Cal. Streets and Highways Code - SHC § 36520. Section 36520.
A parking and business improvement area may be established as provided in this chapter.
CHAPTER 2. Establishment [36520. - 36529.]
Cal. Streets and Highways Code - SHC 2.
in effectCal. Streets and Highways Code - SHC § 36521. Section 36521.
The city council may establish an area on its own initiative.
Cal. Streets and Highways Code - SHC § 36521.5. Section 36521.5.
A county may not form an area within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form an area within the unincorporated territory of a county, without the consent of the board of supervisors of that county. A city may not form an area within the territorial jurisdiction of another city without the consent of the city council of the other city.
Cal. Streets and Highways Code - SHC § 36522. Section 36522.
Proceedings to establish a parking and business improvement area shall be instituted by the adoption by the city council of a resolution of intention to establish the area. The resolution of intention shall do all of the following:
(a)
State that a parking and business improvement area is proposed to be established pursuant to this chapter and describe the boundaries of the territory proposed to be included in the area and the boundaries of each separate benefit zone to be established within the area. The boundaries of the area may be described by reference to a map on file in the office of the clerk, showing the proposed area.
(b)
State the
name of the proposed area.
(c)
State the type or types of improvements and activities proposed to be funded by the levy of assessments on businesses in the area. The resolution of intention shall specify any improvements to be acquired.
(d)
State that, except where funds are otherwise available, an assessment will be levied annually to pay for all improvements and activities within the area.
(e)
State the proposed method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business.
(f)
State whether new businesses will be exempt from the levy of the assessment, pursuant to Section 36531.
(g)
Fix a time and place for a public hearing on the establishment of the parking and business improvement area and the levy of assessments, which shall be consistent with the requirements of Section 54954.6 of the Government Code.
(h)
State that at the hearing the testimony of all interested persons for or against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities will be heard.
(i)
Describe, in summary, the effect of protests made by business owners against the establishment of the area, the extent of the area, and the furnishing of a specified type of improvement or activity, as provided in Section 36524.
Cal. Streets and Highways Code - SHC § 36523. Section 36523.
Notice of a public hearing held under Section 36524, 36541, 36542, or 36550 shall be given by both of the following:
(a)
Publishing the resolution of intention in a newspaper of general circulation in the city once, for at least seven days before the public hearing.
(b)
Mailing of a complete copy of the resolution of intention by first-class mail to each business owner in the area within seven days of the city council’s adoption of the resolution of intention.
(c)
Notwithstanding subdivision (b), in the case of an area established primarily to promote tourism, a copy of the resolution of intention shall be mailed by first-class mail within seven days of the city council’s adoption of the resolution of intention, to the owner of each business in the area which will be subject to assessment.
Cal. Streets and Highways Code - SHC § 36523.5. Section 36523.5.
Notwithstanding Section 36523, prior to adopting any new or increased assessment, the city council shall give notice pursuant to Section 54954.6 of the Government Code in lieu of publishing notice pursuant to subdivision (a) of Section 36523.
Cal. Streets and Highways Code - SHC § 36524. Section 36524.
(a)
At the public hearing, the city council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made.
(b)
Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.
(c)
Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest.
Cal. Streets and Highways Code - SHC § 36525. Section 36525.
(a)
If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified parking and business improvement area or to levy the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
(b)
If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated.
Cal. Streets and Highways Code - SHC § 36526. Section 36526.
(a)
At the conclusion of the public hearing to establish the area, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments.
(b)
At the public hearing, the city council may only make changes in, to, or from, the boundaries of the proposed parking and business improvement area that will exclude territory which will not benefit from the proposed improvements or activities. However, proposed assessments may only be revised by reducing any or all of them.
(c)
The city council shall not change the boundaries of the area to include any territory that will not, in its judgment, benefit by the improvement or activity. Any addition of territory to the proposed boundaries of the area may be made only upon notice to the owners of the businesses proposed to be added to the area, as provided in Section 36523, and upon a public hearing on the addition of territory, as provided in Section 36524.
Cal. Streets and Highways Code - SHC § 36527. Section 36527.
If the city council, following the public hearing, decides to establish the proposed parking and business improvement area, it shall adopt an ordinance to that effect. The ordinance shall contain all of the following:
(a)
The number, date of adoption, and title of the resolution of intention.
(b)
The time and place where the public hearing was held concerning the establishment of the area.
(c)
A determination regarding any protests received at the public hearing.
(d)
The description of the boundaries of the area and of each separate benefit zone established within the area.
(e)
A statement that a parking and business improvement area has been established and the name of the area.
(f)
A statement that the businesses in the area established by the ordinance shall be subject to any amendments to this part.
(g)
The description of the method and basis of levying the assessments, with a breakdown by classification of businesses if a classification is used.
(h)
A statement that the improvements and activities to be provided in the area will be funded by the levy of the assessments. The revenue from the levy of assessments within an area shall not be used to provide improvements or activities outside the area or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the area.
(i)
A finding that the businesses and the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied. In the case of an area formed to promote tourism, only businesses that benefit from tourist visits may be assessed.
(j)
The time and manner of collecting the assessments.
Cal. Streets and Highways Code - SHC § 36528. Section 36528.
The city council may establish one or more separate benefit zones within the area based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.
Cal. Streets and Highways Code - SHC § 36529. Section 36529.
All provisions of this part applicable to the establishment, modification, or disestablishment of a parking and business improvement area apply to the establishment, modification, or disestablishment of benefit zones. The city council shall, to establish, modify, or disestablish a benefit zone, follow the procedure to establish, modify, or disestablish a parking and business improvement area.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026