HomeMy WebLinkAbout1993-08-24 - AGENDA REPORTS - STATE LEGISLATION SB 1234 (2)AGENDA REPORT
_
City M ger A prov1��
CONSENT CALENDAR
DATE: August 24, 1993
SUBJECT: State.Legislation SB 1234
DEPARTMENT: City Manager
BACKGROUND
Item to be presented by:
Michael P. Murphy
On March 16, 1993, State Senator Marian Bergeson (R -Newport Beach) introduced SB
1234. This bill proposes to dramatically restructure the current system of
allocating revenues and providing governmental services. SB 1234 passed the
Senate on July 15 and will be heard on August 25 in the Assembly's Local
Government Committee.
The goal of this legislation is to generate serious discussion and reform of the
public service finance structure by sequestering local property taxes and 70% of
state sales taxes, repealing local sales taxes; impounding vehicle license fees
and halting redevelopment projects until new allocation formulas are enacted.
This measure also creates a twelve -member Joint Legislative Committee on
Realignment to evaluate how state and local public services should be provided
and financed. It is likely that the Committee will recommend that cities fund
many of the community-based service programs that are provided by the counties.
These services would likely include prisons, district attorneys, public
defenders, mental health services, and child welfare services.
LOCAL IMPACT
This bill may result in the sequestration of Santa Clarita revenues representing
upward of 702 of the City's operating budget. Santa Clarita may also become
responsible for many programs currently provided by the county. Further, there
will be no local government representation or input on the twelve -member
committee farmed under this legislation. Finally, new doubts and uncertainty
regarding local government financing may further retard economic development at
a time when such efforts are critical.
Oppose SB 1234 and authorize staff to draft opposition letters to our Local
Legislative Delegation, Senator Marian Bergeson, the California League of Cities
and.Members of the Assembly Local Government Committee.
KFE/151
Attachment app�OdC� Agenda Item:
V.
AMENDED IN SENATE JUNE 18, 1993
C SENATE BILL' No. 1234
Introduced by Gemmittee on Budget and l ileal Review
Senator Bergeson
( (Principal coauthor. Assembly Member Isenberg)
March 16, 1993
An aet relating to leeal gevernment revenues; and
deelaring the ergeney thereef; to take effeet immediately: An
act to add Section 33365.5 to the Health and Safety Code, and
to amend Section 97 of, to add Sections 97.10, 6051.01, and
6201.01 to, to repeal and add Section 11005 of, and to repeal
Sections 7202 and 7203 of, the Revenue and Taxation Code,
relating to government financing. ,
LEGISLATIVE COUNSELS DIGEST
SB 1234, as amended, Gemmittee eit Budget and Bisseal
Bevie Bgergeson. Government financing.
ko,v establishes the Edueatienal Revenue
Aagmentatien fund fer ailseatien ei property tam revenues in
a speeified manner.
This hill would state the intent of the 17e&islature to make
the neeesssry stetutery elleltges to implement the Budget filet
of 1993; relative to the Eduestional Revenue Augmentatiee
l`urtd: .
This bill would deekere that it is to take effeet immediately
ae ail urgeney statute.
Misting law, known as the Community Redevelopment
Law,' authorizes, the establishment of redevelopment
agencies in communities to address the effects of blight, as
defined, in those communities.i Existing law establishes the
procedures for a legislative body of city or county to enact
an ordinance to adopt a redevelopment plan for a project
1 area, as defined.
S11 1234 _ 2 _
7'lris bill would provide that, uvhvilhstanclirrg provisions of
evisliug law, rr legislative ICrdy of -2 city or county shall not
enact an ol-dinance to adopt or amend a redevelopment plan
l'or :r project area oar or aller.1alluary 1, 1994, except under
cprrilicd cirej urslauces.
ls.�islint; pioperly- tax L•nv requires the county auditor, if]
each lisVa] }vear, to allocate property tax revenues to.11ocal
jurisdictions pursuant to st��cr. cified formulas and lirvicedures,
ar�r/ 9012crallr• provides llrat each jurisdiction shall be
allocated, in part, an amount equal to the amount ofproperty
fax revenue allocaled to that jurisdiction in the prior fiscal
Year, subject to certain Inorlificalions.
This bill Would revise these allocation provisions by
trrnridirtY, feu• the, 1994-95 fiscal year, that the aulount of
p!off" 13- lav revenge deemed allocated for the prior fiscal
veru to rich jar fsdiction sh,rll be zero and would require that
the :rnrount of revenue not so allocated be deposited in the
Gusx rnrru:nt 1-sgril y Reven re Allocation Fund, which the bill -
11,0111d require to be established in each county.
771r rtxistilk9 Sides and Use. 7nx Law imposest, tax rue the
gross receipts front the sale of, or the storage r, use, or other
c•unsuruplion in this state pf, tangible personal property at
spreilied rates. i
This bill would require that 70% of state sales and use tax
revenues be deposited in the ,Sales and Use Tax Revenue
Account of the Special Slate Sequester Fund,which the bill
would create.
Under the existing BI-10ley-Burns Uniform Local Sales and
Use lies Law, counties and cities are authorized to impose
/acrd salos.wd use tares in conformity with state.sales taxes at
the rale of 1.25%.
This bill n•ould repeal those provisions.
