuant to
Chapter 4 (commencing with Section 10260) of Division 10.2 of the
Public Resources Code.
   (7) An agricultural conservation easement entered into pursuant to
Section 51256.


53313.  A community facilities district may be established under
this chapter to finance any one or more of the following types of
services within an area:
   (a) Police protection services, including, but not limited to,
criminal justice services. However, criminal justice services shall
be limited to providing services for jails, detention facilities, and
juvenile halls.
   (b) Fire protection and suppression services, and ambulance and
paramedic services.
   (c) Recreation program services, library services, maintenance
services for elementary and secondary schoolsites and structures, and
the operation and maintenance of museums and cultural facilities. A
special tax may be levied for any of the services specified in this
subdivision only upon approval of the registered voters as specified
in subdivision (b) of Section 53326. An election to enact a special
tax for recreation program services, library services, and the
operation and maintenance of museums and cultural facilities may be
conducted pursuant to subdivision (c) of Section 53326.
   (d) Maintenance and lighting of parks, parkways, streets, roads,
and open space.
   (e) Flood and storm protection services, including, but not
limited to, the operation and maintenance of storm drainage systems,
plowing and removal of snow, and sandstorm protection systems.
   (f) Services with respect to removal or remedial action for the
cleanup of any hazardous substance released or threatened to be
released into the environment. As used in this subdivision, the terms
"remedial action" and "removal" shall have the meanings set forth in
Sections 25322 and 25323, respectively, of the Health and Safety
Code, and the term "hazardous substance" shall have the meaning set
forth in Section 25281 of the Health and Safety Code. Community
facilities districts shall provide the State Department of Health
Services and local health and building departments with notification
of any cleanup activity pursuant to this subdivision at least 30 days
prior to commencement of the activity.
   A community facilities district tax approved by vote of the
landowners of the district may only finance the services authorized
in this section to the extent that they are in addition to those
provided in the territory of the district before the district was
created. The additional services may not supplant services already
available within that territory when the district was created.
   Bonds may not be issued pursuant to this chapter to fund any of
the services specified in this section, although bonds may be issued
to fund capital facilities to be used in providing these services.




53313.1.  To the extent that any capital facility is provided under
this chapter, a duplicate levy, impact fee, or other exaction may not
be required for the same purpose under Section 66477.



53313.4.  Any territory within a community facilities district
established for the acquisition or improvement of school facilities
for a school district shall be exempt from any fee, increase in any
fee other than a cost-of-living increase as authorized by law, or
other requirement first levied, increased, or imposed pursuant to
Chapter 6 (commencing with Section 17620) of Part 10.5 of Division 1
of Title 1 of the Education Code or under Chapter 4.7 (commencing
with Section 65970) of Division 1 of Title 7, by or to benefit any
other school district, except as otherwise negotiated between the
school districts. That exemption shall apply until a date 10 years
following the most recent issuance of bonds by the community
facilities district or, if no bonds have ever been issued by the
community facilities district, a date 10 years following the
formation of the community facilities district.



53313.5.  A community facilities district may also finance the
purchase, construction, expansion, improvement, or rehabilitation of
any real or other tangible property with an estimated useful life of
five years or longer or may finance planning and design work that is
directly related to the purchase, construction, expansion, or
rehabilitation of any real or tangible property. The facilities need
not be physically located within the district. A district may not
lease out facilities that it has financed except pursuant to a lease
agreement or annexation agreement entered into prior to January 1,
1988. A district may only finance the purchase of facilities whose
construction has been completed, as determined by the legislative
body, before the resolution of formation to establish the district is
adopted pursuant to Section 53325.1, except that a district may
finance the purchase of facilities completed after the adoption of
the resolution of formation if the facility was constructed as if it
had been constructed under the direction and supervision, or under
the authority of, the local agency that will own or operate the
facility. For example, a community facilities district may finance
facilities, including, but not limited to, the following:
   (a) Local park, recreation, parkway, and open-space facilities.
   (b) Elementary and secondary schoolsites and structures provided
that the facilities meet the building area and cost standards
established by the State Allocation Board.
   (c) Libraries.
   (d) Child care facilities, including costs of insuring the
facilities against loss, liability insurance in connection with the
operation of the facility, and other insurance costs relating to the
operation of the facilities, but excluding all other operational
costs. However, the proceeds of bonds issued pursuant to this chapter
shall not be used to pay these insurance costs.
   (e) The district may also finance the construction or
undergrounding of water transmission and distribution facilities,
natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable
television lines to provide access to those services to customers who
do not have access to those services or to mitigate existing visual
blight. The district may enter into an agreement with a public
utility to utilize those facilities to provide a particular service
and for the conveyance of those facilities to the public utility.
"Public utility" shall include all utilities, whether public and
regulated by the Public Utilities Commission, or municipal. If the
facilities are conveyed to the public utility, the agreement shall
provide that the cost or a portion of the cost of the facilities that
are the responsibility of the utility shall be refunded by the
public utility to the district or improvement area thereof, to the
extent that refunds are applicable pursuant to (1) the Public
Utilities Code or rules of the Public Utilities Commission, as to
utilities regulated by the commission, or (2) other laws regulating
public utilities. Any reimbursement made to the district shall be
utilized to reduce or minimize the special tax levied within the
district or improvement area, or to construct or acquire additional
facilities within the district or improvement area, as specified in
the resolution of formation.
   (f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage
and treatment systems and sandstorm protection systems.
   (g) The district may also pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or
defease any obligation to pay or any indebtedness secured by any tax,
fee, charge, or assessment levied within the area of a community
facilities district or may pay debt service on that indebtedness.
When the amount financed by the district is to pay a tax, fee,
charge, or assessment imposed by a public agency other than the one
conducting the proceedings, and if the amount provided to the other
public agency will not be entirely used to pay off or prepay an
assessment lien or special tax obligation pursuant to the property
owner's legal right to do so, the written consent of the other public
agency is required. In addition, tax revenues of a district may be
used to make lease or debt service payments on any lease,
lease-purchase contract, or certificate of participation used to
finance authorized district facilities.
   (h) Any other governmental facilities that the legislative body
creating the community facilities district is authorized by law to
contribute revenue to, or construct, own, or operate. However, the
district shall not operate or maintain or, except as otherwise
provided in subdivisions (e) and (k), have any ownership interest in
any facilities for the transmission or distribution of natural gas,
telephone service, or electrical energy.
   (i) (1) A district may also pay for the following:
   (A) Work deemed necessary to bring buildings or real property,
including privately owned buildings or real property, into compliance
with seismic safety standards or regulations. Only work certified as
necessary to comply with seismic safety standards or regulations by
local building officials may be financed. No project involving the
dismantling of an existing building and its replacement by a new
building, nor the construction of a new or substantially new building
may be financed pursuant to this subparagraph. Work on qualified
historical buildings or structures shall be done in accordance with
the State Historical Building Code (Part 2.7 (commencing with Section
18950) of Division 13 of the Health and Safety Code).
   (B) In addition, within any county or area designated by the
President of the United States or by the Governor as a disaster area
or for which the Governor has proclaimed the existence of a state of
emergency because of earthquake damage, a district may also pay for
any work deemed necessary to repair any damage to real property
directly or indirectly caused by the occurrence of an earthquake
cited in the President's or the Governor's designation or
proclamation, or by aftershocks associated with that earthquake,
including work to reconstruct, repair, shore up, or replace any
building damaged or destroyed by the earthquake, and specifically
including, but not limited to, work on any building damaged or
destroyed in the Loma Prieta earthquake that occurred on October 17,
1989, or by its aftershocks. Work may be financed pursuant to this
subparagraph only on property or buildings identified in a resolution
of intention to establish a community facilities district adopted
within seven years of the date on which the county or area is
designated as a disaster area by the President or by the Governor or
on which the Governor proclaims for the area the existence of a state
of emergency.
   (2) Work on privately owned property, including reconstruction or
replacement of privately owned buildings pursuant to subparagraph (B)
of paragraph (1), may only be financed by a tax levy if all of the
votes cast on the question of levying the tax, vote in favor of
levying the tax, or with the prior written consent to the tax of the
owners of all property that may be subject to the tax, in that case
the prior written consent shall be deemed to constitute a vote in
favor of the tax and any associated bond issue. Any district created
to finance seismic safety work on privately owned buildings,
including repair, reconstruction, or replacement of privately owned
buildings pursuant to this subdivision, shall consist only of lots or
parcels that the legislative body finds have buildings that were
damaged or destroyed by the earthquake cited pursuant to subparagraph
(B) of paragraph (1) or by the aftershocks of that earthquake.
   (j) A district may also pay for the following:
   (1) Work deemed necessary to repair and abate damage caused to
privately owned buildings and structures by soil deterioration. "Soil
deterioration" means a chemical reaction by soils that causes
structural damage or defects in construction materials including
concrete, steel, and ductile or cast iron. Only work certified as
necessary by local building officials may be financed. No project
involving the dismantling of an existing building or structure and
its replacement by a new building or structure, nor the construction
of a new or substantially new building or structure may be financed
pursuant to this subparagraph.
   (2) Work on privately owned buildings and structures pursuant to
this subdivision, including reconstruction, repair, and abatement of
damage caused by soil deterioration, may only be financed by a tax
levy if all of the votes cast on the question of levying the tax vote
in favor of levying the tax. Any district created to finance the
work on privately owned buildings or structures, including
reconstruction, repair, and abatement of damage caused by soil
deterioration, shall consist only of lots or parcels on which the
legislative body finds that the buildings or structures to be worked
on pursuant to this subdivision suffer from soil deterioration.
   (k) A district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for the purposes of
removal or remedial action for the cleanup of any hazardous substance
released or threatened to be released into the environment. As used
in this subdivision, the terms "remedial action" and "removal" shall
have the meaning set forth in Sections 25322 and 25323, respectively,
of the Health and Safety Code, and the term "hazardous substance"
shall have the meaning set forth in Section 25281 of the Health and
Safety Code.


