2005 California Government Code Sections 53318-53329.5 District

53318.  Proceedings for the establishment of a community facilities
district may be instituted by the legislative body on its own
initiative and shall be instituted by the legislative body when any
of the following occurs:
   (a) A written request for the establishment of a district, signed
by two members of the legislative body, describing the boundaries of
the territory which is proposed for inclusion in the area and
specifying the type or types of facilities and services to be
financed by the district, is filed with the legislative body.
   (b) A petition requesting the institution of the proceedings
signed by the requisite number of registered voters, as specified in
subdivision (d) of Section 53319, is filed with the clerk of the
legislative body.  The petition may consist of any number of separate
instruments, each of which shall comply with all of the requirements
of the petition, except as to the number of signatures.
   (c) A petition requesting the institution of the proceedings
signed by landowners owning the requisite portion of the area of the
proposed district, as specified in subdivision (d) of Section 53319,
is filed with the clerk  of the legislative body.
   (d) The written request filed pursuant to subdivision (a) and the
petitions filed pursuant to subdivisions (b) and (c) shall be
accompanied by the payment of a fee in an amount which the
legislative body determines is sufficient to compensate the
legislative body for all costs incurred in conducting proceedings to
create a district pursuant to this chapter.
53318.5.  Notwithstanding any provision of Part 1 (commencing with
Section 56000) of Division 3, a local agency formation commission
shall have no power or duty to review and approve or disapprove a
proposal to create a community facilities district or a proposal to
annex territory to, or detach territory from, such district, pursuant
to this chapter.
53319.  A petition requesting the institution of proceedings for the
establishment of a community facilities district shall do all of the
following:
   (a) Request the legislative body to institute proceedings to
establish a community facilities district pursuant to this chapter.
   (b) Describe the boundaries of the territory which is proposed for
inclusion in the district.
   (c) State the type or types of facilities and services to be
financed by the district.
   (d) Be signed by not less than 10 percent of the registered voters
residing within the territory proposed to be included within the
district or by owners of not less than 10 percent of the area of land
proposed to be included within the district.  If the legislative
body finds that the petition is signed by the requisite number of
registered voters residing within the territory proposed to be
included within the district or by the requisite number of owners of
land proposed to be included within the district, that finding shall
be final and conclusive.
53320.  Within 90 days after either a written request by two members
of the legislative body or a petition requesting the institution of
proceedings for the establishment of a community facilities district
is filed with the legislative body, it shall adopt a resolution of
intention to establish a community facilities district in the form
specified in Section 53321.
53321.  Proceedings for the establishment of a community facilities
district shall be instituted by the adoption of a resolution of
intention to establish the district which shall do all of the
following:
   (a) State that a community facilities district is proposed to be
established under the terms of this chapter and describe the
boundaries of the territory proposed for inclusion in the district,
which may be accomplished by reference to a map on file in the office
of the clerk, showing the proposed community facilities district.
The boundaries of the territory proposed for inclusion in the
district shall include the entirety of any parcel subject to taxation
by the proposed district.
   (b) State the name proposed for the district in substantially the
following form:  "Community Facilities District No. ____."
   (c) Describe the public facilities and services proposed to be
financed by the district pursuant to this chapter.  The description
may be general and may include alternatives and options, but it shall
be sufficiently informative to allow a taxpayer within the district
to understand what the funds of the district may be used to finance.
If the purchase of completed public facilities or the incurring of
incidental expenses is proposed, the resolution shall identify those
facilities or expenses.  If facilities are proposed to be financed
through any financing plan, including, but not limited to, any lease,
lease-purchase, or installment-purchase arrangement, the resolution
shall briefly describe the proposed arrangement.
   (d) State that, except where funds are otherwise available, a
special tax sufficient to pay for all facilities and services,
secured by recordation of a continuing lien against all nonexempt
real property in the district, will be annually levied within the
area.  The resolution shall specify the rate, method of
apportionment, and manner of collection of the special tax in
sufficient detail to allow each landowner or resident within the
proposed district to estimate the maximum amount that he or she will
have to pay.  The legislative body may specify conditions under which
the obligation to pay the specified special tax may be prepaid and
permanently satisfied.  The legislative body may specify conditions
under which the rate of the special tax may be permanently reduced in
compliance with the provisions of Section 53313.9.