1 rnrler exfslirrlr fan; rcvr"lrruEs from vehicle license fees in
c.rc•css ol'the costs of collection are apportioned to the cities
:nld countfes acconlirrg to .vertain Specified formulas. ,
This bill would repeal that provision, and would insteall
require /hal.reve»ues fi-vin vehicle license fees in excess of.
'!hr casts efcollect iorr he debosilcd ire the Vehicle License Fee
. I rrr n rn t o0bo he Sjrccia157nfv ° S'cgncsler fl trod, irhich would be
('10.rfrd ln' lir bill.,
—3— SB 1234
This bill would specify that it is the Legislature's intent that
no moneys be allocated from the Sales and Use Tax Revenue
Account or the Vehicle License Fee Account until the joint
Legislative Committee on Realignment, which would be
created by the bill, has reported its recommendations and
both houses and the Governor have acted upon its
recommendations.
This bill would provide for the establishment of the Joint
Legislative Committee on Realignment, specify its powers
and duties, and provide for its termination on March 11, 1994.
This bill would also specify legislative findings and
declarations regarding the realignment of fiscal and
Programmatic relationships between the state government
and local agencies to assist in the resolution of the state's fiscal
crisis.
The bill would provide!that specified sections of the bill
would become operative on July 1, j994, unless a later enacted
statute,-whicli'is chaptered before July 1, 1994, deletes or
extends that date.
Vote: % majority. Appropriation: no. Fiscal committee: rte
yes. State -mandated local program: no.
The people of the State of California do enact as folio►►s:
1 SEGFWN 4- It is the intent ofthe begWature in
2 enaeling Fitts get to make the neeemarg stetuk" ehanges
3 to impletnez3t Fite 13trdg yet of 4993; relative to the
4 EdoeatietW Revenue Augmentatieft pund eAftblished
6' Ge� to SeeEieri 9793 of the Revenue artd Miert
7 S33G: & This aet is an urgeneg statute neeessary for
8 the immediate preservatiert of the paWie peaee: health.
9 er mfety within the meanntg of Allele W of the
10 Geastitetiert and shall ge irate Immediate effeet. The faets
12 �eid to make the Ree ff"YY sEatttery ehanes to
13 14 �t the a Aet of 4983 at the earliest passible
15 S� itis nee g"py that "ftet 8 Legislature a fgr et ffnm declares
16 as follows:
SB 1234
`4-
1 (1) The recent repeated annual budget crises have
2 exposed serious problems in the fiscal and programmatic
3 relationships between the state government and local
4 agencies.
5 (2) The current complex web of federal and state
6 mandates, funding sources, and -programmatic
7 relationships are economically fnelrcient, conceal public
8 accountability, and block political responsiveness.
9 (3) The Legislature;and the Governor have generally
10 avoided solving those underlying problems while they
11 struggled with each year's budget. As long as these
12 problems remain unsolved, public 'officials and their
13 constituents have trouble delivering the services needed
14 to protect the public health, safety, and welfare.
15 (4) All parties realize that the current budget process
16. destroys cooperation among governments and produces
17 dysfunctional programs. In short, lurching from crisis. to
18 crisis does not serve Californians' long-term needs.
19 (5) The process of preparing and adopting an annual
20 budget does not create opportunities for solving
21 long-term structural problems. Because this process
22 cannotreformitself, the Legislature must take adramatic
23 step to break the cycle of crisis.
24 (b) In enacting this act, it is the intent - of the
25 Legislature to create an unprecedented set of
26 circumstances that will focus the attention of the
27 Legislature, the Governor, state and local officials, and
28 their constituents on the need to realign the fiscal and
29 programmatic relationships between the state
30 government and local agencies.
31 (c) It is the further intent of the Legislature in
32 enacting this act to create new opportunities to realign
33 the fiscal and progrnmmatic relationships between the
34 state government and local agencies in -time for the
35 1994=95 fiscal year wh7ch begins on July 1, 1994. It is the
36 further intent of the Legislature that the process created
37 by this act shall result in the rational realignment of the
38 fiscal and programmatic relationships between the state
39 government and local ageiicies.
40 SE, C. 2.: Section 33365.5 is added to the Health and
-5— SB 1234'
I Safety Code, to read:
2 33365.5.. (a) Notwithstanding any other provision of
3 this part or Part 1.5 (commencing with Section 34000), a
4 legislative body shall not enact any ordinance to adopt a
5 redevelopment plan for a project area on or after January
6 1, 1994, except as provided in subdivision (c).
7 (b) Notwithstandingany other provision of this part or
8 Part 1.5 (commencing with Section 34000), a legislative
9 body shall not enact 'any • ordinance to amend a
10 redevelopmentplanforaproject9reaonorafterjanuary
11 1, 1994, except as provided in subdivision (c), if the
12 amendment to the plan would do any of the following.•
13 (1) Add new territory to the project area.
14 (2) Increase the limitation on the number ofdollars to
15 be allocated to the redevelopment agency.
16 (3) Increase the time`Ifmit on the establishment of
17 loans, advances, and indebtedness established pursuant
18 to subdivisions (1) and (2) of Section 33333.2.
19 (4) Lengthen • the period during which the
20 redevelopment plan is effective.
21 (5) Merge project areas.
22 (6) Add significant additional capital improvement
23 projects.
