Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act.

Senator Ashby's California Capital City Downtown Revitalization Act establishes a specialized infrastructure financing district in downtown Sacramento, bounded by the Sacramento River, American River, Broadway, and Alhambra Boulevard. The legislation authorizes either the City or County of Sacramento to create this district, which operates under existing enhanced infrastructure financing district rules while incorporating additional funding mechanisms.

The bill modifies current infrastructure financing provisions to allow the new district to accept state funds, provided it obtains necessary voter approval and an approved infrastructure financing plan. Taxing entities located wholly or partially within Sacramento County may opt into the district, enabling the allocation of specified property tax revenues toward district projects. These tax allocations include both base-year assessments and incremental increases in property values within the district boundaries.

The legislation maintains existing protections for former redevelopment agency obligations, requiring that any district debt remain subordinate to enforceable redevelopment commitments approved by the Oversight Board and Department of Finance. It preserves current requirements for public hearings and protest procedures before infrastructure financing plans take effect, while establishing clear parameters for revenue distribution between the district and participating taxing entities.