53313.51.  The legislative body may enter into an agreement for the
construction of discrete portions or phases of facilities to be
constructed and purchased consistent with Section 53313.5. The
agreement may include any provisions that the legislative body
determines are necessary or convenient, but shall do all of the
following:
   (a) Identify the specific facilities or discrete portions or
phases of facilities to be constructed and purchased. The legislative
body may agree to purchase discrete portions or phases of facilities
if the portions or phases are capable of serviceable use as
determined by the legislative body.
   (b) Notwithstanding subdivision (a), when the purchase value of a
facility exceeds one million dollars ($1,000,000), the legislative
body may agree to purchase discrete portions or phases of the
partially completed project.
   (c) Identify procedures to ensure that the facilities are
constructed pursuant to plans, standards, specifications, and other
requirements as determined by the legislative body.
   (d) Specify a price or a method to determine a price for each
facility or discrete portion or phase of a facility. The price may
include an amount reflecting the interim cost of financing cash
payments that must be made during construction of the project, at the
discretion of the legislative body.
   (e) Specify procedures for final inspection and approval of
facilities or discrete portions of facilities, for approval of
payment, and for acceptance and conveyance or dedication of the
facilities to the local agency.



53313.6.  The legislative body may provide for adjustments in ad
valorem property taxes pursuant to Section 53313.7 within a community
facilities district only after making both of the following findings
at the conclusion of the public hearing held pursuant to Article 2
(commencing with Section 53318):
   (a) That an ad valorem property tax is, or will be, levied on
property within a proposed community facilities district for the
exclusive purpose of making lease payments on an existing lease or
paying principal or interest on outstanding bonds or other existing
indebtedness, including state school building loans, incurred to
finance construction of capital facilities.
   (b) That capital facilities to be financed by the community
facilities district will provide the same services to the territory
of the community facilities district as were provided by the capital
facilities mentioned in subdivision (a).



53313.7.  (a) Upon making the findings pursuant to Section 53313.6,
the legislative body may, with the concurrence of the legislative
body which levied the property tax described in subdivision (a) of
Section 53313.6, by ordinance, determine that the total annual amount
of ad valorem property tax revenue due from parcels within the
proposed community facilities district, for purposes of paying
principal and interest on the debt identified in Section 53313.6,
shall not be increased after the date on which the resolution of
formation for the community facilities district is adopted, or after
a later date determined by the legislative body creating the
community facilities district with the concurrence of the legislative
body which levied the property tax in question.
   (b) The legislative body may, by ordinance, with the concurrence
of the legislative body that levied the property tax described in
subdivision (a) of Section 53313.6, determine to cease and eliminate
the freeze on property tax revenue established pursuant to
subdivision (a), upon determining that the community facilities
district's special tax or portion thereof levied on the parcels in
question to pay for the capital facilities specified in subdivision
(b) of Section 53313.6 shall cease to be levied and collected.




53313.9.  (a) All or any part of the cost of any school facilities
financed by a community facilities district may be shared by the
State Allocation Board pursuant to Section 17718.5 of the Education
Code.
   (b) If the State Allocation Board shares in any part of the cost
of the school facilities, the ownership of those facilities and the
real property upon which the facilities are located shall be held as
provided in the Leroy F. Greene School Facilities Act of 1998
(Chapter 12.5 (commencing with Section 17070.10) of Part 10 of
Division 1 of the Education Code).
   (c) The resolutions of intention, formation, consideration, and to
incur bonded indebtedness, adopted pursuant to subdivision (b) of
Section 53338 or Sections 53321, 53325.1, 53334, 53339.2, 53345, and
53351 may provide for cost sharing by the State Allocation Board and
for appropriate adjustment of the principal amount of any bond issue
or issues and of the rate and method of apportionment of any special
tax.



53314.  The legislative body may from time to time transfer moneys
to a community facilities district or to an improvement area within a
community facilities district, for the benefit of the district or
improvement area, from any funds available to the legislative body.
Any moneys so transferred may be used for the payment of any
currently payable expenses incurred by reason of the construction or
acquisition of any facilities or provision of any authorized services
within the district or improvement area prior to December 1 of the
first fiscal year in which a special tax may be levied for the
facilities or services within the district or improvement area. The
rate of interest earned by the investment of those moneys shall be
determined by the legislative body.



53314.3.  In the first fiscal year in which a special tax or charge
is levied for any facility or for any services in a community
facilities district or a zone within a community facilities district,
the legislative body shall include in the levy a sum sufficient to
repay to the legislative body the amounts transferred to that
district or zone pursuant to Section 53314. The amounts borrowed,
with interest, shall be retransferred to the proper fund or funds
from the first available receipts from the special levy in that
district or zone.
   Notwithstanding the above provisions, the legislative body may, by
a resolution adopted no later than the time of the first levy,
extend the repayment of the transferred funds over a period of time
not to exceed three consecutive years, in which event the levy and
each subsequent levy shall include a sum sufficient to repay the
amount specified by the legislative body for the year of the levy.



53314.5.  Pursuant to a resolution adopted by the legislative body,
the legislative body may appropriate any of its available moneys to a
revolving fund to be used for the acquisition of real or personal
property, engineering services, or the construction of structures or
improvements needed in whole or in part to provide one or more of the
facilities of a community facilities district. The revolving fund
shall be reimbursed from tax revenues or other moneys available from
the facilities district, and no sums shall be disbursed from the fund
until the legislative body has, by resolution, established the
method by, and term not exceeding five years within, which the
community facilities district is to reimburse the fund. The district
shall reimburse the fund for any amount disbursed to the area within
five years after such disbursement, together with interest at the
current rate per annum received on similar types of investments by
the legislative body as determined by the local agency's treasurer.



