2005 California Government Code Sections 53330-53338.5 Services and Changes in Special Taxes

53330.  Upon the establishment of a community facilities district,
only the public facilities and services as described in the
resolution of formation may be financed by the district under the
authority of this chapter, except as provided in this article.
53330.3.  Under no circumstances shall any buyer or prospective
buyer of any completed structure for which a certificate of occupancy
for private residential use has been issued which is located within
any district formed pursuant to this chapter be asked, required, or
otherwise induced to waive any right to petition or take any other
action authorized pursuant to this article.  No contract, agreement,
or covenant shall be binding with respect to such a waiver.
53330.5.  Upon approval of a special tax pursuant to Article 2
(commencing with Section 53318), the special tax may be levied only
at the rate and may be apportioned only in the manner specified in
the resolution of formation, except as provided in this article, and
except that the legislative body may levy the special tax at a rate
lower than that specified in the resolution.  In addition, the
special tax may be levied only so long as it is needed to pay the
principal and interest on debt incurred in order to construct
facilities under authority of this chapter,  or so long as it is
needed to pay the costs and incidental expenses of services or of the
construction of facilities authorized by this chapter.
   When the legislative body determines that the special tax shall
cease to be levied, the legislative body shall direct the clerk to
record a Notice of Cessation of Special Tax which shall state that
the obligation to pay the special tax has ceased and that the lien
imposed by the Notice of Special Tax Lien recorded in Book ____, and
Page ____ of the records of the County Recorder of ____ County, State
of California, is extinguished.  The Notice of Cessation of Special
Tax shall additionally identify the book and page of the Book of Maps
of Assessment and Community Facilities Districts wherein the map of
the boundaries of the district is recorded.
53330.7.  Except as otherwise provided in this article, the
legislative body may, at any time, after conducting a public hearing,
eliminate one or more of the types of facilities and services
specified in the resolution of intention to establish the district
but may not finance any types of facilities and services that were
not specified in the resolution of intention.
53331.  (a) If the legislative body determines that the public
convenience and necessity require any change in the types of
authorized public facilities or services which should be financed by
an established community facilities district, that  the rate or
method of apportionment of a special tax should be changed, or that a
new special tax should be proposed, the legislative body may adopt a
resolution of consideration to alter the types of public facilities
or services to be financed by the district, to levy a new special tax
  or special taxes, or, except as provided in subdivision (b), to
alter the rate or method of apportionment of the special tax.  Those
proceedings may be commenced at any time. Section 53325.6 applies to
any types of facilities or services proposed to be financed by the
district.
   (b) The legislative body shall not adopt a resolution of
consideration to reduce the rate of any special tax or terminate the
levy of any special tax if the proceeds of that tax are being
utilized to retire any debt incurred pursuant to this chapter unless
the legislative body determines that the reduction or termination of
that tax would not interfere with the timely retirement of that debt.
   (c) The resolution of consideration adopted pursuant to
subdivision (a) shall  contain all of the information required by
subdivisions (a) to (e), inclusive, of Section 53334.
53331.5.  In addition to the other changes that may be made pursuant
to this article, the legislative body may use the procedures of this
article to gain authorization to accept bonds tendered in payment of
special taxes or at a foreclosure sale pursuant to Sections 53344.1
and 53356.8.
53332.  (a) If a petition signed by 25 percent or more of the
registered voters residing in the district, or by the owners of 25
percent or more of the territory within the district, is filed with
the legislative body requesting that proceedings be commenced to
change the types of public facilities or services financed by the
district or that the rate or method of apportionment of an existing
special tax be changed, or that a new special tax be levied, the
legislative body shall within 40 days thereafter adopt a resolution
of consideration in the form specified in Section 53334 to make those
changes within the community facilities district except that an
existing special tax being used to pay off any debt incurred in order
to build or acquire capital facilities under this chapter shall not
be reduced or terminated if doing so would interfere with the timely
retirement of that debt.
   (b) Any petition filed by landowners shall be accompanied by the
payment of the fee which the legislative body determines.  That fee
may be imposed in an amount sufficient to compensate the legislative
body for all costs incurred in conducting proceedings to change the
district pursuant to this article.
53333.  The petition shall request the legislative body to commence
proceedings to make specified changes to a named community facilities
district.  The petition may consist of any number of separate
instruments each of which shall comply with all the requirements of a
petition except as to the number of signatures.