24 (c) The prohibition of subdivision *(a) shall not apply
25 if the planning commission has submitted a preliminary
26 plan for the project area to the agency pursuant to
27Section 33325 prior to January 1, 1994. The prohibition of
28 subdivision (b) shall not applyifthe agencyhasprepared
29 and sent to the affected taxing entities a preliminary
30 report pursuant to Section 33344.5 prior to January 1,
31 1994.
32 SEC. 3. Section 97 of the Revenue and Taxation Code
33 is amended to read:
34 97. Except as otherwise provided in Sections 97.01,
'35 97.03, 97.3, 97.10, 97.32, 97.35, and 97.38 for the 1980-81
`36 , fiscal year and each fiscal year thereafter, and subject to.
37 Section 98.6, property tax revenues shall be apportioned
$8 'to each jurisdiction pursuant to this section and Section
39 97.5 by the county auditor, subject to allocation and
,40 payment of funds as provided for in subdivision (b) of
SB
1234 —6=
I
—7— SB 1234
1
Section 33670 of the Health and Safety Code,'to each}
1
the ratio of property tax revenue .received by all
2
jurisdiction in the following manner:
' 2
incorporated cities divided by the .total property tax
3
(a) Except as provided in subdivision (b), for each tax
3
revenue for• all local jurisdictions in the county for that
4
rate area; each jurisdiction shall be allocated an amount
4
fiscal year.
5
of property tax revenue equal to the amount of property
5 •
, (3) The county shall use the additional revenue
6
tax revenue allocated pursuant to this chapter to each
6
received pursuant to this subdivision only to fund the
7
jurisdiction in the prior fiscal year, modified by any
:) 7
actual costs of assessing, collecting, and allocating
8
adjustments required by Section 99 or 99.4.
8
property taxes.'At least once each fiscal year, the cutYnty
9
(b) For each tax rate area, each special district shall be
9
auditor shall report the amount of these actual costs :incl
10
allocated an amount of property tax revenue equal to the
10
allowable overhead costs to the legislative bock and any
11
amount of property tax revenue which would have been
11
other jurisdiction or person that request the information.
12
allocated pursuant to this chapter to the district in the
12
To the extent that actual costs for assessing, collecting,
13
prior fiscal year if no adjustment had been made pursuant
13
and allocating property taxes plus allowable overhead
14
to Section 98.6. This amount shall then be adjusted for the
14
costs are less than the amount determined pnrsu:unl to
15
current year pursuant to Section 98.6.
15
paragraph (2), the county auditor shall apportion the.
16
(c) The difference between the total amount of
16
difference to each ihcorporated city as otherwise
17
property tax revenuer and the amounts allocated pursuant.
17
required by this section. -
18
to subdivision (a) shall be allocated pursuant to Section
18
(4) The' county may retain up to one-half of any
19
98, and shall be known as the "annual tax increment."
19
increased property tax allocation to which a jurisdiction
20
(d) For purposes of this section, the amount of
20
may be otherwise entitled, until the county rr:cciyes its
21
property tax revenug referred to in subdivision (a) shall.
s) 21
additional revenues pursuant to this subdivision.
22
not include amounts generated by the increased
22-
(5) It is the intent of the Legislature in enacting this
23
assessments under Chapter 3.5 (commencing with
23
subdivision to recognize that since the adoption of Article
24
Section 75)..
24
XIII A of the California Constitution by the voters,
25
(e) (1) Notwithstanding any other provision of lain,
25
county governments have borne an unfair and
26
for the 1990-91 fiscal year, for the purposes of the
26
disproportionate part of the financial burden of assessing,
27
computations required by this section, the amount of
27
collecting, and allocating property tax revenues for cilias.
28
property tax presumed to have been received by the
28
It is further the intent of the Legislature that the
29
county in the prior year shall be increased by the amount
29
adjustments provided for by this. subdivision shall
30
of 1989-90 property tax administrative costs
30
constitute charges by a county for the assessment,
31
proportionately attributable to incorporated cities as
31
collection, and allocation of property taxes and shall not
32
determined pursuant to paragraph (2). '
32
exceed the actual costs reasonably borne by a county for
33
(2) The auditor shall determine the 1989-90 fiscal year
33
3¢•
those activities:
(f) If so directed by the board of the
34
35
property tax administrative costs proportionately
attributable to incorporated cities by adding the 1989-90
$
,super6isors,
auditor shall, determine the 1989-90 fiscal veer property
36
fiscal year property tax -related costs of the assessor, tak
,
tax administrative costs proportionately attributable to
.37,
collector, and auditor, including applicable
37,
'county,
local jurisdictions other than the county or city and
38
administrative overhead costs as permitted by federal
38
39
and cities, by adding the property lax -related.
costs of tiletr
assessor, lax collector, and auditor, inclndin
39
40
Office of Management and Budget Circular A-87
standards,- and multiplying the sum of those amounts by
40
applicable administrative overhead costs as permitted by
SB
1234 —g—
—9- SII 123.4
1
federal Office of Management and Bud et Circular A-87 0
Budget
1
SEC. 5. Section 6051.01 is•added to the Revenue and
2
standards, and multiplying the sum of those amounts by
2
Taxation Code, to read:
3
the ratio of property tax revenue received • by
3
4
6051.01. (a) Seve.ntypercentofthe amount collected
4
jurisdictions other than the county, city and county, and
pursuant to Section 6051 shall be deposited in the Sales
5
6
cities, divided by the total property tax received by all
local jurisdictions in
5
6
and Use Tax Revenue Account of the Special State
Sequester Fund which is hereby created for thatpurpose.