53314.6.  (a) In connection with the financing of services and
facilities pursuant to subdivision (f) of Section 53313 and
subdivision (k) of Section 53313.5, the legislative body may
establish a revolving fund to be kept in the treasury of the
district. Except as provided in subdivision (b), moneys in the
revolving fund shall be expended solely for the payment of costs with
respect to those services and facilities. The revolving fund may be
funded from time to time with moneys derived from any of the
following:
   (1) Proceeds of the sale of bonds issued pursuant to Article 5
(commencing with Section 53345), notwithstanding any limitation
contained in Section 53345.3.
   (2) Any taxes or charges authorized under this chapter.
   (3) Any other lawful source.
   (b) Subject to the provisions of any resolution, trust agreement
or indenture providing for the issuance of district bonds for the
purposes set forth in subdivision (k) of Section 53313.5, the
legislative body may withdraw money from the revolving fund whenever
and to the extent that it finds that the amount of money therein
exceeds the amount necessary to accomplish the purposes for which the
revolving fund was established. Any moneys withdrawn from the
revolving fund shall be used to redeem bonds of the district issued
for the purposes set forth in subdivision (k) of Section 53313.5 or
shall be paid to taxpayers in the district in amounts that the
legislative body determines.



53314.7.  (a)  Any responsible party as defined by subdivision (a)
of Section 25323.5 of the Health and Safety Code shall be liable to
the district for the costs incurred in the removal or remedial action
for the cleanup of any hazardous substance released or threatened to
be released into the environment. The amount of the costs shall
include interest on the costs accrued from the date of expenditure.
The interest shall be calculated based on the average annual rate of
return on the district's investment of surplus funds for the fiscal
year in which the district incurred the costs. Recovery of costs by a
community facilities district under this section shall be commenced
before or immediately upon completion of the removal or remedial
action, and payments received hereunder by the district shall be
deposited in the revolving fund in accordance with Section 53314.6.
   (b) To expedite cleanup, this section is intended to provide local
jurisdictions an alternative method of financing the cost of removal
or remedial action for the cleanup of any hazardous substance
through the issuance of voter-approved limited obligation bonds. The
provisions of this section shall not affect or limit the provisions
of any other law establishing the liability of any person for, or
otherwise regulating, the generation, transportation, storage,
treatment, or disposal of hazardous substances. The scope and
standard of liability for any costs recoverable pursuant to Section
53314.7 shall be the scope and standard of liability set forth in the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended (42 U.S.C. Sec. 6901 et seq.), or any other
provision of state or federal law establishing responsibility for
cleanup of hazardous waste sites.



53314.8.  At any time either before or after the formation of the
district, the legislative body may provide, by ordinance, that for a
period specified in the ordinance, the local agency may contribute,
from any source of revenue not otherwise prohibited by law, any
specified amount, portion, or percentage of the revenues for the
purposes set forth in the ordinance, limited to the following: the
acquisition or construction of a facility, the acquisition of
interest in real property, or the payment of debt service with
respect to the financing of either, the provision of authorized
services, and the payment of expenses incidental thereto. The
contribution shall not constitute an indebtedness or liability of the
local agency.



53314.9.  (a) Notwithstanding Section 53313.5, at any time either
before or after the formation of the district, the legislative body
may accept advances of funds or work in-kind from any source,
including, but not limited to, private persons or private entities
and may provide, by resolution, for the use of those funds or that
work in-kind for any authorized purpose, including, but not limited
to, paying any cost incurred by the local agency in creating a
district. The legislative body may enter into an agreement, by
resolution, with the person or entity advancing the funds or work
in-kind, to repay all or a portion of the funds advanced, or to
reimburse the person or entity for the value, or cost, whichever is
less, of the work in-kind, as determined by the legislative body,
with or without interest, under all of the following conditions:
   (1) The proposal to repay the funds or the value or cost of the
work in-kind, whichever is less, is included both in the resolution
of intention to establish a district adopted pursuant to Section
53321 and in the resolution of formation to establish the district
adopted pursuant to Section 53325.1, or in the resolution of
consideration to alter the types of public facilities and services
provided within an established district adopted pursuant to Section
53334.
   (2) Any proposed special tax or change in a special tax is
approved by the qualified electors of the district pursuant to this
chapter. Any agreement shall specify that if the qualified electors
of the district do not approve the proposed special tax or change in
a special tax, the local agency shall return any funds which have not
been committed for any authorized purpose by the time of the
election to the person or entity advancing the funds.
   (3) Any work in-kind accepted pursuant to this section shall have
been performed or constructed as if the work had been performed or
constructed under the direction and supervision, or under the
authority of, the local agency.
   (b) The agreement shall not constitute a debt or liability of the
local agency.



53315.  This chapter shall be liberally construed in order to
effectuate its purposes. No error, irregularity, informality, and no
neglect or omission of any officer, in any procedure taken under this
chapter, which does not directly affect the jurisdiction of the
legislative body to order the installation of the facility or the
provision of service, shall void or invalidate such proceeding or any
levy for the costs of such facility or service.



53315.3.  The failure of any person to receive a notice, resolution,
order, or other matter shall not affect in any way whatsoever the
validity of any proceedings taken under this chapter, or prevent the
legislative body from proceeding with any hearing so noticed.



53315.6.  When any proceeding is initiated under this chapter by a
legislative body other than that of a city or county, a copy of the
resolution of intention shall be transmitted to the legislative body
of the city, where the land to be assessed lies within the corporate
limits of any city, or of the county, where the land to be assessed
lies within an unincorporated territory.



53315.8.  A county may not form a district within the territorial
jurisdiction of a city without the consent of the legislative body of
the city.


53316.  This chapter applies to all local agencies insofar as those
entities have the power to install or contribute revenue for any of
the facilities or provide or contribute revenue for any of the
services authorized under this chapter. This chapter authorizes local
agencies to create community facilities districts pursuant to this
chapter within their territorial limits. A local agency may initiate
proceedings pursuant to Section 53318 to include territory proposed
for annexation to the local agency within a community facilities
district if a petition or resolution of application for the
annexation of the territory to the local agency has been accepted for
filing and a certificate of filing has been issued by the executive
officer of the local agency formation commission at the time the
proceedings to create the district are initiated. Those proceedings
may be completed only if the annexation of the territory to the local
agency is completed. The officers of local agencies who have similar
powers and duties, as determined by the legislative body of the
local agency, as the municipal officers referred to in this chapter
shall have the powers and duties given by this chapter to the
municipal officials. Where no similar officer exists, the legislative
body of the local agency shall, by resolution, appoint a person or
designate an officer to perform the duties under this chapter. Any
local agency that has no authority to enact an ordinance under other
laws may, for purposes of this chapter, enact an ordinance in
substantially the same manner as provided for the enactment of a city
ordinance in Chapter 2 (commencing with Section 36900) of Part 2 of
Division 3 of Title 4.



53316.2.  (a) A community facilities district may finance facilities
to be owned or operated by a public agency other than the agency
that created the district, or services to be provided by a public
agency other than the agency that created the district, or any
combination, only pursuant to a joint community facilities agreement
or a joint exercise of powers agreement adopted pursuant to this
section. A joint community facilities agreement or a joint exercise
of powers agreement with a state or federal agency shall not be
required if the local agency that created the district is the agency
that would, in the absence of the district, enter into an agreement
with the state or federal agency for the provision of the facilities
or services, or if the local agency that created the district enters
into a joint agreement with the public agency that would, in the
absence of the district, enter into an agreement with the state or
federal agency for the provision of the facilities or services.
   (b) At any time prior to the adoption of the resolution of
formation creating a community facilities district or a resolution of
change to alter a district, or a resolution or resolutions
authorizing issuance of bonds pursuant to Section 53356, the
legislative bodies of two or more local agencies may enter into a
joint community facilities agreement pursuant to this section and
Sections 53316.4 and 53316.6 or into a joint exercise of powers
agreement pursuant to the Joint Exercise of Powers Act (Chapter 5
(commencing with Section 6500) of Division 7 of Title 1) to exercise
any power authorized by this chapter with respect to the community
facilities district being created or changed if the legislative body
of each entity adopts a resolution declaring that the joint agreement
would be beneficial to the residents of that entity.
   (c) Notwithstanding the Joint Exercise of Powers Act, a
contracting party may use the proceeds of any special tax or charge
levied pursuant to this chapter or, in the case of facilities, of any
bonds or other indebtedness issued pursuant to this chapter to
provide facilities or services which that contracting party is
otherwise authorized by law to provide, even though another
contracting party does not have the power to provide those facilities
or services.
   (d) Notwithstanding subdivision (b), nothing in this section shall
prevent entry into or amendment of a joint community facilities
agreement or a joint exercise of powers agreement at any time, if the
new agreement or amendment is necessary, as determined by the
legislative body, for either of the following reasons:
   (1) To allow an orderly transition of governmental facilities and
finances in the case of any change in governmental organization
approved pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5) or other law governing the reorganization of any
agency that is a party to the agreement.
   (2) To allow participation in the agreement by a state or federal
agency, including, but not limited to, the California Department of
Transportation. Participation in an agreement by a state or federal
agency is purely optional.
   (e) Notwithstanding any other provision of this chapter, no local
agency that is party to a joint exercise of powers agreement or joint
community facilities agreement shall have primary responsibility for
formation of a district, or for an extension of authorized
facilities and services or a change in special taxes pursuant to
Article 3 (commencing with Section 53330), unless that local agency
is one or more of the following:
   (1) A city, a county, or a city and county.
   (2) An agency created pursuant to a joint powers agreement that is
separate from the parties to the agreement, is responsible for the
administration of the agreement, and is subject to the notification
requirement of Section 6503.5.
   (3) An agency that is reasonably expected to have responsibility
for providing facilities or services to be financed by a larger share
of the proceeds of special taxes and bonds of the district or
districts created or changed pursuant to the joint exercise of powers
agreement or the joint community facilities agreement than any other
local agency.


