Enhanced infrastructure financing districts: California Capital City Downtown Revitalization Act.

Removed provisions allowing the City or County of Sacramento to allocate local sales and use taxes (Bradley-Burns) or transactions and use taxes to the downtown revitalization district, including all associated conditions such as transportation agency consent and consistency with tax purposes.

The Sacramento-specific section (53398.75.8) now references state funds acceptance 'pursuant to Section 53398.75' rather than having its own standalone authorization, tying the district's ability to accept state funds to the newly amended general provision.

Removed the provision that bonds issued by the California Capital City Downtown Revitalization District could be issued without voter approval, reverting to the standard voter approval requirement for EIFD bonds.

Removed the 10-year compliance requirement that the infrastructure financing plan must ensure the section's requirements are met every 10 years.

Added an amendment to existing Section 53398.75 (the general EIFD tax allocation statute) adding a new subdivision (f) that explicitly lists revenue sources any EIFD may utilize with voter approval, including 'any state funds' as item (11). This applies to all enhanced infrastructure financing districts statewide, not just Sacramento's.

The bill now amends Section 53398.75 in addition to adding Section 53398.75.8, expanding its reach from a single Sacramento-specific statute to also modifying the general EIFD framework used by all districts in California.

The enrolled bill cover page (showing Senate and Assembly passage dates and clerk signatures) was replaced with the standard chaptered law header identifying it as Chapter 769, approved by the Governor on October 13, 2025.

Page headers and footers changed from 'SB 516' to 'Ch. 769' throughout the document, and line wrapping was adjusted to fit the new page format.

In Section 1.5, subdivision (d), the phrase 'community college districts, district, county office of education' was corrected to 'community college district, county office of education,' removing a duplicated word.

The bill header changed from showing amendment dates to showing passage dates for both chambers and adding standard enrolled bill formatting (Secretary of the Senate, Chief Clerk of the Assembly, Governor's receipt block).

The legislative counsel's digest removed the phrase 'as amended' since this is now the final enrolled version. All line breaks and indentation were reformatted to match the enrolled bill layout.

New Section 4 establishes that Section 1.5 of the bill (which incorporates amendments to Government Code Section 53398.75 proposed by both SB 516 and SB 5) will only become operative if: (1) both bills are enacted and effective on or before January 1, 2026, (2) each bill amends Section 53398.75, and (3) SB 516 is enacted after SB 5. If those conditions are met, Section 1 of SB 516 will not become operative.

Section numbering was restructured: the former standalone 'SECTION 1' (amending Section 53398.75) is now labeled 'SEC. 1.5' to reflect that it incorporates SB 5's proposed changes, and the addition of Section 53398.75.8 was renumbered from SEC. 2 to remain SEC. 2 (with the old SEC. 1 removed).

The legislative counsel's digest was updated to remove the phrase 'would authorize the district to accept state funds' from its summary of the bill's effects and added a new paragraph describing the SB 5 coordination mechanism.

The bill was narrowed from authorizing 'a city or county within the downtown Sacramento geographic area' to specifically authorizing only 'the City of Sacramento or the County of Sacramento' to create the district.

The legislative findings were updated from citing 'the unique needs of the downtown Sacramento geographic area' to 'the unique needs of the City and County of Sacramento and the downtown Sacramento geographic area,' explicitly naming both governmental entities.

A new subsection (b) was added formally defining a 'California Capital City Downtown Revitalization District' as an enhanced infrastructure financing district subject to the chapter's provisions.

A new provision allows any affected taxing entity located entirely or in part in the County of Sacramento to opt in to the district pursuant to Section 53398.68, expanding participation beyond just the city or county itself.

A new provision authorizes the district to accept any state funds upon its creation, adding a new source of revenue not present in the introduced version.