Benefit Assessment VTA

RAFT
Regional Alliance For Transit
Founded 1992

1000 Union Street, Suite 209
San Francisco, California 94133
raft@arch21.org
(415) 440-6895

Jan Schneider
R&J Jewelry
14 South First Street
San Jose CA 95113

April 16, 2004

Dear Ms Schneider:

Your name recently appeared in the Mercury News in an article about impacts of BART on businesses. Our organization believes you and your neighbors may well have an interest in AB 2817, a bill now before the California Legislature. You can read about the bill at http://www.assembly.ca.gov. We have taken the latest version, which was amended in the Assembly on April 15th, and have removed the passages that have been deleted in the amendment process to make the bill easier to read.

Sincerely,

for RAFT,
M. Kiesling

cc: Silicon Valley Taxpayers’ Association, Inc.

BILL NUMBER: AB 2817
AMENDED BILL TEXT

AMENDED IN ASSEMBLY APRIL 15, 2004

INTRODUCED BY Assembly Member Salinas

FEBRUARY 20, 2004

An act to amend Sections 100601, 100601.5, 100602.4, 100602.8, 100602.10, 100602.13, 100603, 100605, 100613, 100614, and 100616 of, and to repeal Sections 100602.2, 100602.3, 100602.5, 100602.6, and 100602.7 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2817, as amended, Salinas. Transportation: benefit assessment districts. Existing law authorizes the Santa Clara Valley Transportation Authority to establish benefit assessment districts relative to its rail lines. Existing law requires an election to be held regarding the proposal to form a benefit district if certain voters in the boundaries of the proposed benefit district file a petition with the board of directors of the authority within 30 days after the conclusion of a required public hearing, as specified. Existing law requires the board, if it proposes to levy a special benefit assessment on real property in the benefit district, to comply with specified notice, protest, and hearing procedures. Existing law also requires the board to submit the proposition of levying an assessment to those voters of the benefit district pursuant to specified requirements. Existing law authorizes the board to levy the assessment if the proposition is approved by the voters at the election.

This bill would delete the provisions requiring an election to form a benefit district and to levy a special benefit assessment. The bill would authorize the board to levy the assessment if there is no majority protest to its imposition. The bill would make various related changes.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

100601. (a) Whenever the board finds that property adjacent to, or in the vicinity of, one or more rail transit stations, or proposed rail transit stations, of the authority receives or will receive special benefit by reason of the location or operation of one or more of those rail transit stations, the board may, by resolution adopted by a two-thirds vote of its members, provide for notice and hearing on its intention to establish one or more special benefit districts and levy a special benefit assessment on real property therein for the purpose of financing, in whole or in part, the acquisition, construction, development, joint development, operation, maintenance, or repair of one or more rail transit stations and rail transit related facilities located within the benefit district In connection with the levy of a special benefit assessment, the board shall comply with the notice, protest, and hearing procedures set forth in Section 53753 of the Government Code.

(c) The resolution may provide that the proposed benefit district will contain separate zones, which may consist of either contiguous or noncontiguous areas of land within the district. The proposed benefit district and each proposed zone, if any, therein shall be an area adjacent to, or in the vicinity of, one or more rail transit stations or proposed rail transit stations. The boundaries of the benefit district and of each zone, if any, therein shall be drawn so as to reflect, as accurately as possible, the areas in which special benefits are conferred by reason of the proximity and operation of one or more rail transit stations.

(d) A notice stating the time and place of the hearing, and setting forth the boundaries and purpose of the proposed benefit district, shall be published prior to the time fixed for the hearing pursuant to Section 6066 of the Government Code.

(e) For purposes of this chapter, "benefit district" means a special benefit assessment district established pursuant to this chapter, the area of which shall not lie more than one-half mile from the center point of any rail transit station or proposed rail transit station.

