LEGISLATIVE COUNSEL'S DIGEST
AB 44, as amended, Blakeslee. Improvement Act of 1911: contractual
assessments.
Existing law, the Improvement Act of 1911, authorizes the
legislative body of any public agency, as defined, to determine that
it would be convenient, advantageous, and in the public interest to
designate an area within the public agency, as specified, within
which authorized public agency officials and property owners may
enter into voluntary contractual assessments to finance the
installation of distributed generation renewable energy sources or
energy or water efficiency improvements that are permanently fixed to
real property, as specified. Existing law requires the legislative
body to make these determinations by adopting a resolution indicating
its intention to do so and requires that the resolution include
specified information and directs an appropriate public agency
official to prepare a prescribed report.
This
bill would declare the intent of the Legislature in
regard to the total amount of assessments and taxes on a property as
a result of participation in the contractual assessment program. The
bill would define the term "permanently fixed," for
purposes of financing the installation of distributed generation
renewable energy sources, to include systems that are attached to
specified types of real property pursuant to
an electricity
a power purchase agreement
or lease between the owner of the system and the owner of the assessed
property, if the agreement satisfies prescribed criteria.
This
bill would prohibit a public agency from permitting a
property owner to participate in a contractual assessment
program if the total amount of the assessments and taxes on the
property exceeds 5% of the property's market value, as specified.
This bill would also require the prescribed report to include
criteria for determining the
creditworthiness of a property
owner underwriting requirements , as well as
safeguards to be used to limit the total annual property tax and
assessments on the property.
Comments/questions on AB 44 (Blakeslee): Improvement Act of 1911: contractual assessments.
