2005 California Government Code Sections 53340-53344.4 Article 4. Procedures for Levying

53340.  (a) After a community facilities district has been created
and authorized to levy specified special taxes pursuant to Article 2
(commencing with Section 53318), Article 3 (commencing with Section
53330), or Article 3.5 (commencing with Section 53339), the
legislative body may, by ordinance, levy the special taxes at the
rate and apportion them in the manner specified in the resolution
adopted pursuant to Article 2 (commencing with Section 53318),
Article 3 (commencing with Section 53330), or Article 3.5 (commencing
with Section 53339).
   (b) The legislative body may provide, by resolution, for the levy
of the special tax in the current tax year or future tax years at the
same rate or at a lower rate than the rate provided by ordinance, if
the resolution is adopted and a certified list of all parcels
subject to the special tax levy including the amount of the tax to be
levied on each parcel for the applicable tax year, is filed by the
clerk or other official designated by the legislative body with the
county auditor on or before the 10th day of August of that tax year.
The clerk or other official designated by the legislative body may
file the certified list after the 10th of August but not later than
the 21st of August if the clerk or other official obtains prior
written consent of the county auditor.
   (c) Properties or entities of the state, federal, or other local
governments shall, except as otherwise provided in Section 53317.3,
be exempt from the special tax.  No other properties or entities are
exempt from the special tax unless the properties or entities are
expressly exempted in the resolution of formation to establish a
district adopted pursuant to Section 53325.1 or in a resolution of
consideration to levy a new special tax or special taxes or to alter
the rate or method of apportionment of an existing special tax as
provided in Section 53334.
   (d) The proceeds of any special tax may only be used to pay, in
whole or part, the cost of providing public facilities, services, and
incidental expenses pursuant to this chapter.
   (e) The special tax shall be collected in the same manner as
ordinary ad valorem property taxes are collected and shall be subject
to the same penalties and the same procedure, sale, and lien
priority in case of delinquency as is provided for ad valorem taxes,
unless another procedure has been authorized in the resolution of
formation establishing the district and adopted by the legislative
body.
   (f) (1) Notwithstanding subdivision (e), the legislative body of
the district may waive delinquency penalties and redemption penalties
if it makes all of the following determinations:
   (A) The waivers shall apply only to parcels delinquent at the time
of the determination.
   (B) The waivers shall be available only with respect to parcels
for which all past due and currently due special taxes and all other
costs due are paid in full within a limited period of time specified
in the determination.
   (C) The waivers shall be available only with respect to parcels
sold or otherwise transferred to new owners unrelated to the owner
responsible for the delinquency.
   (D) The waivers are in the best interest of the debtholders.
   (2) The charges with penalties to be waived shall be removed from
the tax roll pursuant to Section 53356.2 and local administrative
procedures, and any distributions made to the district prior to
collection pursuant to Chapter 3 (commencing with Section 4701) of
Part 8 of Division 1 of the Revenue and Taxation Code shall be repaid
by the district prior to granting the waiver.
   (g) The tax collector may collect the special tax at intervals as
specified in the resolution of formation, including intervals
different from the intervals at which the ordinary ad valorem
property taxes are collected.  The tax collector may deduct the
reasonable administrative costs incurred in collecting the special
tax.
   (h) All special taxes levied by a community facilities district
shall be secured by the lien imposed pursuant to Section 3115.5 of
the Streets and Highways Code.  This lien shall be a continuing lien
and shall secure each levy of special taxes.  The lien of the special
tax shall continue in force and effect until the special tax
obligation is prepaid, permanently satisfied, and canceled in
accordance with Section 53344 or until the special tax ceases to be
levied by the legislative body in the manner provided in Section
53330.5.  If any portion of a parcel is encumbered by a lien pursuant
to this chapter, the entirety of the parcel shall be encumbered by
that lien.