(f) For purposes of this chapter, "transit related facilities" means land, buildings, and equipment, or any interest therein, whether or not the operation thereof produces revenue, which has, as its primary purpose, the operation of the rail transit system or the providing of services to the passengers of the rail transit system, but does not mean any land, buildings, or equipment, or interest therein, which is used primarily for the production of revenue not arising from the operation of the rail transit system. SEC. 2. Section 100601.5 of the Public Utilities Code is amended to read:

100601.5. (a) The resolution shall state, as appropriate, the maximum and minimum rate of assessment, the amount of the special benefit assessment and the purposes for which it is to be levied, the estimated cost of accomplishing the purposes, and the dates or approximate intervals at which the assessment shall be levied. The resolution shall also state that the exterior boundaries of the benefit district are set forth on a map on file with the secretary of the authority, which map shall govern for all purposes as to the extent of the benefit district and zones, if any, therein and that the area set forth on the map shall thereupon constitute and be known as "Benefit District No. ____ of the Santa Clara Valley Transportation Authority," or as "Benefit Zone ____ of the Benefit District No. ____ of the Santa Clara Valley Transportation Authority," as designated by the board.

A copy of the resolution shall be included with the notice given pursuant to Section 53753 of the Government Code.

SEC. 3. Section 100602.2 of the Public Utilities Code is repealed.

SEC. 4. Section 100602.3 of the Public Utilities Code is repealed.

SEC. 5. Section 100602.4 of the Public Utilities Code is amended to read:

100602.4. (a) Where any parcel in the benefit district is owned in joint tenancy, tenancy in common, or any other multiple ownership, the owners of that parcel may designate in writing which one of the owners shall be deemed the owner of the parcel for purposes of submitting an assessment ballot pursuant to Section 53753 of the Government Code. In the absence of a designation, the provisions of paragraph (1) of subdivision (e) of Section 53753 of the Government Code shall apply.

(b) The legal representative of a corporation or an estate owning real property in the benefit district may act on behalf of the corporation or the estate.

(c) (1) For purposes of this chapter, "legal representative" means an official of a corporation owning real property in the benefit district.

(2) For purposes of this chapter, "legal representative" also means a guardian, conservator, executor, or administrator of the estate of the holder of title to real property in the benefit district who is all of the following:

(A) The person is appointed under the laws of this state.

(B) The person is entitled to the possession of the estate’s real property.

(C) The person is authorized by the appointing court to exercise the particular right, privilege, or immunity which he or she seeks to exercise.

SEC. 6. Section 100602.5 of the Public Utilities Code is repealed.

SEC. 7. Section 100602.6 of the Public Utilities Code is repealed.

SEC. 8. Section 100602.7 of the Public Utilities Code is repealed.

SEC. 9. Section 100602.8 of the Public Utilities Code is amended to read:

100602.8. If there is no majority protest to the imposition of an assessment, the board may levy the assessment in accordance with the resolution adopted pursuant to Section 100601.

SEC. 10. Section 100602.10 of the Public Utilities Code is amended to read:

100602.10. Notice of each hearing upon the petition for exclusion or reduction shall be given in accordance with subdivision (d) of Section 100601.

Notice shall also be mailed at least 30 days prior to the hearing to all record owners of each identified parcel within the boundaries of the benefit district or zone.

SEC. 11. Section 100602.13 of the Public Utilities Code is amended to read:

100602.13. Upon the hearing on an exclusion or reduction petition by the board, or upon the record of hearing by a hearing officer, the board shall order the petition be denied when the petitioner has not shown by a preponderance of the evidence that in an exclusion petition the real property is not benefited or in a reduction petition that the assessment exceeds the benefit to the property.

SEC. 12. Section 100603 of the Public Utilities Code is amended to read:

100603. (a) Following formation of the benefit district or concurrently therewith, if the board deems it necessary to incur a bonded indebtedness for the acquisition, construction, development, joint development, completion, operation, maintenance, or repair of one or more rail transit stations and related rail transit facilities located within the benefit district, the board may provide, by resolution, that the bonded indebtedness shall be payable from special benefit assessments levied within the benefit district. The resolution shall be adopted by a two-thirds vote of the members of the board, and shall declare and state all of the following:

(1) That the board intends to incur an indebtedness, by the issuance of bonds of the authority, for the benefit district which the board has formed, or intends to form, within a portion of the authority.

(2) The purposes for which the proposed debt is to be incurred, which may include all costs and estimated costs necessary or convenient for, incidental to, or connected with, the accomplishment of the purposes, including, without limitation, engineering, inspection, legal, fiscal agent, financial consultant, bond and other reserve funds, working capital, bond interest estimated to accrue during the construction period, if any, and for a period not exceeding three years thereafter, and the expenses of all proceedings for the authorization, issuance, and sale of the bonds.

