SECTIONS 58950 - California Statutes

GOVERNMENT CODE

SECTION 58950

58950. If territory has been detached from a district and that
detached territory is subject to terms and conditions imposed by the
local agency formation commission pursuant to Section 56886 and those
terms and conditions require that the detached territory continue to
be taxed for the payment of principal and interest on outstanding
bonds of the district, the governing body of the district from which
the territory was detached may absolve and relieve the detached
territory of its annual tax liability as follows:
(a) The district board shall, by resolution, declare its intention
to relieve the detached territory of its annual tax liability for
payment of principal and interest on outstanding district bonds. The
resolution shall describe the detached territory, specify the annual
liability the territory will be relieved of, state the reason or
reasons why the detached territory should be relieved, and fix a
time, date, and place for a public hearing on the proposed relief of
liability.
(b) The district board shall cause notice of the hearing to be
published pursuant to Section 6066 in a newspaper of general
circulation published in the territory of the district and the
detached territory. The notice shall contain all the information
specified in subdivision (a), and in lieu of notice the district
board may cause a copy of the resolution required in subdivision (a)
to be published.
(c) At the time, date, and place stated in the notice, the
district board shall hear and consider all objections or protests to
relieving the detached territory of annual liability for payment of
principal and interest on outstanding district bonds. The hearing may
be continued from time to time. Upon conclusion of the hearing, the
district board shall determine by resolution, whether or not the
detached territory should be relieved and absolved of any future
annual tax liability for the outstanding bonds of the district.
(d) If the district board determines that the detached territory
should be relieved of annual tax liability, it shall cause a copy of
its resolution to be filed pursuant to Section 54902 with the Board
of Equalization and the county assessor of the county in which the
territory is located. The detached territory shall be relieved and
absolved of the annual tax liability for outstanding district bonds
imposed by the local agency formation commission in the year next
succeeding adoption of the resolution when assessments or taxes are
to be levied for payment of the principal and interest on the bonds.
Nothing in this section shall be construed as in any way limiting
the power of a bondholder to enforce his or her contractual rights
and nothing in this section shall affect the ultimate liability of
that detached territory for the bonded indebtedness of the district
in case of default. This section is intended to provide a means of
relieving territory detached from a district from annual assessments
for the principal and interest on bonded indebtedness when that
territory is no longer receiving the services for which the bonded
indebtedness was incurred.