53340.1.  (a) If a public agency owning property, including property
held in trust for any beneficiary, which is exempt from a special
tax pursuant to Section 53340 grants a leasehold or other possessory
interest in the property to a nonexempt person or entity, the special
tax shall, notwithstanding Section 53340, be levied on the leasehold
or possessory interest and shall be payable by the owner of the
leasehold or possessory interest.
   (b) When entering into a lease or other written contract creating
a possessory interest that may be subject to taxation, pursuant to
subdivision (a), the public agency shall include, or cause to be
included, in the contract a statement that the property interest may
be subject to special taxation pursuant to this chapter, and that the
party in whom the possessory interest is vested may be subject to
the payment of special taxes levied on the interest.  Failure to
comply with the requirements of this section shall not, however,
invalidate the contract.
   The requirement of this subdivision shall not apply to leases
entered into prior to January 1, 1988.
   (c) If the special tax on any possessory interest levied pursuant
to subdivision (a) is unpaid when due, the tax collector may use
those collection procedures which are available for the collection of
assessments on the unsecured roll.
53340.2.  (a) The legislative body levying the special tax shall
designate an office, department, or bureau of the local agency which
shall be responsible for annually preparing the current roll of
special tax levy obligations by assessor's parcel number on nonexempt
property within the district and which will be responsible for
estimating future special tax levies.  The designated office,
department, or bureau shall be the same office, department, or bureau
that prepares the "NOTICE OF ASSESSMENT" required by Section 53754.
If notice is required under both this section and Section 53754, the
notices shall, to the extent feasible, be combined into a single
notice document.  The designated office, department, or bureau shall
establish procedures to promptly respond to inquiries concerning
current and future estimated tax liability.  Neither the designated
office, department, or bureau, nor the legislative body, shall be
liable if any estimate of future tax liability is inaccurate, nor for
any failure of any seller to request a Notice of Special Tax or to
provide the notice to a buyer.
   (b) For purposes of enabling sellers of real property subject to
the levy of special taxes to satisfy the notice requirements of
subdivision (b) of Section 1102.6 of the Civil Code, the designated
office, department, or bureau shall furnish a Notice of Special Tax
to any individual requesting the notice or any owner of property
subject to a special tax levied by the local agency within five
working days of receiving a request for such notice.  The local
agency may charge a reasonable fee for this service not to exceed ten
dollars ($10.00).
   (c) The notice shall contain the heading "NOTICE OF SPECIAL TAX"
in type no smaller than 8-point type, and shall be in substantially
the following form.  The form may be modified as needed to clearly
and accurately describe the tax structure and other characteristics
of districts created before January 1, 1993, or to clearly and
accurately consolidate information about the tax structure and other
characteristics of two or more districts that levy or are authorized
to levy special taxes with respect to the lot, parcel, or unit.  The
notice shall be completed by the designated office, department, or
bureau except for the signatures and date of signing:
      NOTICE OF SPECIAL TAX
      COMMUNITY FACILITIES DISTRICT NO. ______
COUNTY OF ______, CALIFORNIA
      TO:  THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS:
________________________________   ________________________________
      THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS
PROPERTY.
   This property is subject to a special tax, which is in addition to
the regular property taxes and any other charges and benefit
assessments on the parcel.  This special tax may not be imposed on
all parcels within the city or county where the property is located.
If you fail to pay this tax when due each year, the property may be
foreclosed upon and sold.  The tax is used to provide public
facilities or services that are likely to particularly benefit the
property.  YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE PUBLIC
FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING
WHETHER TO BUY THIS PROPERTY.
   (2) The maximum special tax which may be levied against this
parcel to pay for public facilities is $____ during the ____-__ tax
year.  This amount will increase by __ percent per year after that
(if applicable).  The special tax will be levied each year until all
of the authorized facilities are built and all special tax bonds are
repaid, but in any case not after the ____-__ tax year.
   An additional special tax will be used to pay for ongoing
services, if applicable.  The maximum amount of this tax is ____
dollars ($____) during the ____-__ tax year.  This amount may
increase by ____, if applicable, and may be levied until the ____-__
tax year (or forever, as applicable).