53316.4.  The agreement entered into pursuant to Section 53316.2
shall contain a description of the facilities and services to be
provided under the agreement, and any real or tangible property which
is to be purchased, constructed, expanded, or rehabilitated.




53316.6.  The agreement entered into pursuant to Section 53316.2 may
provide for the division of responsibility to provide any of the
facilities or services among the entities entering into the
agreement. The agreement shall provide for the allocation and
distribution of the proceeds of any special tax levy among the
parties to the agreement.



53317.  Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.
   (a) "Clerk" means the clerk of the legislative body of a local
agency.
   (b) "Community facilities district" means a legally constituted
governmental entity established pursuant to this chapter for the sole
purpose of financing facilities and services.
   (c) "Cost" means the expense of constructing or purchasing the
public facility and of related land, right-of-way, easements,
including incidental expenses, and the cost of providing authorized
services, including incidental expenses.
   (d) "Debt" means any binding obligation to pay or repay a sum of
money, including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals, or long-term contracts.
   (e) "Incidental expense" includes all of the following:
   (1) The cost of planning and designing public facilities to be
financed pursuant to this chapter, including the cost of
environmental evaluations of those facilities.
   (2) The costs associated with the creation of the district,
issuance of bonds, determination of the amount of taxes, collection
of taxes, payment of taxes, or costs otherwise incurred in order to
carry out the authorized purposes of the district.
   (3) Any other expenses incidental to the construction, completion,
and inspection of the authorized work.
   (f) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body. The
legislative body has no obligation to obtain other information as to
the ownership of the land, and its determination of ownership shall
be final and conclusive for the purposes of this chapter. A public
agency is not a landowner or owner of land for purposes of this
chapter, unless one of the following exists:
   (1) The land owned by a public agency would be subject to a
special tax pursuant to Section 53340.1.
   (2) The public agency has acquired the property by purchase or
negotiation in connection with foreclosure of a special tax lien and
it is intended that the property will be transferred to private
ownership.
   (3) The public agency states in the proceedings that its land is
intended to be transferred to private ownership and provides in the
proceedings that its land will be subject to the special tax on the
same basis as private property within the district and affirmatively
waives any defense based on the fact of public ownership, to any
action to foreclose on the property in the event of nonpayment of the
special tax.
   (4) The land owned by a public agency is within the territory of a
military base that is closed or is being closed.
   (g) "Legislative body" means the legislative body or governing
board of any local agency.
   (h) "Local agency" means any city or county, whether general law
or chartered, special district, school district, joint powers entity
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1, redevelopment agency, or any other municipal
corporation, district, or political subdivision of the state.
   (i) "Rate" means a single rate of tax or a schedule of rates.
   (j) "Services" means the provision of categories of services
identified in Section 53313. "Services" includes the performance by
employees of functions, operations, maintenance, and repair
activities. "Services" does not include activities or facilities
identified in Section 53313.5.


53317.3.  If property not otherwise exempt from a special tax levied
pursuant to this chapter is acquired by a public entity through a
negotiated transaction, or by gift or devise, the special tax shall,
notwithstanding Section 53340, continue to be levied on the property
acquired and shall be enforceable against the public entity that
acquired the property. However, even if the resolution of formation
that authorized creation of the district did not specify conditions
under which the obligation to pay a special tax may be prepaid and
permanently satisfied, the legislative body of the local agency that
created the district may specify conditions under which the public
agency that acquires the property may prepay and satisfy the
obligation to pay the tax. The conditions may be specified only if
the local agency that created the district finds and determines that
the prepayment arrangement will fully protect the interests of the
owners of the district's bonds.



53317.5.  If property subject to a special tax levied pursuant to
this chapter is acquired by a public entity through eminent domain
proceedings, the obligation to pay the special tax shall be treated,
pursuant to Section 1265.250 of the Code of Civil Procedure, as if it
were a special annual assessment. For this purpose, the present
value of the obligation to pay a special tax to pay the principal and
interest on any indebtedness incurred by the district prior to the
date of apportionment determined pursuant to Section 5082 of the
Revenue and Taxation Code shall be treated the same as a fixed lien
special assessment.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Gov > 53311-53317.5

GOVERNMENT CODE
SECTION 53311-53317.5



53311.  This chapter shall be known and may be cited as the
"Mello-Roos Community Facilities Act of 1982".



53311.5.  This chapter provides an alternative method of financing
certain public capital facilities and services, especially in
developing areas and areas undergoing rehabilitation. The provisions
of this chapter shall not affect or limit any other provisions of law
authorizing or providing for the furnishing of governmental
facilities or services or the raising of revenue for these purposes.
A local government may use the provisions of this chapter instead of
any other method of financing part or all of the cost of providing
the authorized kinds of capital facilities and services.



53312.  Any provision in this chapter which conflicts with any other
provision of law shall prevail over the other provision of law.



53312.5.  The local agency may take any actions or make any
determinations which it determines are necessary or convenient to
carry out the purposes of this chapter and which are not otherwise
prohibited by law.


53312.7.  (a) On and after January 1, 1994, a local agency may
initiate proceedings to establish a district pursuant to this chapter
only if it has first considered and adopted local goals and policies
concerning the use of this chapter. The policies shall include at
least the following:
   (1) A statement of the priority that various kinds of public
facilities and services shall have for financing through the use of
this chapter, including public facilities to be owned and operated by
other public agencies, including school districts, and services to
be provided by other public agencies.
   (2) A statement concerning the credit quality to be required of
bond issues, including criteria to be used in evaluating the credit
quality.
   (3) A statement concerning steps to be taken to ensure that
prospective property purchasers are fully informed about their
taxpaying obligations imposed under this chapter.
   (4) A statement concerning criteria for evaluating the equity of
tax allocation formulas, and concerning desirable and maximum amounts
of special tax to be levied against any parcel pursuant to this
chapter.
   (5) A statement of definitions, standards, and assumptions to be
used in appraisals required by Section 53345.8.
   (b) The goals and policies adopted by any school district pursuant
to subdivision (a) shall include, but not be limited to, a priority
access policy that gives priority attendance access to students
residing in a community facilities district whose residents have paid
special taxes that have, in whole or in part, financed the
construction of school district facilities. The degree of priority
shall reflect the proportion of each school's financing provided
through the community facilities district. In developing a priority
access policy for residents of a community facilities district, a
school district may incorporate a school district attendance policy
including criteria for student assignment such as goals to achieve
ethnic, racial, or socioeconomic diversity; federal, state, or court
mandates; transportation needs, safe pedestrian routes; grade levels
for which facilities were designed; and ensuring students continuity
of schooling within any single school year.