(3) The estimated cost of accomplishing the purposes and the amount of the principal of the indebtedness to be incurred.

(4) That a general description of the benefit district and of each zone, if any, therein and maps showing the exterior boundaries thereof are on file with the secretary of the authority and available for inspection by any interested person.

(5) That special benefit assessments for the payment of the bonds, and the interest thereon, have been, or are proposed to be levied in the benefit district or zones therein in accordance with the procedures and approval process set forth in Section 4 of Article XIII D of the California Constitution.

(6) The extent to which, if at all, all or a portion of the revenues of the authority are to be used to pay the principal of, interest on, and sinking fund payments for, the bonds, including the establishment and maintenance of any reserve fund therefor.

(7) The time and place set for hearing on the proposed issuance of the bonds.

(8) That, prior to levying a special benefit assessment, the board shall comply with the notice, protest, and hearing procedures set forth in Section 53753 of the Government Code.

(9) The maximum term the proposed bonds shall run before maturity, which shall not exceed 40 years from the date of the bonds or any series thereof.

(10) The maximum rate or rates of interest to be paid, which shall not exceed 12 percent per annum.

(11) That the pledge of special benefit assessment revenues to the bonds authorized by this section has priority over the use of any of those revenues for pay-as-you-go financing, except to the extent that this priority is expressly restricted by any of the authority’s agreements with bondholders.

(b) The notice stating the time and place of the hearing on the proposed issuance of bonds shall be published prior to the time fixed for the hearing pursuant to Section 6066 of the Government Code.

SEC. 13. Section 100605 of the Public Utilities Code is amended to read:

100605. Special benefit assessments for the payment of the principal of, and interest on, bonds issued for a benefit district or zone shall be levied in the benefit district or zone at rates that are sufficient in the aggregate, together with revenues already collected and available, to pay the principal of, and interest on, all bonds the authority issued for the benefit district or zone . Other revenues of the authority shall be used for the payment of the principal of, and interest on, the bonds only to the extent set forth in any agreement of the authority for the benefit of bondholders.

Special benefit assessments in the benefit district and zones, if any, therein shall be calculated in accordance with the requirements set forth in Section 4 of Article XIII D of the California Constitution.

SEC. 14. Section 100613 of the Public Utilities Code is amended to read:

100613. (a) The board shall not change the purposes, the estimated cost, the boundaries of the benefit district or zones, if any, therein, or the amount of bonded debt to be incurred until after it gives notice of its intention to do so, stating each proposed change in the purpose and stating, if applicable, that the exterior boundaries proposed to be changed are set forth on a map on file with the secretary of the authority. The notice shall also specify the time and place set for hearing.

(b) The notice shall be published prior to the time set for the hearing pursuant to Section 6066 of the Government Code.

(c) The notice shall also be mailed at least 30 days prior to the hearing to all owners of real property affected by the proposed change whose names and addresses appear on the last equalized assessment roll or are otherwise known to the board of supervisors of the county in which the benefit district is located or to the authority. Provided, however, that any proposed increases to a special benefit assessment may not be made unless all notice, protest, and hearing procedures set forth in Section 53753 of the Government Code have been followed.

SEC. 15. Section 100614 of the Public Utilities Code is amended to read:

100614. At the time and place fixed for a hearing on changes, or at any time and place to which the hearing is adjourned, the board shall proceed with the hearing. At the hearing, interested persons may appear and present matters material to the changes set forth in the notice.

At the conclusion of the hearing, the board shall, by resolution, determine whether to make any or all of the changes set forth in the notice. The determinations made in the resolution are conclusive and final.

SEC. 16. Section 100616 of the Public Utilities Code is amended to read:

100616. Any action or proceeding which contests, questions, or denies the validity or legality of the formation of any benefit district or zone, the issuance of any bonds therefor pursuant to this chapter, or any proceedings relating thereto, shall be commenced within six months from the date of the formation; otherwise, the formation of the benefit district or zone, the issuance of the bonds, and all proceedings relating thereto shall be held to be in every respect valid, legal, and incontestable.