7
the county for that fiscal year.
Notwithstanding any other provision of law, this amount
7
(b) It is the intent of. the Legislature not to allocate
8
9
may be calculated for each fiscal year commencing with
the 1989-90 Fiscal
8
9
anymoneyout oftheSales and Use Tax Revenue Account
of the Special State Sequester Fund until the joint
10
year, and the auditor shall,
commencing in fiscal year 1990-91, if so directed by the
10
11
Legislative Committee on Realignment has reportpd its
11
board of supervisors, submit an invoice to these
12
recommendations, and both''houses and the Governor
have
12
jurisdictions for services rendered in the prior fiscal year.
p y:
13
acted upon the
p joint committee's
recommendations.
13
14
(g) Notwithstanding subdivision (f), no invoice as
described in that subdivision shall be submitted to any
14
SEC. 6 Section 6201.01 is added to the Revenue and
15
16
school district, community college district, or county
office of education, nor shall
15
16
Taxation Code,fo read:
6201.01. (a) Severtlypercentofthe amount collected
17
any of those entities be
required ` to pay any invoice, for .property tax
17
pursuant to Section 6201 shall be deposited in the Sales
18
administrative costs for services . endered in the 1990-91
18
19
and Use..Tax Revenue Account of the Special State
Sequester Fund which 'is created in Section 6051.01.
19
20
fiscal year, or in any subsequent fiscal year. This
subdivision shall not be construed to prevent the auditor
20
(b) It is the intent of the Legislature not to allocate
21
of any county from imposing and collecting from school
21
any money out ofthe Sales and Use Tax Revenue Account
•
22
2,3
districts, community college districts, and county offices
of education, in accordance
22
23
of the Special State Sequester Fund until the joint
Legislative Committee on Realignment has reported its
24
with subdivision (f), invoices
for property tax administrative costs for services
24
25
recommendations, and both Houses and the Governor
have acted
25
rendered to those entities in the 19890 fiscal year
Y
26
upon the
P joint committee's
recommendations.
26
27
SEC. 4. Section 97.10 is added to the Revenue and
T Ixation Code, to read:
27
SFC. 7. Section 7202 of the Revenue and Taxation
28
29
97.10. Notwithstanding any other provision of this
chapter, the computations and allocations made by each
28
29
Code is repealed.
. 7902. The edea tail pertieof a. ealos and use tape
30
county pursuant to Section 97, shall be modified for theege
30ordinanee
'�� p� shell he �� fer
31
32
1994-95 fiscal year pursuant to subdivisions (a) and (b) as
follows:
32
re�lz s� shell iRe�}ede sefling tangiblea personal�at
previsiexs in sebstrtee es feNe+vs:
33
•:34
(a) The amount of property tax revenue deemed
allocated in the prior fiscal year to each jurisdiction shall
33
34
fa* A pr en �l g a tam for the privilege of
tangible at rets uponBent every
35
be zero.
35
thelra a
retailer • the e�t1' rate 4i4 pereeet of the
36
(b) The amount ofproperty taxrevenuesnotallocated
36
gramreeeipts of the retailer &em the sale of all tangible
37 -
to jurisdictions as a result of reductions calculated
37
lam. sold that feu retailin the
38
39
pursuant to subdivision ° (a) shall be deposited in the
Government Equity Revenue Allocation Fiend to be
38
39
'14 previsions heal to these eentained in Piwt 4-
40
established in each county.
40
) .
Jeermneneingwith See lion 604 ,Inseferastheyrelateto
S11 1234 —10—
I sales fines; exeept that the name of the eounty as the
2 taxing tTeney shall be su69tituted far that of the state and
3 lhat stn additional seller s tier init shall net be required if
4 oae has been or is issued to the 9EMer under Seetieti 6067;
5 'Eel t4 provision that all amendments subsequent to the
6 effer:tive date of,the eftfwtnfent of Part }. {eeninie
neing
7 with Seelion 6001} relating to sales tax and
not
8 iileensistent with this part; shall flutetaftheally, beeerne a
Ill part of the sales tax erdinanee of the eounty;
Prov ision at h �nty shall eantraet prier to
11 the ef€ date e
and use tax
12 ordin"nees with the &tate Board of
to
1.3 tTerforin all {introns ineident to the administration et,
14 operation of the sale9 and use tax erdinanee of the
1 slaty stteh eentraet shall eatttain a provision at the
16 eounty agrees to eomply, with the previsions of Artiele 44
nr
17-feertteneing with Seetion 05aGY of Ghapter a of
18 Division,3 of 3'ite 3 of the Government Cede
19 {e} A prevision that the erdirtanee ffiay be
20 ineperative not less than 60 days; but net earlier thaft the
21 first day of the eatendar quartet;tewitig fetthe .eeuntp'y
22 '"'k Of eenTtIlianee with AA
2;3 Seetion 29 ily of Ghapter 2 of flit fs.