53312.8.  (a) Territory that is dedicated or restricted to
agricultural, open-space, or conservation uses may not be included
within or annexed to a community facilities district that provides or
would provide facilities or services related to sewers,
nonagricultural water, or streets and roads, unless the landowner
consents to the inclusion or annexation of that territory to the
community facilities district.
   (b) Notwithstanding any other provision of law, and except as
provided in subdivision (c), if a landowner consents to the inclusion
or annexation of territory in a community facilities district
pursuant to subdivision (a), the landowner and any local agency may
not terminate any easement or effect a final cancellation of any
contract with respect to any portion of the land included within or
annexed to the community facilities district prior to the release of
land that is the subject of the proposed termination or cancellation
from all liens that arise under the community facilities district for
any sewers, nonagricultural water, or streets and roads that did not
benefit land uses allowed under the contract or easement.
   (c) Subdivision (b) shall not apply to any of the following:
   (1) Land under a contract entered into pursuant to the California
Land Conservation Act of 1965 (Chapter 7 (commencing with Section
51200) of Part 1 of Division 1) included in a community facilities
district for which a tentative map may be filed pursuant to paragraph
(3) of subdivision (d) of Section 66474.4 or for which a tentative
cancellation has been approved.
   (2) Land subject to a conservation easement entered into prior to
January 1, 2003.
   (3) Land included in a community facilities district prior to the
imposition of an enforceable restriction listed in subdivision (d) or
prior to January 1, 2003.
   (4) Land subject to an enforceable restriction listed in
subdivision (d) that expressly waives the requirement of subdivision
(b).
   (d) As used in this section, "territory that is dedicated or
restricted to agricultural, open-space, or conservation uses" means
territory that is subject to any of the following:
   (1) An open-space easement entered into pursuant to Chapter 6.5
(commencing with Section 51050) of Part 1 of Division 1.
   (2) An open-space easement entered into pursuant to the Open-Space
Easement Act of 1974 (Chapter 6.6 (commencing with Section 51070) of
Part 1 of Division 1).
   (3) A contract entered into pursuant to the California Land
Conservation Act of 1965 (Chapter 7 (commencing with Section 51200)
of Part 1 of Division 1).
   (4) A farmland security zone contract created pursuant to Article
7 (commencing with Section 51296) of Chapter 7 of Part 1 of Division
1), except as otherwise provided in Section 51296.4.
   (5) A conservation easement entered into pursuant to Chapter 4
(commencing with Section 815) of Title 2 of Part 2 of Division 2 of
the Civil Code.
   (6) An agricultural conservation easement entered into pursuant to
Chapter 4 (commencing with Section 10260) of Division 10.2 of the
Public Resources Code.
   (7) An agricultural conservation easement entered into pursuant to
Section 51256.


53313.  A community facilities district may be established under
this chapter to finance any one or more of the following types of
services within an area:
   (a) Police protection services, including, but not limited to,
criminal justice services. However, criminal justice services shall
be limited to providing services for jails, detention facilities, and
juvenile halls.
   (b) Fire protection and suppression services, and ambulance and
paramedic services.
   (c) Recreation program services, library services, maintenance
services for elementary and secondary schoolsites and structures, and
the operation and maintenance of museums and cultural facilities. A
special tax may be levied for any of the services specified in this
subdivision only upon approval of the registered voters as specified
in subdivision (b) of Section 53326. An election to enact a special
tax for recreation program services, library services, and the
operation and maintenance of museums and cultural facilities may be
conducted pursuant to subdivision (c) of Section 53326.
   (d) Maintenance and lighting of parks, parkways, streets, roads,
and open space.
   (e) Flood and storm protection services, including, but not
limited to, the operation and maintenance of storm drainage systems,
plowing and removal of snow, and sandstorm protection systems.
   (f) Services with respect to removal or remedial action for the
cleanup of any hazardous substance released or threatened to be
released into the environment. As used in this subdivision, the terms
"remedial action" and "removal" shall have the meanings set forth in
Sections 25322 and 25323, respectively, of the Health and Safety
Code, and the term "hazardous substance" shall have the meaning set
forth in Section 25281 of the Health and Safety Code. Community
facilities districts shall provide the State Department of Health
Services and local health and building departments with notification
of any cleanup activity pursuant to this subdivision at least 30 days
prior to commencement of the activity.
   A community facilities district tax approved by vote of the
landowners of the district may only finance the services authorized
in this section to the extent that they are in addition to those
provided in the territory of the district before the district was
created. The additional services may not supplant services already
available within that territory when the district was created.
   Bonds may not be issued pursuant to this chapter to fund any of
the services specified in this section, although bonds may be issued
to fund capital facilities to be used in providing these services.




53313.1.  To the extent that any capital facility is provided under
this chapter, a duplicate levy, impact fee, or other exaction may not
be required for the same purpose under Section 66477.



53313.4.  Any territory within a community facilities district
established for the acquisition or improvement of school facilities
for a school district shall be exempt from any fee, increase in any
fee other than a cost-of-living increase as authorized by law, or
other requirement first levied, increased, or imposed pursuant to
Chapter 6 (commencing with Section 17620) of Part 10.5 of Division 1
of Title 1 of the Education Code or under Chapter 4.7 (commencing
with Section 65970) of Division 1 of Title 7, by or to benefit any
other school district, except as otherwise negotiated between the
school districts. That exemption shall apply until a date 10 years
following the most recent issuance of bonds by the community
facilities district or, if no bonds have ever been issued by the
community facilities district, a date 10 years following the
formation of the community facilities district.