   (3) The authorized facilities which are being paid for by the
special taxes, and by the money received from the sale of bonds which
are being repaid by the special taxes, are:
   These facilities may not yet have all been constructed or acquired
and it is possible that some may never be constructed or acquired.
   In addition, the special taxes may be used to pay for costs of the
following services:
   YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND WHICH
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW
THE PROCEEDS OF THE TAX WILL BE USED, FROM THE ________ (name of
jurisdiction) BY CALLING ______ (telephone number).  THERE MAY BE A
CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST
OF PROVIDING THE DOCUMENT.
   I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS
NOTICE.  I (WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO
PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE
OWNER OR AGENT SELLING THE PROPERTY.  THE CONTRACT MAY BE TERMINATED
WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE
DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF
THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY.
DATE: ____________
______________________
______________________
53340.3.  At the request of the legislative body, the tax collector
may set forth on the tax bill descriptive information provided by the
legislative body to identify each public entity receiving portions
of the revenue from the special tax levied pursuant to this chapter.
53340.5.  If the legislative body of the local agency levying the
special taxes is not the legislative body of a county and those
special taxes are collected by county officials, the county auditor
shall, at the close of each tax collecting period, promptly provide
the auditor of the local agency levying the taxes a detailed report
showing the amounts of special taxes, interest, and penalties
collected for the district and from which property those revenues
were collected, identifying any properties which are delinquent and
the amount and length of time in arrears, and a statement of the
percentage of the taxes retained by the auditor for the expenses
incurred in making the collections and the report.
53340.7.  If the legislative body supplies to the tax collector each
year a listing of the specific amount due from each parcel within
the district, and the tax collector bills for and collects the tax
without reference to tax rate areas, then Sections 54900 to 54916.5,
inclusive, are not applicable to the formation of, change in the
boundaries of, annexation to, or existence of, community facilities
districts created pursuant to this chapter and there is no
requirement that the statement and map described in these sections be
filed with the State Board of Equalization or the county assessor.
This section shall not prevent the voluntary filing of such a
statement or map.  This section does not constitute a change in, but
is declaratory of, the existing law.
53341.  Any action or proceeding to attack, review, set aside, void,
or annul the levy of a special tax or an increase in a special tax
pursuant to this chapter shall be commenced within 30 days after the
special tax is approved by the voters.  Any appeal from a final
judgment in that action or proceeding shall be perfected within 30
days after the entry of judgment.
53341.5.  (a) If a lot, parcel, or unit of a subdivision is subject
to a special tax levied pursuant to this chapter, the subdivider, his
or her agent, or representative, shall not sell, or lease for a term
exceeding five years, or permit a prospective purchaser or lessor to
sign a contract of purchase or a deposit receipt or any
substantially equivalent document in the event of a lease with
respect to the lot, parcel, or unit, or cause it to be sold or leased
for a term exceeding five years, until the prospective purchaser or
lessee of the lot, parcel, or unit has been furnished with and has
signed a written notice as provided in this section.  The notice
shall contain the heading "NOTICE OF SPECIAL TAX" in type no smaller
than 8-point type, and shall be in substantially the following form.
The form may be modified as needed to clearly and accurately
describe the tax structure and other characteristics of districts
created before January 1, 1993, or to clearly and accurately
consolidate information about the tax structure and other
characteristics of two or more districts that levy or are authorized
to levy special taxes with respect to the lot, parcel, or unit:
      NOTICE OF SPECIAL TAX
COMMUNITY FACILITIES DISTRICT NO.___
COUNTY OF ____, CALIFORNIA
      TO:  THE PROSPECTIVE PURCHASER OF THE
REAL PROPERTY KNOWN AS:
  _____________________________________________________________
  _____________________________________________________________
THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR ENTERING INTO A CONTRACT
TO PURCHASE THIS PROPERTY.  THE SELLER IS REQUIRED TO GIVE YOU THIS
NOTICE AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE THAT YOU HAVE
RECEIVED AND READ A COPY OF THIS NOTICE.