   In the case of any special tax to pay for public facilities and to
be levied against any parcel used for private residential purposes,
(1) the maximum special tax shall be specified as a dollar amount
which shall be calculated and thereby established not later than the
date on which the parcel is first subject to the tax because of its
use for private residential purposes, which amount shall not be
increased over time except that it may be increased by an amount not
to exceed 2 percent per year, (2) the resolution shall specify a tax
year after which no further special tax subject to this sentence
shall be levied or collected, except that a special tax that was
lawfully levied in or before the final tax year and that remains
delinquent may be collected in subsequent years, and (3) the
resolution shall specify that under no circumstances will the special
tax levied against any parcel subject to this sentence be increased
as a consequence of delinquency or default by the owner of any other
parcel or parcels within the district by more than 10 percent.  For
purposes of this paragraph, a parcel shall be considered "used for
private residential purposes" not later than the date on which an
occupancy permit for private residential use is issued.  Nothing in
this paragraph is intended to prohibit the legislative body from
establishing different tax rates for different categories of
residential property, or from changing the dollar amount of the
special tax for the parcel if the size of the residence is increased
or if the size or use of the parcel is changed.
   (e) Fix a time and place for a public hearing on the establishment
of the district which shall be not less than 30 or more than 60 days
after the adoption of the resolution.
   (f) Describe any adjustment in property taxation to pay prior
indebtedness pursuant to Sections 53313.6 and 53313.7.
   (g) Describe the proposed voting procedure.
   The changes made to this section by Senate Bill 1464 of the
1991-92 Regular Session of the Legislature shall not apply to special
taxes levied by districts for which a resolution of formation was
adopted before January 1, 1993.
53321.5.  At the time of the adoption of the resolution of intention
to establish a community facilities district, the legislative body
shall direct each of its officers who is or will be responsible for
providing one or more of the proposed types of public facilities or
services to be financed by the district, if it is established, to
study the proposed district and, at or before the time of the
hearing, file a report with the legislative body containing a brief
description of the public facilities and services by type which will
in his or her opinion be required to adequately meet the needs of the
district and his or her estimate of the cost of providing those
public facilities and services.  If the purchase of completed public
facilities or the payment of incidental expenses is proposed, the
legislative body shall direct its appropriate officer to estimate the
fair and reasonable cost of those facilities or incidental expenses.
  If removal or remedial action for the cleanup of any hazardous
substance is proposed, the legislative body shall (a) direct its
responsible officer to prepare or cause to be prepared, a remedial
action plan based upon factors comparable to those described in
subdivision (c) of Section 25356.1 of the Health and Safety Code or
(b) determine, on the basis of the particular facts and
circumstances, which shall be comparable to those described in
subdivision (g) of Section 25356.1 of the Health and Safety Code,
that the remedial action plan is not required or (c) condition
financing of the removal or remedial action upon approval of a
remedial action plan pursuant to Section 25356.1 of the Health and
Safety Code.  All of those reports shall be made a part of the record
of the hearing on the resolution of intention to establish the
district.
53322.  (a) The clerk of the legislative body shall publish a notice
of the hearing pursuant to Section 6061 in a newspaper of general
circulation published in the area of the proposed district.
Publication shall be complete at least seven days prior to the date
of the hearing.
   (b) The notice shall contain all of the following information:
   (1) The text or a summary of the resolution of intention to
establish the district which may refer to documents on file in the
office of the clerk for detail.
   (2) The time and place of the hearing on the establishment of the
district.
   (3) A statement that at the hearing the testimony of all
interested persons or taxpayers for or against the establishment of
the district, the extent of the district, or the furnishing of
specified types of public facilities or services will be heard.  The
notice shall also describe, in summary, the effect of protests made
by registered voters or landowners against the establishment of the
district, the extent of the district, the furnishing of a specified
type of facilities or services, or a specified special tax, as
provided in Section 53324.
   (4) A description of the proposed voting procedure.
53322.4.  The clerk of the legislative body may also give notice of
the hearing by first-class mail to each registered voter and to each
landowner within the proposed district.  This notice shall be mailed
at least 15 days before the hearing and shall contain the same
information as is required to be contained in the notice published
pursuant to Section 53322.
53323.  At the hearing, protests against the establishment of the
district, the extent of the district, or the furnishing of specified
types of public facilities or services within the district may be
made orally or in writing by any interested persons or taxpayer.  Any
protests pertaining to the regularity or sufficiency of the
proceedings shall be in writing and shall clearly set forth the
irregularities and 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.
