36670-36671

STREETS AND HIGHWAYS CODE
SECTION 36670-36671




36670.  (a) Any district established or extended pursuant to the
provisions of this part, where there is no indebtedness, outstanding
and unpaid, incurred to accomplish any of the purposes of the
district, may be disestablished by resolution by the city council in
either of the following circumstances:
   (1) If the city council finds there has been misappropriation of
funds, malfeasance, or a violation of law in connection with the
management of the district, it shall notice a hearing on
disestablishment.
   (2) During the operation of the district, there shall be a 30-day
period each year in which assessees may request disestablishment of
the district. The first such period shall begin one year after the
date of establishment of the district and shall continue for 30 days.
The next such 30-day period shall begin two years after the date of
the establishment of the district. Each successive year of operation
of the district shall have such a 30-day period. Upon the written
petition of the owners of real property or of businesses in the area
who pay 50 percent or more of the assessments levied, the city
council shall pass a resolution of intention to disestablish the
district. The city council shall notice a hearing on
disestablishment.
   (b) The city council shall adopt a resolution of intention to
disestablish the district prior to the public hearing required by
this section. The resolution shall state the reason for the
disestablishment, shall state the time and place of the public
hearing, and shall contain a proposal to dispose of any assets
acquired with the revenues of the assessments levied within the
property and business improvement district. The notice of the hearing
on disestablishment required by this section shall be given by mail
to the property owner of each parcel or to the owner of each business
subject to assessment in the district, as appropriate. The city
shall conduct the public hearing not less than 30 days after mailing
the notice to the property or business owners. The public hearing
shall be held not more than 60 days after the adoption of the
resolution of intention.



36671.  (a) Upon the disestablishment of a district, any remaining
revenues, after all outstanding debts are paid, derived from the levy
of assessments, or derived from the sale of assets acquired with the
revenues, or from bond reserve or construction funds, shall be
refunded to the owners of the property or businesses then located and
operating within the district in which assessments were levied by
applying the same method and basis that was used to calculate the
assessments levied in the fiscal year in which the district is
disestablished. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities
specified in the management district plan.
   (b) If the disestablishment occurs before an assessment is levied
for the fiscal year, the method and basis that was used to calculate
the assessments levied in the immediate prior fiscal year shall be
used to calculate the amount of any refund.