BILL NUMBER: AB 680	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 17, 2002
	AMENDED IN SENATE  MAY 14, 2002
	AMENDED IN ASSEMBLY  JANUARY 29, 2002
	AMENDED IN ASSEMBLY  JANUARY 14, 2002
	AMENDED IN ASSEMBLY  MAY 24, 2001
	AMENDED IN ASSEMBLY  MAY 14, 2001
	AMENDED IN ASSEMBLY  APRIL 30, 2001

INTRODUCED BY   Assembly  Members Steinberg and Thomson
  Member Steinberg 
   (Coauthor:  Assembly Member Kehoe)

                        FEBRUARY 22, 2001

   An act to add Article 10 (commencing with Section 65500) to
Chapter 3 of Division 1 of Title 7 of the Government Code, and to add
Chapter 1.5 (commencing with Section 7215) to Part 1.5 of Division 2
of the Revenue and Taxation Code, relating to land use.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 680, as amended, Steinberg.  Land use:  sales  and use
 tax and property tax revenue allocation.
   The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes a
county to impose a local sales and use tax at a rate of 1.25%, and
similarly authorizes a city, located within a county imposing such a
tax rate, to impose a local sales  and use  tax rate of 1%
that is credited against the county rate. Existing law requires a
city, county, or city and county imposing a local sales and use tax
pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law to
contract with the State Board of Equalization to administer the local
sales and use tax.  Existing law also requires the board, at least
twice during each calendar quarter, to transmit local sales and use
tax revenue to the city, county, or city and county in which the
revenue was collected.
   This bill would, pursuant to specified definitions and procedures,
require the board to distribute sales  and use  tax
revenue, derived from the application of a 1% tax rate by a qualified
or electing county or city in the greater Sacramento region, among
those same counties and cities on the basis of (1) the amount of
sales  and use  tax revenue that those counties and cities
received in the  2002   2003  calendar
year,  as annually adjusted for inflation, as provided,  and
(2) the relative populations of those counties and cities, as
determined by the board and the population research unit of the
Department of Finance.  The bill would provide that up to 1/3 of the
sales  and use  tax revenue growth be shifted away from
those counties and cities in the region that fail to become housing
eligible, as defined, and require those revenues to instead be
allocated to the Sacramento Area Council of Governments (SACOG) for
the funding of regional projects, as defined  , unless certain
revenue targets are not met, in which case this bill would provide
that all of these revenues be allocated in the manner prescribed by
existing law  .   The bill would also establish the
Sacramento Regional Smart Growth Fund Allocation Program to provide
funding incentives for responsible regional growth policies, as
specified.  By imposing allocation duties upon SACOG, this
bill would create a state-mandated local program.
   This bill would also state the intent of the Legislature to create
the  Greater  Sacramento Regional Open Space and Recreation
Conservancy to acquire open-space land.
   This bill would make legislative findings and declarations as to
the necessity of a special statute, and as to the public purposes
served by this bill.
   This bill also would require the Legislative Analyst's office, in
conjunction with the State Board of Equalization, to report to the
Legislature regarding the impact of the bill, as specified, in the
greater Sacramento region.
   This bill would also provide that its operation be postponed, as
specified, if a statute is enacted in any year from 2002 to 2010 that
decreases the amount of certain revenues that would have been
received by cities and counties in the greater Sacramento region
under the law in effect on January 1, 2002.  This bill would also
provide that its provisions become inoperative on the operative date
of a revenue-sharing agreement, as specified, between all of the
cities and counties in the greater Sacramento region.
  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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   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.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 10 (commencing with Section 65500) is added to
Chapter 3 of Division 1 of Title 7 of the Government Code, to read:

      Article 10.  Sacramento Regional Smart Growth Act of 2002

   65500.  For purposes of this article, the following definitions
apply:
   (a) "Greater Sacramento region" means the region encompassing the
total combined area of the County of El Dorado, the County of Placer,
the County of Sacramento, the County of Sutter, the County of Yolo,
and the County of Yuba, but does not include the region, as defined
in subsection (a) of Article II of Public Law 96-551, governed by the
Tahoe Regional Planning Agency, as described in Article III of
Public Law 96-551.
   (b) "Regional project" includes, but is not limited to, the
following:
   (1) Regional transportation projects.
   (2) Transit-oriented development.
   (3) Infill development.
   (4) Development to provide a balance between jobs and housing.
   (5) Mixed use development.
   (6) Quality of life projects, including, but not limited to,
theater and the arts.
   (7) Open-space acquisition.
   (8)  Housing developments composed of housing for persons and
families at a variety of income levels.
   (9) Community redevelopment projects.
   (10)  Other regional land use projects as determined to be
necessary by the Sacramento Area Council of Governments.
   65501.  Those moneys apportioned to the Sacramento Area Council of
Governments pursuant to subparagraph (C) of paragraph (2) of
subdivision (b) of Section 7215.1 of the Revenue and Taxation Code
shall be allocated among qualified cities and qualified counties, as
defined in Section 7215.1 of the Revenue and Taxation Code, to fund
 and administer  regional projects, as defined in Section
65500  , that are specified on a list adopted by the Sacramento
Area Council of Governments  .
   65502.   (a)  It is the intent of the Legislature
to enact a program to establish the Greater Sacramento Regional Open
Space and Recreation Conservancy for the purpose of acquiring
open-space land, as defined in Section 65560.  
   (b) It is the further intent of the Legislature that the Greater
Sacramento Regional Open Space and Recreation Conservancy be funded
with revenue from the following sources:
   (1) Upon an appropriation by the Legislature, revenue derived from
bonds issued pursuant to Chapter 875 of the Statutes of 2001.
   (2) Regional impact fees, as described in subdivision (c).
   (c) It is the further intent of the Legislature to enact a program
by which regional impact fees are imposed upon developers of
residential and commercial development in the greater Sacramento
region, except residential infill developments and residential
housing developments for persons of low and moderate income.  The
amount of these fees may not exceed the benefits derived by the
developers upon which the fees are imposed, and shall be based upon
the following considerations:
   (1) The proximity of the development to urban population centers.

   (2) The proximity of the development to various types of farmland,
including, but not limited to, prime farmland, farmland of statewide
significance, unique farmland, farmland of local importance, or
other categories of farmland as defined by the Farmland Conservancy
Program as administered by the Department of Conservation.
   (3) Existing development fees that are imposed by local
governments in the greater Sacramento region that have the same
fundamental purpose as the fees contemplated by this section.  In the
case of a local fee so imposed, those fees shall offset the fees
contemplated by this section by up to two-thirds, but in no event
shall a developer pay less than one-third of the regional impact fee
contemplated by this section.
   (4) The complexity of existing development fee structures in the
greater Sacramento region. 
  SEC. 2.  Chapter 1.5 (commencing with Section 7215) is added to
Part 1.5 of Division 2 of the Revenue and Taxation Code, to read:

      CHAPTER 1.5.  GREATER SACRAMENTO REGION PER CAPITA REVENUE
ALLOCATIONS

   7215.  The Legislature hereby finds and declares all of the
following:
   (a) The situs-based allocation of local sales tax revenue has
caused serious fiscal problems and public service inefficiencies, as
well as a fiscalization of governmental land use decisions that
focuses upon maximizing sales and use tax revenue from retail
establishments, rather than upon land use needs in the community.
   (b) Among other things, the situs-based allocation of local sales
tax revenue has led to unhealthy competition among local
jurisdictions for retail development, and to local government revenue
streams that do not correspond to the level of public services
supported by those revenue streams.
   (c) The adverse results of the situs-based allocation of local
sales tax revenue has impacted each county and city imposing a sales
tax, and has not been remedied by either existing law or by local
actions or agreements. Instead, existing law and the dynamics of
local government finance have maintained or even exacerbated the
adverse fiscal, governmental, and public service consequences of a
situs-based allocation of local sales tax revenue.
   (d) The greater Sacramento region provides a unique and
instructive perspective on the issue of local sales tax revenue
allocation, inasmuch as the greater Sacramento region continues to be
subject to both extremely rapid development and new incorporations
of jurisdictions with authority, under current law, to impose a local
sales tax.  These dynamics establish the greater Sacramento region
as a region that is uniquely suited for the trial and implementation
of a proposed regional local sales tax revenue allocation program
aimed at eliminating the adverse fiscal, political, and public
service consequences of the situs-based allocation of local sales tax
revenue.
   (e) It is the intent of the Legislature, in enacting this act, to
implement a pilot program of local sales tax allocation in the unique
circumstances currently presented by the greater Sacramento region,
that will allow state and local governments to jointly establish,
test, and refine an alternative system of local sales tax revenue
allocation.  It is the further intent of the Legislature that this
pilot program not be implemented statewide until after the report
described in Section 3 of the act adding this section is submitted to
the Legislature.  
   7215.  (a) It is the intent of the Legislature in enacting this
act to implement a program of local sales and use tax allocation in
the greater Sacramento region because of the unique circumstances
currently presented in that region.
   (b) The Legislature may not enact a statewide sales and use tax
revenue allocation program that allocates local sales and use tax
revenue on a regional per capita basis.
   (c) This act may not be used to facilitate the enactment of a
local sales and use tax revenue sharing program in any part of the
state that is outside the greater Sacramento region. 
   7215.1.  Notwithstanding any other provision of this part, all of
the following apply:
   (a) The board shall segregate into a separate account that amount
of sales  and use  tax revenue, net of refunds, that is
collected pursuant to  returns filed in accordance with 
this part in the greater Sacramento region as a result of the
application of a 1 percent sales  or use  tax rate imposed
pursuant to this part by either a qualified county or a qualified
city, or by a county or city making an election under subdivision
(e).
   (b)  For   Except as provided in paragraph
(3), for  the first calendar  quarter of 2004 and each calendar
quarter thereafter, the board shall apportion the revenue segregated
pursuant to subdivision (a) as follows:
   (1) Each qualified county or qualified city shall be apportioned
its base quarter revenue amount.
   (2) The remaining revenues segregated pursuant to subdivision (a)
shall be allocated as follows:
   (A) One-third of the revenues shall be apportioned, in two or
 more installments, among qualified counties and qualified
cities   more installments, among the qualified counties
and qualified cities in which the taxable sales or uses occurred,
 in the manner required by Section 7204.
   (B) One-third of the revenues shall be apportioned, in two or more
installments, among qualified counties and qualified cities in
shares determined by multiplying that portion of the revenues by the
most recent jurisdictional share determined for each qualified county
and qualified city pursuant to Section 7215.2.
   (C) One-third of the revenues shall also be apportioned in shares
determined in the same manner as required by subparagraph (A), except
that any share that is so calculated with respect to a qualified
county or qualified city that is not housing eligible for that
calendar year shall instead be apportioned to the Sacramento Area
Council of Governments for apportionment as provided in Section 65501
of the Government Code.  
   (3) (A) If in any calendar quarter commencing on or after January
1, 2005, the board determines that the amount of sales and use tax
revenue segregated pursuant to subdivision (a) is less than the
amount segregated pursuant to that subdivision in the corresponding
calendar quarter in the immediately preceding calendar year, adjusted
for inflation as described in subparagraph (B), then sales and use
tax revenue in that calendar quarter shall be transmitted in the
manner required by Section 7204.
   (B) In each calendar quarter commencing on or after January 1,
2005, for purposes of making the determination described in
subparagraph (A), the board shall do all of the following:
   (i) Determine the amount of sales and use tax revenue segregated
pursuant to subdivision (a) in the corresponding calendar quarter in
the immediately preceding calendar year.
   (ii) Determine the sum of the following amounts:
   (I) The amount determined pursuant to clause (i).
   (II) The product of the following:
   (ia) The amount determined pursuant to clause (i).
   (ib) An inflation factor that is the percentage change, rounded to
the nearest one-thousandth of 1 percent, from December of the
immediately preceding year to December of the current year in the
California Consumer Price Index for all items, as determined by the
California Department of Industrial Relations. 
   (c) For purposes of this chapter, all of the following apply:

   (1) "Base quarter revenue amount" means an amount of sales
 
   (1) (A) "Base quarter revenue amount" means an amount of sales and
use  tax revenue that is equal to the amount of sales  and
use  tax revenue that a qualified county or qualified city in
the greater  Sacramento region received in the corresponding
calendar quarter in the year 2003, except that for newly incorporated
cities the "base quarter revenue amount" is the corresponding
calendar quarter in the year prior to incorporation.  
Sacramento region received pursuant to returns filed in the
corresponding calendar quarter in the year 2003, adjusted for
inflation pursuant to subparagraph (B), except that for newly
incorporated cities the "base quarter revenue amount" is the amount
of sales and use tax revenue collected in the incorporated area in
the corresponding calendar quarter in the year immediately preceding
incorporation, adjusted for inflation as provided in subparagraph
(B).  If in any calendar quarter in the year 2003, the sales and use
tax revenue received by a qualified county or a qualified city,
pursuant to returns filed in that quarter, is less than the amount of
sales and use tax revenue received by that county or city in the
corresponding calendar quarter in the year 2002, pursuant to returns
filed in that quarter, the "base quarter revenue amount" of that
county or city for that quarter is the arithmetic mean of the amounts
of sales and use tax revenue collected in the corresponding calendar
quarter during the year 2000, the year 2001, the year 2002, and the
year 2003, as adjusted for inflation pursuant to subparagraph (B).
   (B) On and after January 1, 2005, the "base quarter revenue amount"
for a qualified county or qualified city is the sum of the following
amounts:
   (i) The "base quarter revenue amount" determined for that county
or city under subparagraph (A).
   (ii) The product of the following:
   (I) The "base quarter revenue amount" described in subparagraph
(A).
   (II) An inflation factor that is the percentage change, rounded to
the nearest one-thousandth of 1 percent, from December of the
immediately preceding year to December of the current year in the
California Consumer Price Index for all items, as determined by the
California Department of Industrial Relations. 
   (2) "Greater Sacramento region" means the region encompassing the
total combined area of the County of El Dorado, the County of Placer,
the County of Sacramento, the County of Sutter, the County of Yolo,
and the County of Yuba, but does not include the region, as defined
in subsection (a) of Article II of Public Law 96-551, governed by the
Tahoe Regional Planning Agency, as described in Article III of
Public Law 96-551.
   (3) "Qualified city" means a city in the greater Sacramento region
that imposes a sales  and use  tax pursuant to this part
 ,   and  that has a population growth rate
of more than one-half of 1 percent  , and that has not met
the requirements of Section 7215.3  .
   (4) "Qualified county" means a county in the greater Sacramento
region that imposes a sales  and use  tax pursuant to this
part,  that   and  has a population growth
rate of more than one-half of 1  percent, and that has not
met the requirements of Section 7215.3.    percent.

   (5) A "qualified city" or "qualified county" is "housing eligible"
for a calendar year if the city or county  meets all of the
following criteria:
   (A) The governing body of the city or county has done either of
the following:
   (i) Caused to be issued residential building permits for new
construction in the jurisdiction that, by regulatory agreement
recorded against the property, is affordable to, and occupied by, low
or very low income households (as defined annually for the region by
the United States Department of Housing and Urban Development), at
least one-half of which shall be affordable to very low income
households, or the jurisdiction has caused to be issued permits for
substantial rehabilitation (over seven thousand five hundred dollars
($7,500) per unit construction contract value) of existing
residential units that are, by regulatory agreement affordable to,
and occupied by, low-income and very low income households, that in
the aggregate are equal to 5 percent or more of their building
permits for residential units built within the last year, or
averaging 5 percent over a three-year period.
   (ii) Adopted a mixed-income housing ordinance that assures
construction of units affordable to a minimum of 5 percent very low
and 5 percent low-income households, for a total minimum of 10
percent, in any new residential development of more than 10 units.
   (iii) A qualified city or a qualified county with a population of
15,000 people or less, is exempt from the requirements of this
subparagraph.
   (B) The city or county provides domestic violence shelters and
shelter or year-round services for the homeless population in the
city or county, as determined on the basis of the minimum of 15
percent of the nationally recognized Urban Institute homeless
population estimation formula (1 percent of the population within a
given jurisdiction).  A qualified city or qualified county with a
population of 15,000 people or less is exempt from the requirements
of this subparagraph.
   (C) The city or county filed an inventory of potential infill
development or open-space acquisition sites in its jurisdiction, and
an action plan for proceeding on those opportunities, in the form and
manner approved by the Sacramento Area Council of Government Board
of Directors.  In each year thereafter, the Board of Directors of the
Sacramento Area Council of Government shall certify both the receipt
of the action plan, and that the city or county has made substantial
progress toward meeting the action plan.   is in
compliance with the housing element contained in its general plan.