   (1) This property is subject to a special tax, which is in
addition to the regular property taxes and any other charges, fees,
special taxes, and benefit assessments on the parcel.  It is imposed
on this property because it is a new development, and may not be
imposed generally upon property outside of this new development.  If
you fail to pay this tax when due each year, the property may be
foreclosed upon and sold.  The tax is used to provide public
facilities or services that are likely to particularly benefit the
property. YOU SHOULD TAKE THIS TAX AND THE BENEFITS FROM THE
FACILITIES AND SERVICES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING
WHETHER TO BUY THIS PROPERTY.
   (2) The maximum special tax which may be levied against this
parcel to pay for public facilities is $______ during the ____-__ tax
year.  This amount will increase by __ percent per year after that
(if applicable).  The special tax will be levied each year until all
of the authorized facilities are built and all special tax bonds are
repaid, but in any case not after the ____-__ tax year.  An
additional special tax will be used to pay for ongoing service costs,
if applicable.  The maximum amount of this tax is ____ dollars
($____) during the ____-__ tax year.  This amount may increase by
____, if applicable, and that part may be levied until the ____-__
tax year (or forever, as applicable).
   (3) The authorized facilities which are being paid for by the
special taxes, and by the money received from the sale of bonds which
are being repaid by the special taxes, are:
   These facilities may not yet have all been constructed or acquired
and it is possible that some may never be constructed or acquired.
   In addition, the special taxes may be used to pay for costs of the
following services:
   YOU MAY OBTAIN A COPY OF THE RESOLUTION OF FORMATION WHICH
AUTHORIZED CREATION OF THE COMMUNITY FACILITIES DISTRICT, AND WHICH
SPECIFIES MORE PRECISELY HOW THE SPECIAL TAX IS APPORTIONED AND HOW
THE PROCEEDS OF THE TAX WILL BE USED, FROM THE ____ (name of
jurisdiction) BY CALLING ____ (telephone number).  THERE MAY BE A
CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE REASONABLE COST OF
PROVIDING THE DOCUMENT.
I (WE) ACKNOWLEDGE THAT I (WE) HAVE READ THIS NOTICE AND RECEIVED A
COPY OF THIS NOTICE PRIOR TO ENTERING INTO A CONTRACT TO PURCHASE OR
DEPOSIT RECEIPT WITH RESPECT TO THE ABOVE-REFERENCED PROPERTY.  I
(WE) UNDERSTAND THAT I (WE) MAY TERMINATE THE CONTRACT TO PURCHASE OR
DEPOSIT RECEIPT WITHIN THREE DAYS AFTER RECEIVING THIS NOTICE IN
PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY
GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER, SUBDIVIDER,
OR AGENT SELLING THE PROPERTY.
  DATE: _______________________      _____________________________
  _____________________________      _____________________________
  _____________________________      _____________________________
   (b) "Subdivision," as used in subdivision (a), means improved or
unimproved land that is divided or proposed to be divided for the
purpose of sale, lease, or financing, whether immediate or future,
into two or more lots, parcels, or units and includes a condominium
project, as defined by Section 1350 of the Civil Code, a community
apartment project, a stock cooperative, and a limited-equity housing
cooperative, as defined in Sections 11004, 11003.2, and 11003.4,
respectively, of the Business and Professions Code.
   (c) The buyer shall have three days after delivery in person or
five days after delivery by deposit in the mail of any notice
required by this section, to terminate his or her agreement by
delivery of written notice of that termination to the owner,
subdivider, or agent.
   (d) The failure to furnish the notice to the buyer or lessee, and
failure of the buyer or lessee to sign the notice of a special tax,
shall not invalidate any grant, conveyance, lease, or encumbrance.