24 F�overument Cede or €allowing an inerease by any eity
25) within the eounty of the rate of its sales or use tax above
26 the rate in efleet at the time the eounty
27 enaeted. erdinanee was
28 {1} tl prevision that the ameunt subjeet te,tax shall net
29 inelude the amount of any sates tax or use tax imposed by
311 the State of California upona retailer or eonsurner,
31 {g} A proViyio#t that there is emempted from the gales
32 tax 80 pereettt of the gross reeeipts frern the sale of
33 HhngiblP Pergonal property; ether than fuel or petroleum '
34 preduets; to operators of airera€t to he sued er eensunted
35 prit)eipally, outside the eounty in wh" the gale t9 made
36 and direetly findexelasively in the use of the airerait as
37 eolnnton earr4ers of persons er property under the
38 authority of the laws e€this state; the t3nited States; ori
311 fort ign 1 everiHi#P1#t
40 {b} A prevision that any P-rson subjeet to a sales and .
—11-- SB 1234
1 use tact under the eounty erd"mmee shall be entitled to
2' eredit , against the payment of • taxes due under that
3 . fm; inane the anieurtt of sales and use tax due to any eity
4 in the eounty; provided; that the eity, sales and use tax is
5 levied under an erdfnanee ineluding previsions in
6 . 1111h9tenee as Fellewsh
7 , {4-} t4 prevision fmpesing a tax for the privilege d
at retail open ever
9 ���Ytit tl personal Property
er less of the
10 gross reeeipts of the retailer from the sale of all tangible
11 personal property sell by that person at retail in the eity
12 and a use tax of } pereent or less of purehase pries upon
13 th., storage; use or ether eeltsurnptien of tongihle
14 persenal property pureltesed from a retailer for storage;
15 use or eensumptien in the arty
16 {$} Frevigions ideeNeal to these eentained in Bart 4
17 {eennneneing with Seetien 6001}; insofar a9 they relate to
18 sales and use taxes; exeept that the name of the efts as the
19 taxing egeney shall be substituted far that of the state
20 * A the name of the eity, shell het be substituted for the
21 ward '-'state'= in the
22 i.n this stOe=
SB
1234 —12—
—13— SB 1234,
1
reeeipts frem the sale of whieh has been subjeet to sales
1
tax; exeepE that the name of the eeunty as Elie taxing
2
3
ax
tunder a sales- and use tact ere�anee enaeted in
aeeerdenee with "part by any efts and eeenty; eeunty;
2
3
ageney` enaeting the erdfnanee shah be substfEuted fete
that of the state {but the nerne of the eounty shall not be
4
or eity in this state; shall be exempt frem the tax due
4
substituted for the ward "state" in the phrase "retailer
5
6
under this erdinanee
{6} A provision that the amount subjeet to tax shall net
5
6
engaged in business in this state" • in Seetien 6803 ner in
the definitien of that phrase in Seetien 68031.
7
inelude the amount of any sales tart or use tax fmpesed by
7
{b} A prevision that all amendments subsegaent to the
8
the State of Galifernia upon a retailer er eensurner
8
date of sueh erdinanee to the previsions of the ltevenife
9
10
{7} A prevision that there are exempted from the
eempmatien of the amount of the sales tax the grass
9
10
and Taxation Gede relating to the use tax and. net
ineensistent with this partshall automatieally beeeme a
11
reeeipts frem the sale of tangible personal property to
11
pant of the ordinanee:
12
eperaters of aireraft te- be used er eonsumed prineipally
12
{e} A provisien that the storage; use or ether
13
outside the eity in whieh the sale is made and direetly and
13
eensemptien of . tangible persenel property; the
14
exelusively in the use of the aireraft as eomfnen earners
• 14
greys
reeeipts from the sale of whieh has been subjeeE to sales
15
of persons or preperty under the authority of the laws of
'this
15
tax under a sales. and use tax erdinanee enaeted in
16
17
state; the United States;. or any fereign government;
1* A previsien that; fn addrtiem to the exemptions
16
17
aeeerdanee with this part by any efts and eeunty ; eounty;
er eity in this state; be from
18
provided in Seetien46a66 and 6366.1; the storage; use; er
18
shall exefnpt the taw -due
under this'erdinanee.
19
20
ether eensumption of tangible personal preperty
purel►ased by eperaters of airerall and used er eensurned
19
20
{d} A prevision that the amet#nt subjeet to tax shall net
inelude the amount of any sales tax er use tax imposed by
21
by the operaters direetly and exelusirely in the use of the
21
the State of Geli{erniaupon a retailer er eensumer '
22
airera€t as eemmen earriers of persons or property for
22
{e} t� proyision that; in addition to the
23
24
hire er eempensatiem under . a eertif~feate of publie
eenvenienee and neeessity issued to the laws
23
24
provided in Seetiens 6a% and 6366.1; the sterege; use; er
25
pursuant of
this state; the United States; er any foreign government
25
ether eensumplion of tan 'ble personal property; ether
than fuel or petroleum preduets; purchased by operaters
26
is exempt from the;use tax.
26
of airereft and ,used er eensurned by the eperaters
27
SEC. 8.. Section '7203 of the Revenue and Taxation
27
• directly and exehfsively in the use of the aireraft as
28
29
Code is repealed. ie
7863: The use to E pertien ofany sales and use tax
28
29
eentme earriers of persons or property for lire er
eempensatien under a eertifteate of pubhe eenvenienee
30
31
ordinanee adopted under this part shall impose a
30
and necessity issued pursustat to the laws of this state
32
eemplementary tax open the storage; use er ether
eensumptiem in the eeumty of tangible personal property
31
32
United States or any foreign gevernment is exempt
80 peeeent of the use tax:
33
purehesed from any retailer fer. storage; use er ether
33
SEC. 9. Section 11005 of the Revenue and Taxation
34
eensumplien in the •aunty That tax shall be atthe rate
34..