   (d) A city or county in the greater Sacramento region, that
imposes a sales  and use  tax pursuant to this part but is
not a qualified city or a qualified county, shall be allocated sales
 and use  tax revenue as otherwise required by this part in
the absence of this section.
   (e) Notwithstanding any other provision of this section, a city or
a county in the greater Sacramento region that imposes a sales 
and use  tax pursuant to this part and that has  a
  an annual  population growth rate of less than
one-half of 1 percent may elect, by a resolution enacted by a
majority of its governing body, to participate in the allocation of
sales  and use  tax  revenue according to this section.
   7215.2.  (a) No later than March 1 of 2004 and each year
thereafter, and within 30 days of determining new population
estimates pursuant to subparagraph (B) of paragraph (2) of
subdivision (c), the board shall calculate the jurisdictional shares,
determined pursuant to subdivision (b), for those counties and
cities imposing a sales  and use  tax pursuant to this part
in the greater Sacramento region.
   (b) The board shall, for each county or city imposing a sales 
and use  tax pursuant to this part in the greater Sacramento
region, determine a jurisdictional share in accordance with the
following formula:
   (1) Determine the total population of the greater Sacramento
region.
   (2) Determine the total population of the relevant county or city.
  In the case of a county, total population means the total
population of only the unincorporated area of that county.
   (3) Divide the amount determined pursuant to paragraph (2) by the
amount determined pursuant to paragraph (1)  , rounded to the
nearest one-thousandth of 1 percent  .
   (c) (1) Except as otherwise provided in paragraph (2), the
population determinations described in subdivision (b) shall be made
upon the basis of annual population estimates that are made by the
population research unit in the Department of Finance for purposes of
this section, and are transmitted to the board not later than
February 1 in each year.
   (2) (A) For the 2003 calendar year, the population determinations
described in subdivision (b) shall be made on the basis of the later
of the following:
   (i) The most recent population estimates for counties and cities
in the greater Sacramento region, as otherwise required or authorized
by law, that have been made by the population research unit in the
Department of Finance.
   (ii) The most recent census validated by the population research
unit in the Department of Finance.
   (B) The population research unit in the Department of Finance
shall newly estimate the population of the affected city, and any
other affected city or county in the greater Sacramento region, and
provide those new estimates to the board within 30 days after any of
the following occur:
   (i) A newly incorporated city in the greater Sacramento region
imposes a sales and use  tax pursuant to this part.
   (ii) A city in the greater Sacramento region that imposes a sales
 and use  tax pursuant to this part completes the annexation
of additional territory.
   (iii) A consolidation of one city in the greater Sacramento region
with another city in that region results in a consolidated city that
imposes a sales  and use  tax pursuant to this part.
   7215.3.  A county in the greater Sacramento region, as defined in
Section 7215.1, is not a qualified county for purposes of that
section if all of the following conditions are met:  
   (a) That county meets the requirements set forth in subparagraph
(B) of paragraph (5) of subdivision (c) of Section 7215.1.
   (b)  
   (a)  That county enacts ordinances and substantially complies
with these ordinances requiring all of the following:
   (1) That a fair share of the greater Sacramento region's
residential housing needs for persons of low and moderate income will
be located in that county.
   (2) That all new residential and commercial development occur
within the existing boundaries of a city within that county.
   (3) That for every acre of new residential and commercial
development in the county, one acre be set aside in that county as
open-space land, as defined in Section 65560 of the Government Code.