53313.5.  A community facilities district may also finance the
purchase, construction, expansion, improvement, or rehabilitation of
any real or other tangible property with an estimated useful life of
five years or longer or may finance planning and design work that is
directly related to the purchase, construction, expansion, or
rehabilitation of any real or tangible property. The facilities need
not be physically located within the district. A district may not
lease out facilities that it has financed except pursuant to a lease
agreement or annexation agreement entered into prior to January 1,
1988. A district may only finance the purchase of facilities whose
construction has been completed, as determined by the legislative
body, before the resolution of formation to establish the district is
adopted pursuant to Section 53325.1, except that a district may
finance the purchase of facilities completed after the adoption of
the resolution of formation if the facility was constructed as if it
had been constructed under the direction and supervision, or under
the authority of, the local agency that will own or operate the
facility. For example, a community facilities district may finance
facilities, including, but not limited to, the following:
   (a) Local park, recreation, parkway, and open-space facilities.
   (b) Elementary and secondary schoolsites and structures provided
that the facilities meet the building area and cost standards
established by the State Allocation Board.
   (c) Libraries.
   (d) Child care facilities, including costs of insuring the
facilities against loss, liability insurance in connection with the
operation of the facility, and other insurance costs relating to the
operation of the facilities, but excluding all other operational
costs. However, the proceeds of bonds issued pursuant to this chapter
shall not be used to pay these insurance costs.
   (e) The district may also finance the construction or
undergrounding of water transmission and distribution facilities,
natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable
television lines to provide access to those services to customers who
do not have access to those services or to mitigate existing visual
blight. The district may enter into an agreement with a public
utility to utilize those facilities to provide a particular service
and for the conveyance of those facilities to the public utility.
"Public utility" shall include all utilities, whether public and
regulated by the Public Utilities Commission, or municipal. If the
facilities are conveyed to the public utility, the agreement shall
provide that the cost or a portion of the cost of the facilities that
are the responsibility of the utility shall be refunded by the
public utility to the district or improvement area thereof, to the
extent that refunds are applicable pursuant to (1) the Public
Utilities Code or rules of the Public Utilities Commission, as to
utilities regulated by the commission, or (2) other laws regulating
public utilities. Any reimbursement made to the district shall be
utilized to reduce or minimize the special tax levied within the
district or improvement area, or to construct or acquire additional
facilities within the district or improvement area, as specified in
the resolution of formation.
   (f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage
and treatment systems and sandstorm protection systems.
   (g) The district may also pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or
defease any obligation to pay or any indebtedness secured by any tax,
fee, charge, or assessment levied within the area of a community
facilities district or may pay debt service on that indebtedness.
When the amount financed by the district is to pay a tax, fee,
charge, or assessment imposed by a public agency other than the one
conducting the proceedings, and if the amount provided to the other
public agency will not be entirely used to pay off or prepay an
assessment lien or special tax obligation pursuant to the property
owner's legal right to do so, the written consent of the other public
agency is required. In addition, tax revenues of a district may be
used to make lease or debt service payments on any lease,
lease-purchase contract, or certificate of participation used to
finance authorized district facilities.
   (h) Any other governmental facilities that the legislative body
creating the community facilities district is authorized by law to
contribute revenue to, or construct, own, or operate. However, the
district shall not operate or maintain or, except as otherwise
provided in subdivisions (e) and (k), have any ownership interest in
any facilities for the transmission or distribution of natural gas,
telephone service, or electrical energy.
   (i) (1) A district may also pay for the following:
   (A) Work deemed necessary to bring buildings or real property,
including privately owned buildings or real property, into compliance
with seismic safety standards or regulations. Only work certified as
necessary to comply with seismic safety standards or regulations by
local building officials may be financed. No project involving the
dismantling of an existing building and its replacement by a new
building, nor the construction of a new or substantially new building
may be financed pursuant to this subparagraph. Work on qualified
historical buildings or structures shall be done in accordance with
the State Historical Building Code (Part 2.7 (commencing with Section
18950) of Division 13 of the Health and Safety Code).
   (B) In addition, within any county or area designated by the
President of the United States or by the Governor as a disaster area
or for which the Governor has proclaimed the existence of a state of
emergency because of earthquake damage, a district may also pay for
any work deemed necessary to repair any damage to real property
directly or indirectly caused by the occurrence of an earthquake
cited in the President's or the Governor's designation or
proclamation, or by aftershocks associated with that earthquake,
including work to reconstruct, repair, shore up, or replace any
building damaged or destroyed by the earthquake, and specifically
including, but not limited to, work on any building damaged or
destroyed in the Loma Prieta earthquake that occurred on October 17,
1989, or by its aftershocks. Work may be financed pursuant to this
subparagraph only on property or buildings identified in a resolution
of intention to establish a community facilities district adopted
within seven years of the date on which the county or area is
designated as a disaster area by the President or by the Governor or
on which the Governor proclaims for the area the existence of a state
of emergency.
   (2) Work on privately owned property, including reconstruction or
replacement of privately owned buildings pursuant to subparagraph (B)
of paragraph (1), may only be financed by a tax levy if all of the
votes cast on the question of levying the tax, vote in favor of
levying the tax, or with the prior written consent to the tax of the
owners of all property that may be subject to the tax, in that case
the prior written consent shall be deemed to constitute a vote in
favor of the tax and any associated bond issue. Any district created
to finance seismic safety work on privately owned buildings,
including repair, reconstruction, or replacement of privately owned
buildings pursuant to this subdivision, shall consist only of lots or
parcels that the legislative body finds have buildings that were
damaged or destroyed by the earthquake cited pursuant to subparagraph
(B) of paragraph (1) or by the aftershocks of that earthquake.
   (j) A district may also pay for the following:
   (1) Work deemed necessary to repair and abate damage caused to
privately owned buildings and structures by soil deterioration. "Soil
deterioration" means a chemical reaction by soils that causes
structural damage or defects in construction materials including
concrete, steel, and ductile or cast iron. Only work certified as
necessary by local building officials may be financed. No project
involving the dismantling of an existing building or structure and
its replacement by a new building or structure, nor the construction
of a new or substantially new building or structure may be financed
pursuant to this subparagraph.
   (2) Work on privately owned buildings and structures pursuant to
this subdivision, including reconstruction, repair, and abatement of
damage caused by soil deterioration, may only be financed by a tax
levy if all of the votes cast on the question of levying the tax vote
in favor of levying the tax. Any district created to finance the
work on privately owned buildings or structures, including
reconstruction, repair, and abatement of damage caused by soil
deterioration, shall consist only of lots or parcels on which the
legislative body finds that the buildings or structures to be worked
on pursuant to this subdivision suffer from soil deterioration.
   (k) A district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for the purposes of
removal or remedial action for the cleanup of any hazardous substance
released or threatened to be released into the environment. As used
in this subdivision, the terms "remedial action" and "removal" shall
have the meaning set forth in Sections 25322 and 25323, respectively,
of the Health and Safety Code, and the term "hazardous substance"
shall have the meaning set forth in Section 25281 of the Health and
Safety Code.


53313.51.  The legislative body may enter into an agreement for the
construction of discrete portions or phases of facilities to be
constructed and purchased consistent with Section 53313.5. The
agreement may include any provisions that the legislative body
determines are necessary or convenient, but shall do all of the
following:
   (a) Identify the specific facilities or discrete portions or
phases of facilities to be constructed and purchased. The legislative
body may agree to purchase discrete portions or phases of facilities
if the portions or phases are capable of serviceable use as
determined by the legislative body.
   (b) Notwithstanding subdivision (a), when the purchase value of a
facility exceeds one million dollars ($1,000,000), the legislative
body may agree to purchase discrete portions or phases of the
partially completed project.
   (c) Identify procedures to ensure that the facilities are
constructed pursuant to plans, standards, specifications, and other
requirements as determined by the legislative body.
   (d) Specify a price or a method to determine a price for each
facility or discrete portion or phase of a facility. The price may
include an amount reflecting the interim cost of financing cash
payments that must be made during construction of the project, at the
discretion of the legislative body.
   (e) Specify procedures for final inspection and approval of
facilities or discrete portions of facilities, for approval of
payment, and for acceptance and conveyance or dedication of the
facilities to the local agency.



53313.6.  The legislative body may provide for adjustments in ad
valorem property taxes pursuant to Section 53313.7 within a community
facilities district only after making both of the following findings
at the conclusion of the public hearing held pursuant to Article 2
(commencing with Section 53318):
   (a) That an ad valorem property tax is, or will be, levied on
property within a proposed community facilities district for the
exclusive purpose of making lease payments on an existing lease or
paying principal or interest on outstanding bonds or other existing
indebtedness, including state school building loans, incurred to
finance construction of capital facilities.
   (b) That capital facilities to be financed by the community
facilities district will provide the same services to the territory
of the community facilities district as were provided by the capital
facilities mentioned in subdivision (a).



53313.7.  (a) Upon making the findings pursuant to Section 53313.6,
the legislative body may, with the concurrence of the legislative
body which levied the property tax described in subdivision (a) of
Section 53313.6, by ordinance, determine that the total annual amount
of ad valorem property tax revenue due from parcels within the
proposed community facilities district, for purposes of paying
principal and interest on the debt identified in Section 53313.6,
shall not be increased after the date on which the resolution of
formation for the community facilities district is adopted, or after
a later date determined by the legislative body creating the
community facilities district with the concurrence of the legislative
body which levied the property tax in question.
   (b) The legislative body may, by ordinance, with the concurrence
of the legislative body that levied the property tax described in
subdivision (a) of Section 53313.6, determine to cease and eliminate
the freeze on property tax revenue established pursuant to
subdivision (a), upon determining that the community facilities
district's special tax or portion thereof levied on the parcels in
question to pay for the capital facilities specified in subdivision
(b) of Section 53313.6 shall cease to be levied and collected.




53313.9.  (a) All or any part of the cost of any school facilities
financed by a community facilities district may be shared by the
State Allocation Board pursuant to Section 17718.5 of the Education
Code.
   (b) If the State Allocation Board shares in any part of the cost
of the school facilities, the ownership of those facilities and the
real property upon which the facilities are located shall be held as
provided in the Leroy F. Greene School Facilities Act of 1998
(Chapter 12.5 (commencing with Section 17070.10) of Part 10 of
Division 1 of the Education Code).
   (c) The resolutions of intention, formation, consideration, and to
incur bonded indebtedness, adopted pursuant to subdivision (b) of
Section 53338 or Sections 53321, 53325.1, 53334, 53339.2, 53345, and
53351 may provide for cost sharing by the State Allocation Board and
for appropriate adjustment of the principal amount of any bond issue
or issues and of the rate and method of apportionment of any special
tax.