Code is repealed.
35
of VA prevent of the sales priee of the Oreperty whose
35
11005. {a} After payment of refunds therefrom and
36
storage; use er ether eensumptiem is subjeet to the tax and
36
after making the deduetions autherieed by Seetien 11883
37
shall ineluder
37.
and reserving the amount determined neeessary by the
38
{a} Previsiens identieal to the previsions eentained in
38.
Peeled Meney investment Board to meet the transfers
39
Part 4 (eemmeneing wilh Seetion 6081); ether than
'39
ordered or proposed to be ordered pursuant to Seetien
40
Seelion 6801 insofar as these previsions relate to the use
40
16310 of the Government Gede; eemmeneing with the
SB 1234 —14-
1
14-1 4989" �3'�,- the Ge shall deduet that
3 to +take alleeatet
�revif" few in crier" 7720" of the � --
4 iglttylewe and erre/fluarter PereonE of Vi Code.
5 nater veh"ele heense fees andffn
6 altproltriated by law fir etfltetditttre purettant to this
4 seetiett and dee a deposited tutee ereflit of the Meter Vehieie
9 renat"spertatien Tam F* and
the lastdayof l � ass en
nt
Sha
12 the me nt�w by the ie� end
h day of the feNe�y h in
13 {b} Eighteen three � t ef the
14 baiatee shag- as fellervs)
15 +1+{* with the -1988<89 £+seal year; the
�ntrallei shall alleeate to eaeh eity that existed but did
17 not levy 18 than for ,ft property
� indebted.., In �l ye, ether
20 19 to the teW a�r�t' whieh eeehan a"teunt eq ud
have
�ee'ved in that $seal these eities wet }d
Year pttrsuatt to Beerier
21 the t�7Gt Of
22 �� on of of the
Otis 23 these seetions were eve 9t that fiseal ear fie' t e
24 fern in whteh the existed en;ute h4984- eaeh £•+seal
25 Year thereafter; the r• 06Hincrease the
26 fee eaeh eity een"pu#� went to this paragraph the
t ee+3t by whieh the revenue to the Motor Vehiele
28 bieense Fee Aeeeunt inereased ever the revenue for the
29 previous figeal year.
30 +B+ {i}* For eaeh i"seal
31 uh
32 �tsesl Year in whielt a eity suhjee�t tax��
33 �revenue
Sereeeive� property distribution of
97-38.the amount to be -ppursuant
34 to the eitY pursuauit to subpftragraph +A+ shall be retueed
35 a"weuttt of the distribution "wade pursue to these
�eetions,
37 {ii} No alleeaEion shall be trade to a eity pursuant to
38 wlbf)�h fA+ in the €trst fiseal year, in whieh the
39
40 97 A distribttt fl to a eity Pursuant to Seetien 97-.a5;
97-38 efluals or exceeds the amount that would
—Y5-• Sli i2;i4
1 have been a)loeetefl to that eity pursuant to sub#Taragrahh
2 •(A* er in any fiscal Year thereafter:
3 iii' • AY anle nt net alloeated to a eity t)Ilt'i/Hint {n
4 s"bPa"9"Ph -(A* as a result of tln> et)elfltif)n (4 tHi9
5 subparagraph shall rfhbe, alleeated to eligible eities in
6 aeeenlee with elatt9e {tv}
7 Oq (4orn"enetng with the 400)/%. f1.."I yetlr; the
8%ef)tErHllershfdlftlleeatethe
amenitFdfferritiMf,rjiiTfLnet.
9 {iii} ler-eaar
eh fimefd year te,e
eh ehgible ails in uhf -
10 prepnrtieu that the PebulftFien of eaeh e#igihlfe city hfYtt )
11 to tetal pepuhttien of all etigihle .eities:
12 For pttrpeyes of this elause -eligible eiW-, l" jig at"v
13 eitY which i"teorlterated prior to June 5,; -1987; and 11-1x1 tut
14 amount of property tax revenue alleeated to it #"urstatnt
15 to subdivision {ft} of Seeder 97 in the 4997,288 fisea# Yettr
:16 whieh
17 t is less than 401pereent of the aulewlt of property
revenutt
e eeputed far the 498748 fi9eftl year in
18fteeOPdftfteewith the "tethed deseribed ill st+Hflivisiett {e}
19 . of Seetien 07:35
21 de3 ter minaHe auditorauditorter shall nfltily the Gontrefler of #rig or her
22 21 " of these eities i
eligible eities vittinthe eetulty ml+ielT etre
23 1% Eaeh "tenth the Gontrolier shell alloeate the
24 remainder of the a"weunt dete""ined pnrsttat)F to tti9
25 subdivision to eeutt4e9 and eities and eeunties in at
26 amount fir etteh eetttty and city and eettnty equal to the
27 revenue received in the 498RAQ fi9eal yens pitrfmnt)t tt)
28 farmer Seetiet4414;; subdivision {e} of farmer t>eeEittn
30 Gec4e and ; -16143 t of the 4;evffrun"It
#nesea"weuttts shall be determined by the
31 Gentreller wit' the eeneurrenee of the Direetor of
32 l±inatee
33 ftuteu"Tt deter Gentreller sha#I alleeate a" remaining
mined pursuant to this snhdivi9ierT to
34 eeutties and eities and eoutties in the prepf)rtif)n that thg
35 ltopulaEie" of eaeh eountY or eity and eottnty hears tea Ih-
36 to W emulation efftH the eeunties and eities and "MIG"
37 38 . of the state; as determined pttrsttant to s"bdivi9ien {fI4
JO Fifty pereent ' of the paYtter"ts rPf#ttirpf# rHY
39 st" visien {8* shat# be-flfTid to the eities fa)fl c-0ie9 and
40 eeunties of this sFate it the p Fiott that Fite popttlatiett
f
SB
1234 —16 —
I
—17 — SB 12,34
2
of eaeh t eeunty bears to the total
cityies
a 1
eetunties pttrsuettt to this seetien May be used for eeunty
3
aor
a and
Perulatioe3l3es and eaunties ist this stale;
as determined by the population researeh trail of the
2
n
er eity purposes and may, but need net Reeeyea-. he
used for purposes of general interest snd benefit to rt}yethe
4
Department of Finanee. For the purpose of this
4
state.
