AB 622

This bill authorizes two or more municipalities to create a single

multijurisdictional business improvement district and makes several other changes

to the statutes governing business improvement districts (BIDs) and neighborhood

improvement districts (NIDs).

Under current law, upon the receipt of a petition from certain business owners

in a designated area of a municipality, a municipality may create a BID. A BID is

governed by a board, whose members are appointed by the creating municipality's

chief executive officer. The board must adopt an initial operating plan for the BID,

and may make changes to the operating plan each year, subject to the approval of the

municipality's governing body.

Under current law, upon being petitioned to do so by an owner of real property

that is located in the proposed NID, a municipality may create an NID. In general,

an NID is an area within a municipality consisting of parcels that are near to one

another, but not necessarily contiguous, at least some of which are used for

residential purposes and subject to general real estate taxes, and may include

property that is acquired and owned by the NID board. An NID is governed by a

board, whose members are elected. A municipality may adopt an initial operating

plan for the NID, and the board may annually make changes to the operating plan,

subject to the approval of the municipality's governing body.

The creating municipality may impose special assessments on the property in

a BID or an NID, and may appropriate other money to the BID or NID. These funds

must be placed in a segregated account and must be spent on implementing the BID's

or NID's operating plan and paying for certain required audits. Generally, the boards

determine how funds are spent. The creating municipality may also terminate a BID

or an NID by following certain procedures that are specified in the statutes.

Under current law, the state, regional planning commissions, federally

recognized Indian tribes and bands, and local units of government, including

municipalities, counties, school districts, and other special purpose districts, may

enter into intergovernmental cooperation agreements for services or joint exercise

of powers. As part of an intergovernmental cooperation agreement, these units of

government may create a commission to perform the service or exercise the joint

power.

Subject to a number of conditions, this bill authorizes two or more

municipalities to create a single multijurisdictional BID. The conditions include a

requirement that the BID's borders contain contiguous territory in all of the

municipalities that are party to the agreement creating the multijurisdictional BID.

A multijurisdictional BID is governed by a single board whose members are

appointed by the chief executive officers of each of the municipalities that are part

of the multijurisdictional BID and confirmed by the relevant local legislative bodies.

Actions taken by the board that require local legislative body approval, however,