This week, the California Downtown Association (CDA) unveiled new sponsored legislation that would significantly improve the process for the formation and renewal of PBIDs. Assembly-member Richard Bloom (D-Santa Monica) has introduced AB 2890, which provides essential clarification of the Property and Business Improvement District Law of 1994 by providing additional details to help parties comply with the benefit separation requirement.

In 1996 voters passed Proposition 218, which implemented new requirements on PBIDs, and other assessment districts including a condition to specify "special" vs. "general" benefits realized from the assessment. However, the initiative included only a brief definition of the benefits and had no implementation guidance for how engineers are to identify the benefits. This ambiguity has made it difficult for PBIDs to determine what assessments can be charged and has increased the number of lawsuits against the districts.

Ambiguity in published court cases relative to how an engineer should quantify benefits in PBIDs has inspired plaintiffs to challenge districts. While not successful so far, these suits have delayed the implementation of programs and have forced cities, counties, and PBIDs to spend precious resources defending the claims. BIDs who have been sued on the methodology used to calculate special vs. general benefit have experienced success in the courts using the precedence of the Dahms case (Dahms vs. Downtown Pomona PBID (2009). This case provides an inclusive and straightforward definition of special benefits. This bill would essentially codify Dahms and amend the current BID law to include this definition.

AB 2890 will be heard in the Assembly Local Government Committee in mid-April and CDA is calling on our membership to engage in supporting this legislation.

Support Letter – Fundraising Letter – Q&A – Bill Information

For more information about how you can help, don't hesitate to contact Rena Masten Leddy at:

Join the Downtown Reno Partnership, California Downtown Association and IDA for the 2022 West Coast Urban District Forum June 15-17, 2022. This year’s theme, Moving into Recovery, will explore how urban place management organizations are working towards balancing the ever-changing nature of public life in the downtown core. This event will focus on economic development strategies and ways to bring people back through placemaking and activations whether for work or pleasure.