   (e) Any person or entity who willfully violates the provisions of
this section shall be liable to the purchaser of a lot or unit which
is subject to the provisions of this section, for actual damages, and
in addition thereto, shall be guilty of a public offense punishable
by a fine in an amount not to exceed five hundred dollars ($500).  In
an action to enforce such liability or fine, the prevailing party
shall be awarded reasonable attorney's fees.
53342.  For any community facilities district or zone thereof, a
legislative body may fix and collect charges in the same manner  as
for miscellaneous extended services in county service areas.
53343.  Any charges collected pursuant to this chapter may only be
used for facilities and services authorized by this chapter.
53343.1.  For any community facilities district formed after January
1, 1992, the community facilities district shall, prepare, if
requested by a person who resides in or owns property in the
district, within 120 days after the last day of each fiscal year, a
separate document titled an "Annual Report."  The district may charge
a fee for the report not exceeding the actual costs of preparing the
report.  The report shall include the following information for the
fiscal year:
   (a) The amount of special taxes collected for the year.
   (b) The amount of other moneys collected for the year and their
source, including interest earned.
   (c) The amount of moneys expended for the year.
   (d) A summary of the amount of moneys expended for the following:
   (1) Facilities, including property.
   (2) Services.
   (3) The costs of bonded indebtedness.
   (4) The costs of collecting the special tax under Section 53340.
   (5) Other administrative and overhead costs.
   (e) For moneys expended for facilities, including property, an
identification of the categories of each type of facility funded with
amounts expended in each category, including the total percentage of
the cost of each type of facility that was funded with bond proceeds
or special taxes.
   (f) For moneys expended for services, an identification of the
categories of each type of service funded with amounts expended in
each category, including the total percentage of the cost of each
type of service that was funded with bond proceeds or special taxes.
   (g) For moneys expended for other administrative costs, an
identification of each of these costs.
   (h) A certification and explanation by the district of how the
moneys described in subdivisions (d), (e), (f), and (g) comply with
Section 53343.
   The Annual Report shall contain references to the relevant
sections of the resolution of formation of the district so that
interested persons may confirm that bond proceeds and special taxes
are being used for authorized purposes.  The annual report shall be
made available to the public upon request.
53344.  In the event that the legislative body has specified
conditions pursuant to Section 53321 under which the obligation to
pay the special tax identified therein may be prepaid and permanently
satisfied, and if the special tax is so prepaid and permanently
satisfied as to a particular parcel of land, the legislative body
shall prepare and record in the office of the county recorder of the
county in which the parcel of land is located, and the county
recorder shall accept for recordation, a Notice of Cancellation of
Special Tax Lien as to that parcel.  The Notice of Cancellation of
Special Tax Lien shall identify with particularity the special tax
which has been prepaid and permanently satisfied, shall state the
book and page number in the records of the county recorder where the
Notice of Special Tax Lien being cancelled is recorded, shall contain
the legal description and assessor's parcel number of the particular
parcel of land subject to the lien, and shall contain the name of
the owner of record of the parcel.  The recorder shall mail the
original Notice of Cancellation of Special Tax Lien to the owner of
the property after recording the document.  The legislative body may
specify a charge for the preparation and recordation of this notice.
53344.1.  (a) The legislative body may provide in the resolution of
intention or the resolution of consideration, and in documents
setting forth the rights of the debtholders that it shall reserve to
itself, the right and authority to allow any interested owner of
property within the district, subject to the provisions of this
section and to those conditions as it may impose, and any applicable
prepayment penalties as prescribed in the bond indenture or
comparable instrument or document, to tender to the district
treasurer in full payment or part payment of any installment of the
special taxes or the interest or penalties thereon which may be due
or delinquent, but for which a bill has been received, any bond or
other obligation secured thereby, the bond or other obligation to be
taken at par and credit to be given for the accrued interest shown
thereby computed to the date of tender.  The district treasurer shall
thereupon cancel the bond debt and shall cause proper credit
therefor to be entered on the records of the district and in the
office of the auditor and tax collector.  If the legislative body
agrees to allow bond tenders pursuant to this section or to Section
53356.8, the legislative body may, at its discretion, agree to
distribute or direct its trustee or other agent to distribute by any
means an offer to purchase bonds or other related inquiry to the
holders of the bonds of the district, at the expense of the person
requesting the mailing.  Neither the legislative body, nor any of its
officers, agents, or trustees shall be liable in any way for that
distribution.