53314.  The legislative body may from time to time transfer moneys
to a community facilities district or to an improvement area within a
community facilities district, for the benefit of the district or
improvement area, from any funds available to the legislative body.
Any moneys so transferred may be used for the payment of any
currently payable expenses incurred by reason of the construction or
acquisition of any facilities or provision of any authorized services
within the district or improvement area prior to December 1 of the
first fiscal year in which a special tax may be levied for the
facilities or services within the district or improvement area. The
rate of interest earned by the investment of those moneys shall be
determined by the legislative body.



53314.3.  In the first fiscal year in which a special tax or charge
is levied for any facility or for any services in a community
facilities district or a zone within a community facilities district,
the legislative body shall include in the levy a sum sufficient to
repay to the legislative body the amounts transferred to that
district or zone pursuant to Section 53314. The amounts borrowed,
with interest, shall be retransferred to the proper fund or funds
from the first available receipts from the special levy in that
district or zone.
   Notwithstanding the above provisions, the legislative body may, by
a resolution adopted no later than the time of the first levy,
extend the repayment of the transferred funds over a period of time
not to exceed three consecutive years, in which event the levy and
each subsequent levy shall include a sum sufficient to repay the
amount specified by the legislative body for the year of the levy.



53314.5.  Pursuant to a resolution adopted by the legislative body,
the legislative body may appropriate any of its available moneys to a
revolving fund to be used for the acquisition of real or personal
property, engineering services, or the construction of structures or
improvements needed in whole or in part to provide one or more of the
facilities of a community facilities district. The revolving fund
shall be reimbursed from tax revenues or other moneys available from
the facilities district, and no sums shall be disbursed from the fund
until the legislative body has, by resolution, established the
method by, and term not exceeding five years within, which the
community facilities district is to reimburse the fund. The district
shall reimburse the fund for any amount disbursed to the area within
five years after such disbursement, together with interest at the
current rate per annum received on similar types of investments by
the legislative body as determined by the local agency's treasurer.



53314.6.  (a) In connection with the financing of services and
facilities pursuant to subdivision (f) of Section 53313 and
subdivision (k) of Section 53313.5, the legislative body may
establish a revolving fund to be kept in the treasury of the
district. Except as provided in subdivision (b), moneys in the
revolving fund shall be expended solely for the payment of costs with
respect to those services and facilities. The revolving fund may be
funded from time to time with moneys derived from any of the
following:
   (1) Proceeds of the sale of bonds issued pursuant to Article 5
(commencing with Section 53345), notwithstanding any limitation
contained in Section 53345.3.
   (2) Any taxes or charges authorized under this chapter.
   (3) Any other lawful source.
   (b) Subject to the provisions of any resolution, trust agreement
or indenture providing for the issuance of district bonds for the
purposes set forth in subdivision (k) of Section 53313.5, the
legislative body may withdraw money from the revolving fund whenever
and to the extent that it finds that the amount of money therein
exceeds the amount necessary to accomplish the purposes for which the
revolving fund was established. Any moneys withdrawn from the
revolving fund shall be used to redeem bonds of the district issued
for the purposes set forth in subdivision (k) of Section 53313.5 or
shall be paid to taxpayers in the district in amounts that the
legislative body determines.



53314.7.  (a)  Any responsible party as defined by subdivision (a)
of Section 25323.5 of the Health and Safety Code shall be liable to
the district for the costs incurred in the removal or remedial action
for the cleanup of any hazardous substance released or threatened to
be released into the environment. The amount of the costs shall
include interest on the costs accrued from the date of expenditure.
The interest shall be calculated based on the average annual rate of
return on the district's investment of surplus funds for the fiscal
year in which the district incurred the costs. Recovery of costs by a
community facilities district under this section shall be commenced
before or immediately upon completion of the removal or remedial
action, and payments received hereunder by the district shall be
deposited in the revolving fund in accordance with Section 53314.6.
   (b) To expedite cleanup, this section is intended to provide local
jurisdictions an alternative method of financing the cost of removal
or remedial action for the cleanup of any hazardous substance
through the issuance of voter-approved limited obligation bonds. The
provisions of this section shall not affect or limit the provisions
of any other law establishing the liability of any person for, or
otherwise regulating, the generation, transportation, storage,
treatment, or disposal of hazardous substances. The scope and
standard of liability for any costs recoverable pursuant to Section
53314.7 shall be the scope and standard of liability set forth in the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended (42 U.S.C. Sec. 6901 et seq.), or any other
provision of state or federal law establishing responsibility for
cleanup of hazardous waste sites.



53314.8.  At any time either before or after the formation of the
district, the legislative body may provide, by ordinance, that for a
period specified in the ordinance, the local agency may contribute,
from any source of revenue not otherwise prohibited by law, any
specified amount, portion, or percentage of the revenues for the
purposes set forth in the ordinance, limited to the following: the
acquisition or construction of a facility, the acquisition of
interest in real property, or the payment of debt service with
respect to the financing of either, the provision of authorized
services, and the payment of expenses incidental thereto. The
contribution shall not constitute an indebtedness or liability of the
local agency.



53314.9.  (a) Notwithstanding Section 53313.5, at any time either
before or after the formation of the district, the legislative body
may accept advances of funds or work in-kind from any source,
including, but not limited to, private persons or private entities
and may provide, by resolution, for the use of those funds or that
work in-kind for any authorized purpose, including, but not limited
to, paying any cost incurred by the local agency in creating a
district. The legislative body may enter into an agreement, by
resolution, with the person or entity advancing the funds or work
in-kind, to repay all or a portion of the funds advanced, or to
reimburse the person or entity for the value, or cost, whichever is
less, of the work in-kind, as determined by the legislative body,
with or without interest, under all of the following conditions:
   (1) The proposal to repay the funds or the value or cost of the
work in-kind, whichever is less, is included both in the resolution
of intention to establish a district adopted pursuant to Section
53321 and in the resolution of formation to establish the district
adopted pursuant to Section 53325.1, or in the resolution of
consideration to alter the types of public facilities and services
provided within an established district adopted pursuant to Section
53334.
   (2) Any proposed special tax or change in a special tax is
approved by the qualified electors of the district pursuant to this
chapter. Any agreement shall specify that if the qualified electors
of the district do not approve the proposed special tax or change in
a special tax, the local agency shall return any funds which have not
been committed for any authorized purpose by the time of the
election to the person or entity advancing the funds.
   (3) Any work in-kind accepted pursuant to this section shall have
been performed or constructed as if the work had been performed or
constructed under the direction and supervision, or under the
authority of, the local agency.
   (b) The agreement shall not constitute a debt or liability of the
local agency.



53315.  This chapter shall be liberally construed in order to
effectuate its purposes. No error, irregularity, informality, and no
neglect or omission of any officer, in any procedure taken under this
chapter, which does not directly affect the jurisdiction of the
legislative body to order the installation of the facility or the
provision of service, shall void or invalidate such proceeding or any
levy for the costs of such facility or service.



53315.3.  The failure of any person to receive a notice, resolution,
order, or other matter shall not affect in any way whatsoever the
validity of any proceedings taken under this chapter, or prevent the
legislative body from proceeding with any hearing so noticed.



53315.6.  When any proceeding is initiated under this chapter by a
legislative body other than that of a city or county, a copy of the
resolution of intention shall be transmitted to the legislative body
of the city, where the land to be assessed lies within the corporate
limits of any city, or of the county, where the land to be assessed
lies within an unincorporated territory.



53315.8.  A county may not form a district within the territorial
jurisdiction of a city without the consent of the legislative body of
the city.


53316.  This chapter applies to all local agencies insofar as those
entities have the power to install or contribute revenue for any of
the facilities or provide or contribute revenue for any of the
services authorized under this chapter. This chapter authorizes local
agencies to create community facilities districts pursuant to this
chapter within their territorial limits. A local agency may initiate
proceedings pursuant to Section 53318 to include territory proposed
for annexation to the local agency within a community facilities
district if a petition or resolution of application for the
annexation of the territory to the local agency has been accepted for
filing and a certificate of filing has been issued by the executive
officer of the local agency formation commission at the time the
proceedings to create the district are initiated. Those proceedings
may be completed only if the annexation of the territory to the local
agency is completed. The officers of local agencies who have similar
powers and duties, as determined by the legislative body of the
local agency, as the municipal officers referred to in this chapter
shall have the powers and duties given by this chapter to the
municipal officials. Where no similar officer exists, the legislative
body of the local agency shall, by resolution, appoint a person or
designate an officer to perform the duties under this chapter. Any
local agency that has no authority to enact an ordinance under other
laws may, for purposes of this chapter, enact an ordinance in
substantially the same manner as provided for the enactment of a city
ordinance in Chapter 2 (commencing with Section 36900) of Part 2 of
Division 3 of Title 4.