53324.  If 50 percent or more of the registered voters, or six
registered voters, whichever is more, residing within the territory
proposed to be included in  the district, or the owners of one-half
or more of the area of the land in the  territory proposed to be
included in the district and not exempt from the special tax, file
written protests against the establishment of the district, and
protests are not withdrawn so as to reduce the value of the protests
to less than a majority, no further proceedings to create the
specified community facilities district or to levy the specified
special tax shall be taken for a period of one year from the date of
the decision of the legislative body.
   If the majority protests of the registered voters or of the
landowners are only against the furnishing of a specified type or
types of facilities or services within the district, or against
levying a specified special tax, those types of facilities or
services or the specified special tax shall be eliminated from the
resolution of formation.
53325.  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 district 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.  The
legislative body may modify the resolution of intention by
eliminating proposed facilities or services, or by changing the rate
or method of apportionment of the proposed special tax so as to
reduce the maximum special tax for all or a portion of the owners of
property within the proposed district, or by removing territory from
the proposed district.  Any modifications shall be made by action of
the legislative body at the public hearing.  If the legislative body
proposes to modify the resolution of intention in a way that will
increase the probable special tax to be paid by the owner of any lot
or parcel, it shall direct that a report be prepared that includes a
brief analysis of the impact of the proposed modifications on the
probable special tax to be paid by the owners of lots or parcels in
the district, and shall receive and consider the report before
approving the modifications or any resolution of formation which
includes those modifications.  At the conclusion of the hearing, the
legislative body may abandon the proposed establishment of the
community facilities district or may, after passing upon all
protests, determine to proceed with establishing the district.
53325.1.  (a) If the legislative body determines to establish the
district, it shall adopt a resolution of formation establishing the
district. The resolution of formation shall contain all of the
information required to be included in the resolution of intention to
establish the district specified in Section 53321.  If a special tax
is proposed to be levied in the district to pay for any facilities
or services and the special tax has not been eliminated by majority
protest pursuant to Section 53324, the resolution shall:
   (1) State that the proposed special tax to be levied within the
district has not been precluded by majority protest pursuant to
Section 53324.
   (2) Identify any facilities or services proposed to be funded with
the special tax.
   (3) Set forth the name, address, and telephone number of the
office, department, or bureau which will be responsible for preparing
annually a current roll of special tax levy obligations by assessor'
s parcel number and which will be responsible for estimating future
special tax levies pursuant to Section 53340.1.
   (4) State that upon recordation of a notice of special tax lien
pursuant to Section 3114.5 of the Streets and Highways Code, a
continuing lien to secure each levy of the special tax shall attach
to all nonexempt real property in the district and this lien shall
continue in force and effect until the special tax obligation is
prepaid and permanently satisfied and the lien canceled in accordance
with law or until collection of the tax by the legislative body
ceases.
   (5) Set forth the county of recordation and the book and page in
the Book of Maps of Assessments and Community Facilities Districts in
the county recorder's office where the boundary map of the proposed
community facilities district has been recorded pursuant to Sections
3111 and 3113 of the Streets and Highways Code.
   (b) In the resolution of formation adopted pursuant to subdivision
(a), the legislative body shall determine whether all proceedings
were valid and in conformity with the requirements of this chapter.
If the legislative body determines that all proceedings were valid
and in conformity with the requirements of this chapter, it shall
make a finding to that effect and that finding shall be final and
conclusive.
53325.3.  A tax imposed pursuant to this chapter is a special tax
and not a special assessment, and there is no requirement that the
tax be apportioned on the basis of benefit to any property.  However,
a special tax levied pursuant to this chapter may be on or based on
a benefit received by parcels of real property, the cost of making
facilities or authorized services available to each parcel, or some
other reasonable basis as determined by the legislative body.
53325.5.  (a) A community facilities district may include areas of
territory that are not contiguous.
   (b) In establishing the boundaries of the district, the
legislative body may alter the exterior boundaries of the district to
include less territory than that described in the notice of the
hearing but it may not include any territory not described in the
notice of the hearing.
53325.6.  Land devoted primarily to agricultural, timber, or
livestock uses and being used for the commercial production of
agricultural, timber, or livestock products may be included in a
community facilities district only if such land is contiguous to
other land which is included within the described exterior boundaries
of the community facilities district, and only if the legislative
body finds that the land will be benefited by any of the types of
public facilities and services proposed to be provided within the
district.  The land may, however, be included in the community
facilities district, if the owner requests its inclusion.