   (b) The provisions of this subdivision apply to any tender of
bonds pursuant to this section by an owner of property within the
district who is delinquent in paying special taxes levied by this
district when due.  Bonds may be tendered pursuant to this
subdivision only after all of the following conditions have been
satisfied:
   (1) The delinquent lot or parcel has been offered for sale as a
result of a foreclosure judgment and the minimum price required to be
paid for the lot or parcel was not received.
   (2) The bonds to be tendered to the district were obtained by the
property owner only after their prior owner was presented with a
tender offer or solicitation as defined in this subdivision.
   (A) For purposes of this subdivision, a "tender offer" or
"solicitation" is a solicitation by any person or that person's agent
by offering circular, memoranda, tender, or solicitation, or any
other document or written, oral, or electronic communication for the
purchase of the bonds from their then current owner.  A person
includes a natural person, corporation, company, partnership, limited
liability company, limited liability partnership, association, or
any other entity and a "tendering party" includes any person making a
tender offer for bonds.
   (B) Any tender offer or solicitation shall include all material
information as required under federal and state securities laws and
shall also include the following information, to the extent
applicable:
   (i) The name of the tendering party.
   (ii) An individual who can be contacted to provide further
information with respect to the tender.
   (iii) The current holdings of bonds of the district by the
tendering party and its affiliates.
   (iv) The total face amount of the bonds being solicited.
   (v) The price or method of determining the price per one thousand
dollars ($1,000) in bonds being offered by the tendering party.
   (vi) Whether the tendering party or any person affiliated with or
related to the tendering party, or any employee, agent, or
representative of the tendering party, is a property owner within the
district that issued the bonds.
   (vii) Whether the present intentions of the tendering party are to
use the bonds for payment of special taxes or the purchase of
property at a foreclosure sale pursuant to this section or Section
53356.8.  This statement of present intentions shall not be construed
to be binding on the tendering party.
   (viii) The status of the bond redemption fund, construction fund,
reserve fund, and any other funds of the district, and the special
tax delinquency rate of the district, all of which data shall be the
most recent available from the district and, in any event, shall
apply to the state of the funds after the most recent payment of
principal and interest on the bonds. The district shall provide the
necessary data to the property owner within 10 days of receiving a
written request and may charge a reasonable fee not to exceed its
actual costs of providing the data.  The district shall
simultaneously release the same information to the general public.
The property shall also provide the percentage of the delinquency
attributable to the tendering party or any person affiliated with or
related to the tendering party, or any employee, agent, or
representative of the tendering party, for each of the three most
recent fiscal years.
   (ix) If the tendering party owns or leases property in the
district that issued the bonds, the development plans for that
property and an update on the current status of development of that
property and of any zoning, planning, or other permits or approvals
needed for development of the property to proceed.
   (x) Any other material information available to the tendering
party and not generally available to the public that would
significantly affect the market value of the bonds of the district.
   (C) The tendering party shall notify the legislative body of his
or her intent to make a tender offer or solicitation at least
simultaneously with making any offer or solicitation.
   (D) The tendering party shall provide a copy of the solicitation
to the Department of Corporations prior to five working days after
notifying the legislative body pursuant to subparagraph (C).
   (3) The tendering property owner provides the legislative body
with a negative assurance from counsel representing the property
owner that no misleading or other information has come to the opining
party's attention after reasonable investigation, that would lead
the party providing the negative assurance to believe that the tender
was in violation of federal or state securities laws.
   (4) The tendering property owner delivers to the legislative body
of the district that issued the bonds subject to the tender, a
certificate to the effect that the tender information is accurate in
all material respects and does not omit to state a material fact
necessary in order to make the statements included in the tender
information not misleading, except that the certificate need not
provide any assurances as to the accuracy of the information as to
the bond fund balances and tax payment information provided by the
district.