53316.2.  (a) A community facilities district may finance facilities
to be owned or operated by a public agency other than the agency
that created the district, or services to be provided by a public
agency other than the agency that created the district, or any
combination, only pursuant to a joint community facilities agreement
or a joint exercise of powers agreement adopted pursuant to this
section. A joint community facilities agreement or a joint exercise
of powers agreement with a state or federal agency shall not be
required if the local agency that created the district is the agency
that would, in the absence of the district, enter into an agreement
with the state or federal agency for the provision of the facilities
or services, or if the local agency that created the district enters
into a joint agreement with the public agency that would, in the
absence of the district, enter into an agreement with the state or
federal agency for the provision of the facilities or services.
   (b) At any time prior to the adoption of the resolution of
formation creating a community facilities district or a resolution of
change to alter a district, or a resolution or resolutions
authorizing issuance of bonds pursuant to Section 53356, the
legislative bodies of two or more local agencies may enter into a
joint community facilities agreement pursuant to this section and
Sections 53316.4 and 53316.6 or into a joint exercise of powers
agreement pursuant to the Joint Exercise of Powers Act (Chapter 5
(commencing with Section 6500) of Division 7 of Title 1) to exercise
any power authorized by this chapter with respect to the community
facilities district being created or changed if the legislative body
of each entity adopts a resolution declaring that the joint agreement
would be beneficial to the residents of that entity.
   (c) Notwithstanding the Joint Exercise of Powers Act, a
contracting party may use the proceeds of any special tax or charge
levied pursuant to this chapter or, in the case of facilities, of any
bonds or other indebtedness issued pursuant to this chapter to
provide facilities or services which that contracting party is
otherwise authorized by law to provide, even though another
contracting party does not have the power to provide those facilities
or services.
   (d) Notwithstanding subdivision (b), nothing in this section shall
prevent entry into or amendment of a joint community facilities
agreement or a joint exercise of powers agreement at any time, if the
new agreement or amendment is necessary, as determined by the
legislative body, for either of the following reasons:
   (1) To allow an orderly transition of governmental facilities and
finances in the case of any change in governmental organization
approved pursuant to the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000 (Division 3 (commencing with Section
56000) of Title 5) or other law governing the reorganization of any
agency that is a party to the agreement.
   (2) To allow participation in the agreement by a state or federal
agency, including, but not limited to, the California Department of
Transportation. Participation in an agreement by a state or federal
agency is purely optional.
   (e) Notwithstanding any other provision of this chapter, no local
agency that is party to a joint exercise of powers agreement or joint
community facilities agreement shall have primary responsibility for
formation of a district, or for an extension of authorized
facilities and services or a change in special taxes pursuant to
Article 3 (commencing with Section 53330), unless that local agency
is one or more of the following:
   (1) A city, a county, or a city and county.
   (2) An agency created pursuant to a joint powers agreement that is
separate from the parties to the agreement, is responsible for the
administration of the agreement, and is subject to the notification
requirement of Section 6503.5.
   (3) An agency that is reasonably expected to have responsibility
for providing facilities or services to be financed by a larger share
of the proceeds of special taxes and bonds of the district or
districts created or changed pursuant to the joint exercise of powers
agreement or the joint community facilities agreement than any other
local agency.


53316.4.  The agreement entered into pursuant to Section 53316.2
shall contain a description of the facilities and services to be
provided under the agreement, and any real or tangible property which
is to be purchased, constructed, expanded, or rehabilitated.




53316.6.  The agreement entered into pursuant to Section 53316.2 may
provide for the division of responsibility to provide any of the
facilities or services among the entities entering into the
agreement. The agreement shall provide for the allocation and
distribution of the proceeds of any special tax levy among the
parties to the agreement.



53317.  Unless the context otherwise requires, the definitions
contained in this article shall govern the construction of this
chapter.
   (a) "Clerk" means the clerk of the legislative body of a local
agency.
   (b) "Community facilities district" means a legally constituted
governmental entity established pursuant to this chapter for the sole
purpose of financing facilities and services.
   (c) "Cost" means the expense of constructing or purchasing the
public facility and of related land, right-of-way, easements,
including incidental expenses, and the cost of providing authorized
services, including incidental expenses.
   (d) "Debt" means any binding obligation to pay or repay a sum of
money, including obligations in the form of bonds, certificates of
participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses,
or individuals, or long-term contracts.
   (e) "Incidental expense" includes all of the following:
   (1) The cost of planning and designing public facilities to be
financed pursuant to this chapter, including the cost of
environmental evaluations of those facilities.
   (2) The costs associated with the creation of the district,
issuance of bonds, determination of the amount of taxes, collection
of taxes, payment of taxes, or costs otherwise incurred in order to
carry out the authorized purposes of the district.
   (3) Any other expenses incidental to the construction, completion,
and inspection of the authorized work.
   (f) "Landowner" or "owner of land" means any person shown as the
owner of land on the last equalized assessment roll or otherwise
known to be the owner of the land by the legislative body. The
legislative body has no obligation to obtain other information as to
the ownership of the land, and its determination of ownership shall
be final and conclusive for the purposes of this chapter. A public
agency is not a landowner or owner of land for purposes of this
chapter, unless one of the following exists:
   (1) The land owned by a public agency would be subject to a
special tax pursuant to Section 53340.1.
   (2) The public agency has acquired the property by purchase or
negotiation in connection with foreclosure of a special tax lien and
it is intended that the property will be transferred to private
ownership.
   (3) The public agency states in the proceedings that its land is
intended to be transferred to private ownership and provides in the
proceedings that its land will be subject to the special tax on the
same basis as private property within the district and affirmatively
waives any defense based on the fact of public ownership, to any
action to foreclose on the property in the event of nonpayment of the
special tax.
   (4) The land owned by a public agency is within the territory of a
military base that is closed or is being closed.
   (g) "Legislative body" means the legislative body or governing
board of any local agency.
   (h) "Local agency" means any city or county, whether general law
or chartered, special district, school district, joint powers entity
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1, redevelopment agency, or any other municipal
corporation, district, or political subdivision of the state.
   (i) "Rate" means a single rate of tax or a schedule of rates.
   (j) "Services" means the provision of categories of services
identified in Section 53313. "Services" includes the performance by
employees of functions, operations, maintenance, and repair
activities. "Services" does not include activities or facilities
identified in Section 53313.5.


53317.3.  If property not otherwise exempt from a special tax levied
pursuant to this chapter is acquired by a public entity through a
negotiated transaction, or by gift or devise, the special tax shall,
notwithstanding Section 53340, continue to be levied on the property
acquired and shall be enforceable against the public entity that
acquired the property. However, even if the resolution of formation
that authorized creation of the district did not specify conditions
under which the obligation to pay a special tax may be prepaid and
permanently satisfied, the legislative body of the local agency that
created the district may specify conditions under which the public
agency that acquires the property may prepay and satisfy the
obligation to pay the tax. The conditions may be specified only if
the local agency that created the district finds and determines that
the prepayment arrangement will fully protect the interests of the
owners of the district's bonds.



53317.5.  If property subject to a special tax levied pursuant to
this chapter is acquired by a public entity through eminent domain
proceedings, the obligation to pay the special tax shall be treated,
pursuant to Section 1265.250 of the Code of Civil Procedure, as if it
were a special annual assessment. For this purpose, the present
value of the obligation to pay a special tax to pay the principal and
interest on any indebtedness incurred by the district prior to the
date of apportionment determined pursuant to Section 5082 of the
Revenue and Taxation Code shall be treated the same as a fixed lien
special assessment.