53325.7.  The legislative body may submit a proposition to establish
or change the appropriations limit, as defined by subdivision (h) of
Section 8 of Article XIIIB of the California Constitution, of a
community facilities district to the qualified electors of a proposed
or established district.  The proposition establishing or changing
the appropriations limit shall become effective if approved by the
qualified electors voting on the proposition and shall be adjusted
for changes in the cost of living and changes in populations, as
defined by subdivisions (b) and (c) of Section 7901, except that the
change in population may be estimated by the legislative body in the
absence of an estimate by the Department of Finance, and in
accordance with Section 1 of Article XIIIB of the California
Constitution.  For purposes of adjusting for changes in population,
the population of the district shall be deemed to be at least one
person during each calendar year.
53326.  (a) The legislative body shall then submit the levy of any
special taxes to the qualified electors of the proposed community
facilities district subject to the levy or to the qualified electors
of the territory to be annexed by the community facilities district
subject to the levy in the next general election or in a special
election to be held, notwithstanding any other requirement, including
any requirement that elections be held on specified dates, contained
in the Elections Code, at least 90 days, but not more than 180 days,
following the adoption of the resolution of formation.  The
legislative body shall provide the resolution of formation, a
certified map of sufficient scale and clarity to show the boundaries
of the district, and a sufficient description to allow the election
official to determine the boundaries of the district to the official
conducting the election within three business days after the adoption
of the resolution of formation.  Assessor's parcel numbers for the
land within the district shall be included if it is a landowner
election or the district does not conform to an existing district's
boundaries and if requested by the official conducting the election.
If the election is to be held less than 125 days following the
adoption of the resolution of formation, the concurrence of the
election official conducting the election shall be required.
However, any time limit specified by this section or requirement
pertaining to the conduct of the election, including any time limit
or requirement applicable to any election conducted pursuant to
Article 5 (commencing with Section 53345), may be waived with the
unanimous consent of the qualified electors of the proposed district
and the concurrence of the election official conducting the election.
   (b) Except as otherwise provided in subdivision (c), if at least
12 persons, who need not necessarily be the same 12 persons, have
been registered to vote within the territory of the proposed
community facilities district for each of the 90 days preceding the
close of the protest hearing, the vote shall be by the registered
voters of the proposed district, with each voter having one vote.
Otherwise, the vote shall be by the landowners of the proposed
district and each landowner who is the owner of record at the close
of the protest hearing, or the authorized representative thereof,
shall have one vote for each acre or portion of an acre of land that
he or she owns within the proposed community facilities district.
The number of votes to be voted by a particular landowner shall be
specified on the ballot provided to that landowner.  If the vote is
by landowners pursuant to this subdivision, the legislative body
shall determine that any facilities financed by the district are
necessary to meet increased demands placed upon local agencies as the
result of development or rehabilitation occurring in the district.
   (c) If the proposed special tax will not be apportioned in any tax
year on any portion of property in residential use in that tax year,
as determined by the legislative body, the legislative body may
provide that the vote shall be by the landowners of the proposed
district whose property would be subject to the tax if it were levied
at the time of the election.  Each of these landowners shall have
one vote for each acre, or portion thereof, that the landowner owns
within the proposed district which would be subject to the proposed
tax if it were levied at the time of the election.
   (d) Ballots for the special election authorized by subdivision (a)
may be distributed to qualified electors by mail with return postage
prepaid or by personal service by the election official.  The
official conducting the election may certify the proper mailing of
ballots by an affidavit, which shall constitute conclusive proof of
mailing in the absence of fraud.  The voted ballots shall be returned
to the election officer conducting the election not later than the
hour specified in the resolution calling the election.  However, if
all the qualified voters have voted, the election may be closed with
the concurrence of the official conducting the election.
53327.  (a) Except as otherwise provided in this chapter, the
provisions of law regulating elections of the local agency that calls
an election pursuant to this chapter, insofar as they may be
applicable, shall govern all elections conducted pursuant to this
chapter.  Except as provided in subdivision (b), there shall be
prepared and included in the ballot material provided to each voter
an impartial analysis pursuant to Section 9160, 9280, or 9500 of the
Elections Code, and arguments and rebuttals, if any, pursuant to
Sections 9162 to  9167, inclusive, and 9190 of the Elections Code or
pursuant to Sections 9281 to 9287, inclusive, and 9295 of the
Elections Code, or pursuant to Sections 9501 to  9507, inclusive, of
the Elections Code, or pursuant to other provisions of law applicable
to other special districts as appropriate.
   (b) If the vote is to be by the landowners of the proposed
district, analysis and arguments may be waived with the unanimous
consent of all the landowners and shall be so stated in the order for
the election.  When the local agency is a school district and the
vote is to be by the landowners of the proposed district, the
legislative body of the school district may authorize an official of
the district to conduct the election, including preparation of
analysis and compilation of arguments.