   (c)  
   (b)  The county and two or more of the cities in that county
have entered into a revenue sharing agreement, pursuant to Article 1
(commencing with Section 55700) of Chapter 5 of Part 2 of Division 2
of Title 5 of the Government Code.  
   (d)  
   (c)  For purposes of this section, "new" residential and
commercial development is development that occurs on or after January
1, 2004.  
   (e) Notwithstanding any other provision of this section, a
qualified city, within a county that meets the criteria of
subdivisions (a) to (c), inclusive, may elect, by a resolution
enacted by a majority of its governing body, to participate in the
allocation of sales tax revenue pursuant to Section 7215.1. 

  SEC. 3.  On or before January 1, 2010, the Legislative Analyst's
office, in conjunction with the State Board of Equalization shall
report to the Legislature regarding the reallocation of local sales
 and use  tax revenue pursuant to this act.  To the extent
possible, the Legislative Analyst's office shall incorporate comments
from the Sacramento Area Council of Governments regarding the impact
of this act on affected local jurisdictions. The report shall
include, but not be limited to, the following:
   (a) Estimates of the fiscal impact of this act on local
governments in the greater Sacramento region.
   (b) To the extent that data are available, representative case
studies documenting whether land use decisions made by local
jurisdictions in the greater Sacramento region were affected by this
act.  
   (c) Recommendations regarding whether to continue the sales tax
allocation formulas specified in this act, and, if applicable,
suggestions for amending this act to better achieve the Legislature's
intent to promote smart growth land use policy.
   (d) An analysis of the number of permits issued for low- and very
low income affordable housing, shelter and services for the homeless,
infill development projects, open-space acquisition,  
   (c) An analysis of the number of permits issued for very low,
low-, moderate-, and above-moderate income affordable housing 
and regional projects  by local governments in the greater Sacramento
region.  
  SEC. 4.  (a) It is the intent of the Legislature to enact in this
section a program to encourage cities and counties in the greater
Sacramento region, as described in this act, to participate in
responsible regional growth by rewarding, in accordance with
subdivision (b), those jurisdictions within the region that meet the
criteria set forth in paragraph (5) of subdivision (c) of Section
7215.1 of the Revenue and Taxation Code or that are exempt from the
requirements of that paragraph.
   (b) The Sacramento Regional Smart Growth Fund Allocation Program
is hereby established, and shall be known and may be cited as the
CAPSMART Program.  During the 2004 State Transportation Improvement
Program funding cycle, and every two years thereafter, the Department
of Transportation may designate Interregional Transportation
Improvement Program funds as smart growth principles incentive
funding for eligible projects that support smart growth principles
and strategies and are identified as priority transportation spending
projects by the Sacramento Area Council of Governments.  The
Sacramento Area Council of Governments shall review requests from
individual jurisdictions in a process to be developed by the
Sacramento Area Council of Governments using criteria developed by
the Department of Transportation, and to be implemented in
coordination with existing Sacramento Area Council of Governments
RTIP procedures.  Allocations and decision guidelines developed by
the Sacramento Area Council of Governments, in consultation with
cities and counties, shall meet California Transportation Commission
Guidelines, and applicable national and state requirements.  The
Sacramento Area Council of Governments shall forward CAPSMART funding
recommendations to the Department of
              Transportation which shall make those changes,
additions, or deletions as it deems appropriate, and then may include
the projects in the state discretionary portion of the State
Transportation Improvement Program.
   (c) Any multicounty region in California that adopts regional
tax-sharing agreements or multicounty smart growth principles, as
defined in subdivision (d), shall be entitled to both of the
following:
   (1) Beginning in the 2008-09 fiscal year and upon appropriation by
the Legislature, 1 percent of the funds allocated to the
Transportation Investment Fund pursuant to Assembly Constitutional
Amendment 4 of the 2001-02 Regular Session.
   (2) Ten points awarded for applications to the State Department of
Housing and Community Development for the Jobs-Housing Balance
Program, the Cal Home Program, and the Multi-Family Housing
Assistance Program.
   (d) "Smart growth principles" include, but are not limited to,
programs designed to end the fiscalization of land use, including
programs that address regional equity in tax income; the provision of
social services; enhancing open-space and agricultural land
acquisition; transit oriented development; and infill development.
  SEC. 5.   
  SEC. 4.   The Legislature finds and declares that a special
law is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because the unique fiscal, jurisdictional, and public
service dynamics in the greater Sacramento region provide a unique
opportunity to implement and refine possible solutions to the fiscal,
planning, and public service problems resulting from the imposition
of multiple local sales  and use  taxes.  
  SEC. 6.  The Legislature finds and declares that requiring the
 
