California Capital City Downtown Revitalization Act.

Senator Ashby's California Capital City Downtown Revitalization Act proposes new financing mechanisms for infrastructure development in downtown Sacramento, allowing local governments to allocate sales and use tax revenues to enhanced infrastructure financing districts within specific geographic boundaries.

The legislation permits cities and counties to direct local sales tax revenues toward infrastructure projects in an area bounded by the Sacramento River, American River, Broadway, and Alhambra Boulevard. These allocations must align with the original purposes of the taxes and, for Bradley-Burns sales tax revenues, require consent from affected transportation agencies to ensure existing operations and planned projects remain unimpaired. The bill explicitly prohibits the reallocation of voter-approved special-purpose tax revenues to unrelated projects.

Under the act's provisions, local authorities can issue infrastructure bonds without voter approval, departing from current requirements. The legislation mandates decennial reviews of infrastructure financing plans to verify ongoing compliance with statutory requirements. The bill's findings cite downtown Sacramento's unique circumstances as justification for these specialized financing tools, which supplement existing enhanced infrastructure financing district mechanisms.