   (c) The provisions of this subdivision apply to any tender of
bonds pursuant to this section by any owner of property within the
district who is not delinquent in paying special taxes on any
property within the district.  A person subject to this subdivision
shall be deemed to be a person whose relationship to the issuer may
give him or her access, directly or indirectly, to material
information about the issuer not generally available to the public,
and the provisions of Section 25402 of the Corporations Code apply to
any purchase or sale of securities by that person in connection with
the tender transaction.  For purposes of this subdivision, the
"issuer" includes the district, the local agency that created the
district, and any owner of property within the district.  At any time
prior to tendering bonds to the district pursuant to this section,
any person subject to this subdivision shall deliver to the
legislative body of the district a certificate that he or she has
complied with this subdivision and applicable federal and state
securities laws.
53344.2.  (a) Each legislative body of a district may, subject to
the provisions set forth below, declare a "special tax penalties
amnesty program" on or before December 31, 1998.
   (b) A special tax penalties amnesty program may be declared only
after the legislative body makes the following findings at a public
hearing for which notice has been provided pursuant to Section 6061
at least 20 days prior to the date of the hearing:
   (1) That the total dollar amount of special tax delinquencies, not
including delinquency penalties and redemption penalties, in the
district has been equal to or greater than 10 percent of the total
special tax levy in each of the two most recent tax years.
   (2) At least one parcel within the district has been offered for
sale at a legally noticed foreclosure proceeding conducted in
accordance with this article and no minimum bids were received.
   (3) The special tax penalties amnesty program may result in
special taxes being paid for the benefit of the debtholders prior to
when these taxes are likely to be recovered using available remedies.
   (c) In addition to the notice required pursuant to subdivision
(b), the legislative body shall provide notice of the hearing to the
underwriter or underwriters of any bonds of the district by
first-class mail at least 20 days before the date of the hearing.
   (d) The special tax penalties amnesty program shall begin and end
on a date certain and shall not extend for a period of more than 60
days.
   (e) Notice of the special tax penalties amnesty program shall be
published in a newspaper of general circulation published in the area
of the district at least 30 days prior to the special tax penalties
amnesty deadline.
   (f) The notice shall be mailed to all property owners at their
address as it appears on the last secured roll at least 30 days prior
to the beginning of the special tax penalties amnesty period.
   (g) The notice required in subdivisions (e) and (f) above shall
contain at a minimum the following:
   (1) The name and telephone number of the person representing the
district who may be contacted to determine the amount due on any
parcel if paid in accordance with the program.
   (2) The method and place of payment.
   (3) The deadline for the program and for making the payment.
   (4) A statement in bold print that this program expires on the
payment deadline date and there will be no additional programs absent
the authorization of the Legislature and the local legislative body.
   (5) The percentage or maximum amount of penalties and interest
that may be waived on any parcel.
   (h) The special tax penalties amnesty program shall provide that
upon payment of (1) all past due special taxes, (2) administrative
costs including costs to remove the special taxes from the tax rolls,
regular administrative costs, and fees associated with establishing
and administering the special tax penalties amnesty program, and (3)
fees and expenses of any foreclosure and sale proceedings, including
the fees and expenses of foreclosure counsel, by the stated deadline
the district shall waive some or all of the delinquency penalties and
redemption penalties incurred with respect to those special taxes.
The percentage or maximum amount of penalties and interest waived
shall be in the legislative body's discretion.  The charges with
penalties to be waived shall be removed from the tax roll pursuant to
Section 53356.2 and local administrative procedures, and any
distributions made to the district prior to collection pursuant to
Chapter 3 (commencing with Section 4701) of Part 8 of Division 1 of
the Revenue and Taxation Code shall be repaid by the district prior
to granting the waiver.
53344.4.  Any district preparing a report pursuant to Section
53343.1 shall not be required to comply with Section 50075.3.