53334.  The resolution of consideration to alter the types of public
facilities and services financed by an established community
facilities district,  or to levy a new special tax or special taxes,
or to alter the rate or method of apportionment of an existing
special tax, shall do all of the following:
   (a) State the name of the area.
   (b) Generally describe the territory included in the area.
   (c) Specify the changes in public facilities and services which it
is proposed that the district finance.
   (d) Specify any new special taxes which would be levied to pay for
new or existing facilities and services and any proposed alteration
to the rate or method of apportionment of an existing special tax.
   (e) Fix a time and place for a hearing upon the resolution which
shall not be less than 30 or more than 60 days after the adoption of
the resolution of consideration.
53335.  The clerk of the legislative body shall give notice of the
hearing in the same manner and within the same time as provided for
the giving of notice of a hearing on a resolution of intention to
establish a community facilities district.
   The notice shall do all of the following:
   (a) Contain the text or a summary of the resolution.
   (b) State the time and place for hearing.
   (c) State that at the hearing the testimony of all interested
persons or taxpayers for or against the proposed changes in public
facilities and services and the levying of additional special taxes
or of changing existing special taxes will be heard.  The notice
shall also describe, in summary, the effect of protests made by
registered voters or landowners against the proposed changes in
facilities or services and the levying of additional taxes or changes
in existing taxes.
   (d) Describe the proposed voting procedure.
53336.  At the hearing, protests against the proposals described in
the resolution may be made orally, or in writing by any interested
persons.  Any protests pertaining to the regularity or sufficiency of
the proceedings shall be in writing and shall clearly set forth the
irregularities or defects to which objection is made.  All written
protests shall be filed with the clerk of the legislative body on or
before the time fixed for the hearing.  The legislative body may
waive any irregularities in the form or content of any written
protest and at the hearing may correct minor defects in the
proceedings.  Written protests may be withdrawn in writing at any
time before the conclusion of the hearing.
53337.  If 50 percent or more of the registered voters, or six
registered voters, whichever is more, residing within the district,
or the owners of one-half or more of the area of the land in the
territory included in the district and not exempt from the special
tax file written protests against changing the public facilities or
services financed by the district, those changes in the facilities or
services shall be eliminated from the resolution ordering changes in
the types of public facilities or services to be financed and the
changes shall not be included in a resolution for a period of one
year from the date of the decision of the legislative body on the
hearing.
   If 50 percent or more of the registered voters, or six registered
voters, whichever is more, residing within the district, or the
owners of one-half or more of the area of the land in the territory
included in the district and not exempt from the special tax file
written protests against the levying of any additional special taxes
within the district, or against a proposed alteration to an existing
special tax within the district, those changes shall be eliminated
from the resolution and the changes shall not be included in a
resolution for a period of one year from the date of the decision of
the legislative body on the hearing.
53338.  (a) The hearing may be continued from time to time, but
shall be completed within 30 days, except that if the legislative
body finds that the complexity of the proposed  changes or the need
for public participation requires additional time, the hearing may be
continued from time to time for a period not to exceed six months.
At the conclusion of the hearing the legislative body may abandon the
proceedings or may, after passing upon all protests, submit the
question of levying a new special tax or of changing the rate or
method of apportionment of an existing special tax or of changing the
types of facilities and services to be financed by the district, or
any combination, to the qualified electors of the district as
specified in Article 2 (commencing with Section 53318).
   (b) After the canvass of any election conducted pursuant to this
section, the legislative body shall adopt a resolution of change
determining that the proposed levy of a new special tax or of changes
in the types of facilities and services to be financed by the
district, or any combination, are lawfully authorized, if two-thirds
of the votes cast on the proposition are in favor of the proposed
levy or changes.
   (c) Upon adoption of a resolution of change, the clerk of the
legislative body shall record notice of the changes pursuant to
Section 3117.5 of the Streets and Highways Code.
53338.5.  The legislative body may, by ordinance, dissolve any
existing Mello-Roos Community Facilities District which it has
created upon making all of the following determinations:
   (a) That the district is not obligated to pay any outstanding
debt.
   (b) That the district has no authorization to levy any special
tax.  Upon dissolving a district, the legislative body shall cause an
addendum to be recorded to the Notice of Special Tax Lien recorded
pursuant to Section 3114.5 of the Streets and Highways Code which
shall state that the Community Facilities District and all associated
liens, if any, have been dissolved.  The local agency shall be
liable for any outstanding debt discovered to exist after the
dissolution of a district.