  SEC. 5.  The Legislature finds and declares that, due to the unique
circumstances in the greater Sacramento region, requiring the 
allocation of local sales  and use  tax revenue in the
greater Sacramento region on a per capita basis serves a specific
public purpose of each county or city imposing a sales  and use
 tax in that region by reducing the unhealthy competition that
currently exists between these entities for new retail
establishments, helping to equate revenue streams with public service
requirements, and allowing land use decisions to be made solely on
the basis of land use planning considerations.  
  SEC. 7.   
  SEC. 6.   Notwithstanding Section 17610 of the Government
Code, if  the Commission on State Mandates determines that this act
contains costs mandated by the state, reimbursement to local agencies
and school districts for those costs shall be made pursuant to Part
7 (commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.

  SEC. 8.   
  SEC. 7.   (a) This act shall not become operative if, during
any legislative session commencing with the 2001-02 Regular Session
to the 2009-10 Regular Session, inclusive, or any extraordinary
session that runs concurrently with those regular sessions, either of
the following  occur   occurs  :
   (1) A bill is chaptered that decreases the amount of ad valorem
property tax revenue that otherwise would have been allocated to a
city or county within the greater Sacramento region, as defined in
Section 7215.1 of the Revenue and Taxation Code, under the law in
effect on January 1, 2002, for the purpose of increasing the amount
of ad valorem property tax revenue that is allocated to an
Educational Revenue Augmentation Fund.
   (2) A bill is chaptered that decreases the amount of vehicle
license fee revenue that otherwise would have been received by a city
or a county within the greater Sacramento region, as defined in
Section 7215.1 of the Revenue and Taxation Code, under the statutes
in effect on January 1, 2002, or decreases the amount of General Fund
moneys that would have been received by a city or county within the
greater Sacramento region, as defined in Section 7215.1 of the
Revenue and Taxation Code, under Section 11000 of the Revenue and
Taxation Code as that section read on January 1, 2002.
   (b) If this act fails to become operative as a result of
subdivision (a), this act shall become operative on the date that one
or more bills are chaptered that remove the applicable condition or
conditions described in subdivision (a) by doing the applicable of
the following:
   (1) Increases the amount of ad valorem property tax revenue
otherwise allocated to a city or county within the greater Sacramento
region, as defined in Section 7215.1 of the Revenue and Taxation
Code, to the amount that would have been allocated to that city or
county under the statutes in effect on January 1, 2002.
   (2) Increases the amount of vehicle license fee revenue received
by a city or a county within the greater Sacramento region, as
defined in Section 7215.1 of the Revenue and Taxation Code, to that
amount of vehicle license fee revenues that would have been received
by that city or county under the statutes in effect on January 1,
2002; or increases the amount of General Fund moneys received by a
city or county under Section 11000 of the Revenue and Taxation Code
to that amount that would have been received by those cities or
counties under that section as it read on January 1, 2002.  
  SEC. 9.   
  SEC. 8.   This act shall become inoperative on the operative
date of a  tax revenue-sharing agreement, entered into according to
state law, between all of the cities and all of the counties in the
greater Sacramento region, as defined in Section 7215.1 of the
Revenue and Taxation Code.                                ____
CORRECTIONS Text -- Pages 10.                               ____