5
subdivisien; the papulation of eaeh eity� eeunty
5
� based on a federal speeial
6
is that the lest federal speeia}
or
eea*sus�
subsequent eensu validated by the
7
8
eensus; or a subsequent eenses validated by the
7
Department of }mane shall be aeeepled by the
9
population researeh unit or subsequent eatimate
prepared pursuant to Seetien 8187:9 of the Streets and
8
9
6'entreiler only if eerti€ied to him at the request of the
eityr, eity and eeunty; er eeunty few whieh the eensus was
10
11
Highways Cede - In the ease of a eity ineerperated
subsequent to the last federal eensus; or a subsequent
10
1i
made and shall beeeme eff- ti; a on the first day of the
month feHewing reeeipt of the eertifieatien;
12
eemus validated by the papulation researeh unit; the
12
SEC. 10. Section 11005 is added to the Revenue and
13
populationreseareh unit shall determine the population
13
Taxation Code, to read:
14
of the eily; In the ease of unineerporated territery being
14
11005. (a) Commencing with the 1994-95 fiscal year,
15
annexed to a eity subsequent to the last federal eensus or
15
the Controller shall deposit the balance of all motor
16
a subsequent eensus validated by the pepuletien research
16
vehicle license fees, net of the amounts in subdivisions
17
eq papulation reseereh unit shall determine the
17
. (b) and (c), in the Vehicle License Fee Account of the
18
population of the annexed territory by the use of any
18
Special State Sequester Fund which is hereby created for
19
federal deeennial or speeia} eensus: or estimate prepared
19
that purpose.
20
pursuant to Seetien 9197:9 of the Streets and Higlmgaya
20
(b) The amount deposited in the Vehicle License Fee
21
Epode: In the ease of the eenselidatien of one e" with
21
Account of the Special State Sequester Fund shall be net
22
another subsequent to the last fel eensus; or a
22
of motor vehicle license fee refunds and deductions
23
subsequent eensus validated by the papulation researeh
23
authorized by Section 11003.
24
ut»E of the eenselidated eity; for the
24
(c) The amount deposited in the Vehicle License Fee
25
of
purpose , is the aggregate papulation of
25
Account of the Special State Sequester Fund shall be net
26
the reapeetive as determined by the last federal
26
of. motor vehicle license fee revenue reserves
27
eensus: or a subsequent eensm or estimate validated by
27
determined necessary by the Pooled Money Investment
28
the population researeh unit.
28
Board to. meet the transfers ordered or proposed to be
29
44 Fifty . pereent of the payments required by
29
ordered pursuant to Section 16310 of the Government
30.
subdivision {a} be paid to the eeunties and eines and
30
Code.
31
eeunties of the stele in the proportion that the papulation
31--
(d) The amount deposited in the Vehicle License Fee
32
of eaeh eouxty qr eity and eounty bears to the total
32
Account ofthe Special State Sequester Fund shall include
33
population of all the eounties and eities and eeunties of
33
any other money appropriated by law for expenditure
34
the state; as determined by the population researeh unit-
34
pursuant to this section and deposited to the credit of the
35
her the purpose, of this men; the papulation of
35
Motor, Vehicle License Fee Account in the
36
eeeh eeunty or e4 and eeenty is that determined by the
36
Transportation Tax Fund.
37
last federal eensus; or subsequent eensus velidated by the
37
(e) Except as provided in this section, it is the intent
38
population researeh unit; or as determined by'Seetien
38
of the Legislature not to allocate any money from the
39
40.
iioo .
{e} lJeney disbursed by the Gentreller to eities and
39
40•
Vehicle License Fee Account of the Special State
Sequester Fund until the Joint Legislative Committee on
SB
1234 —18 _
_19— SB 1234
1
Realignment hasreported its recommendations and both
-Governor
1
under their control to adequately address their assigned
2
3
houses and the have acted upon the joint
2
responsibilities, and the authority to adjust resource
committee's recommendations.
3
levels in accordance with the preference oflocal voters.
4
SEC. 11. (a) The joint Legislative Committee on
4
(4) Any state assistance provided to local agencies
5
Realignment is hereby created, authorized and directed
5
should be provided in a manner that reinforces the state's
6
to research, review, and recommend alternative ways to
6
policy objectives, instead of providing general subsidies
7
organize the delivery of state and local public services
7
for local agencies.