53327.5.  (a) If the election is to be conducted by mail ballot, the
election official conducting the election shall provide ballots and
election materials pursuant to subdivision (d) of Section 53326 and
Section 53327, together with all supplies and instructions necessary
for the use and return of the ballot.
   (b) The identification envelope for return of mail ballots used in
landowner elections shall contain the following:
   (1) The name of the landowner.
   (2) The address of the landowner.
   (3) A declaration, under penalty of perjury, stating that the
voter is the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears on
the identification envelope.
   (4) The printed name and signature of the voter.
   (5) The address of the voter.
   (6) The date of signing and place of execution of the declaration
described in paragraph (3).
   (7) A notice that the envelope contains an official ballot and is
to be opened only by the canvassing board.
53328.  (a) Except as otherwise provided in subdivision (b), after
the canvass of returns of any election pursuant to Section 53326, the
legislative body may levy any special tax as specified in the
resolution of formation adopted pursuant to subdivision (a) of
Section 53325.1 within the territory of the district if two-thirds of
the votes cast upon the question of levying the tax are in favor of
levying that tax.
   (b) A special tax may be levied to provide the services specified
in subdivision (c) of Section 53313 only if  at least 12 persons, who
need not necessarily be the same 12 persons, have been registered to
vote within the territory of the proposed community facilities
district for each of the 90 days preceding the close of the protest
hearing and if two-thirds of the votes cast upon the question of
levying the tax are in favor of levying the tax.  The limitation
contained in this subdivision does not apply to any election subject
to subdivision (c) of Section 53326 where only the landowners have
the right to vote on a proposed special tax.
53328.3.  Upon a determination by the legislative body that the
requisite two-thirds of votes cast in an election held pursuant to
Section 53326 are in favor of levying the special tax, the clerk of
the legislative body shall record the notice of special tax lien
provided for in Section 3114.5 of the Streets and Highways Code,
whereupon the lien of the special tax shall attach as provided in
Section 3115.5 of the Streets and Highways Code.  The notice of
special tax lien shall be recorded in the office of the county
recorder in each county in which any portion of the district is
located.
53328.5.  Division 4.5 (commencing with Section 3100) of the Streets
and Highways Code applies with respect to any  proceedings
undertaken pursuant to this chapter.  This chapter is a "principal
act" as that term is defined in Section 3100 of the Streets and
Highways Code.  In all cases in which special taxes have been
approved by the qualified electors pursuant to this chapter prior to
January 1, 1989, the legislative body may direct the clerk of the
legislative body to impose a lien for the special tax on nonexempt
real property within the district by performing the filings required
by Division 4.5 (commencing with Section 3100) of the Streets and
Highways Code, and the county recorder shall accept those filings and
may charge the clerk a fee for recording and indexing those
documents pursuant to Section 3116 of the Streets and Highways Code.
The failure of the clerk or recorder to perform the filings shall
not subject the local agency or any of its officers or employees to
civil liability.
53329.  After the canvass of returns of any election conducted
pursuant to Section 53326, the legislative body shall take no further
action with respect to levying the specified special tax within the
community facilities district for one year from the date of the
election if the question of levying that specified special tax fails
to receive approval by two-thirds of the votes cast upon the
question.
53329.5.  (a) The owners of three-fourths of the area of lands taxed
or liable to be taxed, or their agents (who shall declare under
penalty of perjury that they are such owners or agents), shall not be
required to present sealed proposals or bids when the legislative
body calls for bids preparatory to letting a contract or contracts to
do work financed pursuant to this chapter, but may, within 10 days
after  the publication of the notice of the award of the contract,
elect to perform the work and enter into a written contract to do the
whole work at prices not exceeding the prices specified in the bid
of the bidder to whom the contract was awarded, and all work done
under the contract shall be subject to any regulations as may be
prescribed by the legislative body.
   (b) If the owners elect not to perform the work and not to enter
into a written contract for that work within 10 days of publication
of the notice of the award of the contract, or to commence the work
within 15 days after the date of the written contract entered into
between the owners and the legislative body, and to continue that
work with diligence to completion, as determined by the legislative
body, a contract shall be entered into by the legislative body with
the original bidder to whom the contract was awarded at the prices
specified in his or her bid.
   (c) If, in the opinion of the legislative body, the public
interest will not be served by allowing the property owners to enter
into a contract in accordance with subdivision (a), the legislative
body may so provide in the resolution of intention adopted pursuant
to Section 53321.