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<ns0:Description>
<ns0:Id>20250SB__051694CHP</ns0:Id>
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<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionDate>2025-09-10</ns0:ActionDate>
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<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-13</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>CHAPTERED</ns0:ActionText>
<ns0:ActionDate>2025-10-13</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>APPROVED</ns0:ActionText>
<ns0:ActionDate>2025-10-13</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>FILED</ns0:ActionText>
<ns0:ActionDate>2025-10-13</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>516</ns0:MeasureNum>
<ns0:MeasureState>CHP</ns0:MeasureState>
<ns0:ChapterYear>2025</ns0:ChapterYear>
<ns0:ChapterType>CHP</ns0:ChapterType>
<ns0:ChapterSessionNum>0</ns0:ChapterSessionNum>
<ns0:ChapterNum>769</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Ashby</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Ashby</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Section 53398.75 of, and to add Section 53398.75.8 to, the Government Code, relating to land use. </ns0:Title>
<ns0:RelatingClause>land use</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act. </ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law authorizes the legislative body of a city or a county, defined to include a city and county, to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, as provided. Existing law provides for the preparation of a proposed infrastructure financing plan, as provided, which takes effect upon adoption by the public financing authority of the district following a specified public hearing and protest procedure. Existing law authorizes the infrastructure financing plan to provide for the division of taxes levied on taxable property in the area included within the district, as specified, and authorizes the public financing authority to issue bonds by adopting a resolution containing specified provisions, including a determination of the amount of tax revenue available or estimated to be
available for the payment of the principal of, and interest on, the bonds.</html:p>
<html:p>This bill would establish the California Capital City Downtown Revitalization Act, and would authorize the City or County of Sacramento to create an enhanced infrastructure financing district within the downtown Sacramento geographic area. The bill would authorize an affected taxing entity located entirely, or in part, in the County of Sacramento to opt in to the district.</html:p>
<html:p>Existing law specifies that an enhanced infrastructure financing district is not prohibited from utilizing revenues from additional sources to support its activities if the district obtains voter approval, as applicable, and the infrastructure financing plan is approved.</html:p>
<html:p>This bill would additionally specify that a district is not prohibited from utilizing state funds to support its activities if the district obtains voter approval, as
applicable, and the infrastructure financing plan is approved. The bill would also specify that the California Capital City Downtown Revitalization District may accept state funds, as provided.</html:p>
<html:p>This bill would make legislative findings and declarations as to the necessity of a special statute for the downtown Sacramento geographic area.</html:p>
<html:p>This bill would incorporate additional changes to Section 53398.75 of the Government Code proposed by SB 5 to be operative only if this bill and SB 5 are enacted and this bill is enacted last.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>NO</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_44F1A6F7-C0A7-48F9-BDD7-7809A7ED7780">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 53398.75 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Num>53398.75.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon
the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation
of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former
redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) of this section or of subdivision (b) of Section 53396 shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in Section 53398.63.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For the purposes of this section, “net available revenue” means periodic distributions to the city or
county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the
Health and Safety Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the
respective city or county.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to Section 53398.69:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of this title).
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
Any state funds.
</html:p>
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<ns0:Num>SEC. 1.5.</ns0:Num>
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Section 53398.75 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
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<ns0:Num>53398.75.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Any infrastructure financing plan may contain a provision that taxes, other than those specified in Section 53398.75.1, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon
the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable
property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the
division of taxes allocated to the district pursuant to subdivision (a) of this section or of subdivision (b) of Section 53396 shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in Section 53398.63.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For the purposes of this section, “net available revenue” means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded
from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college district, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the Health and Safety Code.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
That portion of any ad valorem
property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the
applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to Section 53398.69:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500)
of Division 18 of the Streets and Highways Code).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title).
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar
assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
Any state funds.
</html:p>
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<ns0:BillSection id="id_9D93BB41-FDEA-4043-80CB-16D5386CBFC7">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 53398.75.8 is added to the
<ns0:DocName>Government Code</ns0:DocName>
, to read:
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<ns0:Num>53398.75.8.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
This section shall be known, and may be cited, as the California Capital City Downtown Revitalization Act.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The City of Sacramento or the County of Sacramento may create a California Capital City Downtown Revitalization District. Unless explicitly specified otherwise in this section, a California Capital City Downtown Revitalization District is an enhanced infrastructure financing district subject to the provisions of this chapter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The area to be financed with funds received pursuant to this section is within the downtown Sacramento
geographic area, defined by the Sacramento River, the American River, Broadway, and Alhambra Boulevard.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An affected taxing entity located entirely, or in part, in the County of Sacramento may opt in to a California Capital City Downtown Revitalization District pursuant to Section 53398.68.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Upon its creation, a California Capital City Downtown Revitalization District may accept any state funds pursuant to Section 53398.75.
</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs of the City and County of Sacramento and the downtown Sacramento geographic area.</html:p>
</ns0:Content>
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<ns0:BillSection id="id_D6BDBEF8-07F8-493E-B447-DFAD204BF0A8">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>Section 1.5 of this bill incorporates amendments to Section 53398.75 of the Government Code proposed by both this bill and Senate Bill 5. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2026, (2) each bill amends Section 53398.75 of the Government Code, and (3) this bill is enacted after Senate Bill 5, in which case Section 1 of this bill shall not become operative.</html:p>
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</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|