8
allocate public rdvenues, and provide fiscal incentives to
8
(S) In order to promote the achievement of program
9
maximize the achievement of statewide public goals.
9
outcomes, government at all levels must be accountable
10
(b) The committee shall consider prior to
10
to thepublic. This accountability can only be achieved by
11
proposals
attain these ends, including, but not limited to, the
11
requiring that the entity of government that makes
12
proposal entitled 'Making Government Make Sense,"
12
decisions about the level of service be the same entity
13
published in February 1933, by the Office of the
13
-that funds those levels of service and raises the funds to
14
Legislative Analyst.
14
pay for them.
15
(c) The committee shall review all services provided
15
(6) The use of mandates to achieve state objectives
16
by the state and local agencies, especially those in which
16.
should be limited to.the greatest extent possible.
17
program and 11nnding responsibilities are currently
17
(7) The state should try to anticipate the unintended
18
shared, to deteribine which level of government should
18
consequences of changing fiscal and programmatic
19
most appropriately. exercise predominant program
19
relationships, including, but not limited to, the effects on:
20
control
20
(A) Governmental fiscal capacity.
21
(d) Upon reviewing these services, the committee
21
(D) Federal finaincial participation.
22
shall recommend a rational realignment of program and
22
(C) Land use decisions made.by local governments.
23
fiscal responsibilities to achieve improved program
23
(D) Economic development efforts.
24
performance, public accountability, and political
24
(1) The committee shall consist of the following 12
25
responsiveness. The recommendations shall provide for a
25,
members:
26
phase-in period, and shall include specific
26
(1) Three Members of the Senate appointed by the
27
recommendations for statutory and constitutional
27
President pro Tempore of the Senate.
28
changes.
28
(2) Three Members of the Senate appointed by the
29
(e) The committee shall be. guided by the following
29
Minority Leader of the Senate.
30
principles: ,30
(3) Three Members of the Assembly appointed by the
31
(1) The state government and local agencies should
31
Speaker of the Assembly.
32
have different responsibilities, powers, and ksources so-
32
(4) Three Members of the Assembly appointed by the
33
that they may overate as independently of each other as
33
Minority Leader of the Assembly.
34
A practically possible.
34.
(g) The Senate Rules Committee shall appoint one of
35
(2) The fiscal relationship between the state and local
35
the six Members of the Senate to chair the committee.
36
agencies should be harmonized through the use of fiscal
36
The Speaker of the Assembly shall appoint one of the six
37
incentives to . promote and coordinate economic
37Members
of the'Assembly to be the committee's vice
38
development and to encouragepreventative strategies in
.38.
chair.
39
the approach to statewide issues.
39
(h) The committee shall implement the following
40
(3) Local agencies should have sufficient resources
40
schedule:
SB 1234
—20-
1 (1) Beginning August 2, 1993, the committee shall 4
2 meet at least once a month to take testimony, review
3 alternatives, draft recommendations, and, prepare its
4 reports. „
5 (2) On or before December 10, 1993, the committee
6 shall issue a preliminary report that recommends
7 methods of allocating revenues in each county's
8 Government Equit Revenue Allocation fund and the
9 Special State Sequester Fund, funds that are to be created
IU pursuant to Sectioll s 97.10, 6051.01, and 11005 of the
11 Revenue and Taxation Code.
12 (3) On or before March 1, 1994, the committee shall
13 issue a final report that recommends a method of
14 allocating revenuds in each Government Equity
15 1 tevenue Alloca tion Fund and the Special State Sequester
16 Fund. The committee's, report may also_ include other.._
17" recommendations _to realign programs; restructure
18 state -local relations, reorganize government structures,
19 and other related issues.
20 (i) The committee has the following powers and
21' duties:
22 (1) All of the rights, duties, and powers conferred on
23 investigating committees and their members pursuant to
24 the Joint Rules of! the Senate and Assembly; which
25 provisions are incorporated herein and made applicable
26 to the committee and its members.
27 (2). To contract, subject to the Joint Rules, with other
28 public agencies, private firms, colleges and universities,
29 and individuals for services, studies, and reports
30 necessary to carry out the committee's duties.
31 (3) To do any other things necessary or convenient to .
32 allow the committee to fully exercise its powers and
33 . perform its duties.
34 (j) The Joint Rlrles Committee may make funds
35 availablefrom the Con tingentFundsofthe Assembly arid.
;36 Senate for thepurposes ofthissection, and tile committee
37 may spend those funds for, the expenses of the committee
38 and its members and for any charges, expenses, or claims.
39 it incurs pursuant to this section. However, any
40 expenditure of fundis shall comply with policies of the
—21— SB 1234 ;
1 Joint Rules Committee and shall be subject to the
2. approval of the Joint Rules Committee.
3 (k) This section shall remain in effect only until March
4 11, 1994, and on that date theJoint Legislative Committee
5 on Realignment shall terminate and this section shall
6 have no force or effect on or alter that date.
7 SEC.12. Sections 3, 4, 5, 6, 7, 8, 9, and 10 of this act shall
8 become operative on July 1, 1994, unless a later enacted
9 statute, which is chaptered before July 1, 1994, deletes or
10 extends that date.
A