BILL NUMBER: SB 198	CHAPTERED  10/05/01

	CHAPTER  533
	FILED WITH SECRETARY OF STATE  OCTOBER 5, 2001
	APPROVED BY GOVERNOR  OCTOBER 4, 2001
	PASSED THE ASSEMBLY  SEPTEMBER 13, 2001
	PASSED THE SENATE  JUNE 4, 2001

INTRODUCED BY   Senator Chesbro

                        FEBRUARY 8, 2001

   An act to amend Section 214.02 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 198, Chesbro.  Property taxation:  welfare exemption:  nature
resources and open-space lands.
   Existing property tax law provides, as specified, for a welfare
exemption under which property used exclusively for religious,
hospital, scientific, or charitable purposes and owned and operated
by funds, foundations, or corporations meeting statutory requirements
is exempt from taxation.  Existing law also provides, with specified
exceptions, that property used exclusively for the preservation of
specified nature resources or open-space lands and meeting other
specified criteria shall be deemed to be included within the welfare
exemption.  It further provides that this inclusion is operative to
and including the lien date in 2002, and is of no further force or
effect thereafter.
   This bill would extend the foregoing limitation, on the inclusion
of property within the welfare exemption, to and including the lien
date in 2012.
   Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
   This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to this bill.
   This bill would take effect immediately as a tax levy.


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


  SECTION 1.  Section 214.02 of the Revenue and Taxation Code is
amended to read:
   214.02.  (a) Except as provided in subdivision (b) or (c),
property that is used exclusively for the preservation of native
plants or animals, biotic communities, geological or geographical
formations of scientific or educational interest, or open-space lands
used solely for recreation and for the enjoyment of scenic beauty,
is open to the general public subject to reasonable restrictions
concerning the needs of the land, and is owned and operated by a
scientific or charitable fund, foundation or corporation, the primary
interest of which is to preserve those natural areas, and that meets
all the requirements of Section 214, shall be deemed to be within
the exemption provided for in subdivision (b) of Sections 4 and 5 of
Article XIII of the Constitution of the State of California and
Section 214.
   (b) The exemption provided by this section shall not apply to any
property of an organization that owns in the aggregate 30,000 acres
or more in one county that were exempt under this section prior to
March 1, 1983, or that are proposed to be exempt, unless the
nonprofit organization that holds the property is constituted in such
a way as to be fully independent of the owner of any taxable real
property that is adjacent to the property otherwise qualifying for
tax exemption under this section.  For purposes of this section, the
nonprofit organization that holds the property shall be considered
fully independent if the exempt property is not used or operated by
that organization or by any other person so as to benefit any
officer, trustee, director, shareholder, member, employee,
contributor or bondholder of the exempt organization or operator, or
the owner of any adjacent property, or any other person, through the
distribution of profits, payment of excessive charges or
compensations, or the more advantageous pursuit of their business or
profession.
   (c) The exemption provided by this section shall not apply to
property that is reserved for future development.
   (d) This section shall be operative from the lien date in 1983 to
and including the lien date in 2012, after which date this section
shall become inoperative, and as of January 1, 2013, this section is
repealed.
  SEC. 2.  Notwithstanding Section 2229 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any property tax revenues lost by it
pursuant to this act.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.