AB 15

Bill Subjects

Abstract

Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue among local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. The California Constitution prohibits the Legislature from enacting a statute that modifies the manner of apportioning ad valorem property tax revenues so as to reduce the percentage of the total amount of ad valorem property tax revenues that are collected countywide and allocated among all local agencies, as defined, in a county below the percentage that these agencies would receive under the law in effect on the operative date of that prohibition. The California Constitution authorizes the suspension of that prohibition for a fiscal year, if certain conditions are met, including the condition that a full repayment is made to local agencies in an amount equal to the total amount of revenue losses, including interest, resulting from modifications of ad valorem property tax allocation to local agencies. This bill would generally require the auditor of each county to reduce the amount of ad valorem property tax revenue apportionments to each local agency for the 2009–10 fiscal year by 8% of the total amount of ad valorem property tax revenue apportioned to that local agency in the 2008–09 fiscal year, and would require each county auditor to transfer those revenues to a Supplemental Revenue Augmentation Fund, to be transferred therefrom by the county office of education to the Controller in amounts as directed by the Department of Finance to reimburse the state for costs of providing various services in that county. This bill would require full repayment to local agencies of the reduction amounts, including interest, as determined by the Controller, and would make an appropriation therefor. This bill would authorize the issuer of bonds issued pursuant to provisions of this bill, or any local agency that did not participate in the sale of its right of repayment as provided in this bill, to seek a writ of mandamus exclusively in the California Supreme Court, if full repayment to local agencies has not occurred as of a specified date. The Marks-Roos Local Bond Pooling Act of 1985 authorizes joint powers authorities to, among other things, issue bonds and loan the proceeds to local agencies to finance specified types of projects and programs. In addition, a joint powers authority may purchase, with the proceeds of its bonds or its revenue, a local agency's right to payment of moneys due or to become due to a local agency out of funds payable in connection with vehicle license fees to a local agency pursuant to specified provisions of law, also known as a "VLF receivable," and may pledge, assign, resell, or otherwise transfer any of these receivables for the purpose of securing bonds issued to finance the purchase price of the receivables, subject to specified criteria. This bill would additionally authorize a joint powers authority to purchase, with the proceeds of bonds or its revenue and subject to the same criteria, a local agency's right to receive moneys in repayment of its revenue losses, with interest as provided by law, resulting from the modification of ad valorem property tax revenue allocations described above. This bill would also require the authority to purchase all of these receivables offered for sale by local agencies to the extent that it can sell bonds therefor, and would authorize the authority to impose an administrative fee for the costs of administering the purchase. By modifying the manner in which county auditors apportion ad valorem property tax revenues, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on July 1, 2009. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on July 1, 2009, pursuant to the California Constitution. This bill would declare that it is to take effect immediately as an urgency statute.