BILL NUMBER: AB 900	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 27, 2010
	AMENDED IN SENATE  AUGUST 20, 2010
	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN SENATE  JULY 13, 2009
	AMENDED IN SENATE  JUNE 30, 2009
	AMENDED IN ASSEMBLY  APRIL 28, 2009

INTRODUCED BY   Assembly Members De Leon and De La Torre
   (Principal coauthor: Senator Calderon)

                        FEBRUARY 26, 2009

   An act to amend Section 96.31 of the Revenue and Taxation Code,
relating to property taxation, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 900, as amended, De Leon. Property taxation: City of Bell:
refunds for overpayment.
   Existing property tax law establishes various procedures and
requirements with respect to the annual allocation of ad valorem
property tax revenues derived from the ad valorem taxation of locally
assessed property. These procedures include a reduction in the
allocation of ad valorem property taxes to a jurisdiction that
imposes a rate in excess of the maximum rate authorized by law in
amounts equal to the amount collected pursuant to the excess rate,
and requires any amount subtracted from a jurisdiction's allocation
to be allocated to elementary, high school, and unified school
districts, as provided.
   This bill would instead require, with respect to the ad valorem
property taxes collected in excess of the maximum rate authorized by
law in the 2007-08, 2008-09, and 2009-10 fiscal years for the City of
Bell, that the City of Bell pay the County of Los Angeles an amount
equal to the amount of ad valorem property taxes collected in excess
of the maximum rate, and would require the County of Los Angeles to
make refunds to taxpayers, as provided. This bill would require those
amounts remaining after making refunds to taxpayers, as specified,
to be allocated to elementary, high school, and unified school
districts, as provided. This bill would require the City of Bell to
reimburse the county auditor for the actual and reasonable costs
incurred by the county  auditor  in administering
these refunds and allocations  , including specified
administrative overhead costs  . This bill would also make
findings and declarations regarding the necessity of a special
statute.
   By imposing additional duties upon county officials in issuing
refunds or reducing the allocation of 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 no reimbursement is required by this
act for a specified reason.
    The bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 96.31 of the Revenue and Taxation Code is
amended to read:
   96.31.  (a) For the 1985-86 fiscal year and each fiscal year
thereafter, no jurisdiction shall impose a property tax rate pursuant
to subdivision (a) of Section 93, unless it is imposed for one or
more of the following purposes:
   (1) To make annual payments for the interest and principal on
general obligation bonds approved by the voters before July 1, 1978,
and on bonded indebtedness for the acquisition and improvement of
real property approved by the voters by a two-thirds vote after June
4, 1986.
   (2) To make payments to the State of California under contracts
for the sale, delivery, or use of water entered into pursuant to
California Water Resources Development Bond Act in Chapter 8
(commencing with Section 12930) of Part 6 of Division 6 of the Water
Code or to make payments to the United States or another public
agency under voter-approved contracts for the sale, delivery, or use
of water or for the repayment of voter-approved obligations for the
construction, maintenance, or operation of water conservation,
treatment, or distribution facilities, provided that the indebtedness
was approved by the voters before July 1, 1978.
   (3) To make payments pursuant to lease-purchase programs approved
by the voters before July 1, 1978, provided that the jurisdiction
imposed the property tax rate in the 1982-83 fiscal year.
   (4) To make payments in support of pension programs approved by
the voters before July 1, 1978, provided that the local agency
imposed the property tax rate in the 1982-83 or 1983-84 fiscal year.
   (5) To make payments in support of paramedic, library, or zoo
programs approved by the voters before July 1, 1978, provided that
the jurisdiction imposed the property tax rate in the 1982-83 fiscal
year.
   (6) To make payments for the interest and principal on an
indebtedness, pursuant to Section 5544.2 of the Public Resources
Code, approved by the voters before July 1, 1978, provided that the
local agency imposed the property tax rate in the 1982-83 fiscal
year.
   (b) In the 1985-86 fiscal year and any fiscal year thereafter, a
jurisdiction shall not impose a property tax rate, pursuant to
subdivision (a) of Section 93, in excess of the rate it imposed in
the 1982-83 or 1983-84 fiscal year. Notwithstanding the limit imposed
by this subdivision, a higher property tax rate may be imposed
whenever necessary to make payments for any of the purposes specified
in paragraphs (1), (2), and (3) of subdivision (a). However, no
property tax rate increase in excess of the rate imposed in the
1984-85 fiscal year shall be imposed if the purpose of the rate
increase is to fund a reduction in the rates charged for water at the
time of the property tax rate increase.
   (c) Notwithstanding subdivisions (a) and (b), a charter city may
levy an ad valorem property tax rate to make payments in support of a
retirement system for fire and police employees if all of the
following criteria are met:
   (1) The retirement system is part of the city's charter and was
approved by the voters before July 1, 1978.
   (2) The city did not levy a separate ad valorem property tax rate
to support the retirement system in the 1983-84 fiscal year.
   (3) The retirement system provides for a cost-of-living adjustment
that is indexed to a consumer price index and does not limit the
annual increases which may be paid to members after their retirement.

   (4) The retirement system is not currently available to newly
hired fire and police employees and will not be available in the
future.
   (5) Before January 1, 1985, the city unsuccessfully litigated a
limit to the cost-of-living adjustment that may be paid to members of
the retirement system after their retirement.
   (6) After July 1, 1985, the city conducted an election and a
question authorizing the levying of an ad valorem property tax for
the purpose of making payments in support of the retirement system
received the affirmative votes of at least 60 percent of those voting
on that question.
   The proceeds of an ad valorem property tax rate levied pursuant to
this subdivision shall be used only to pay for the obligations of a
retirement system described by this subdivision. The proceeds shall
not be used to finance more than 75 percent of the annual obligations
of this retirement system. A city shall not levy an ad valorem
property tax pursuant to this subdivision after June 30, 2034.
   (d) (1) Except as otherwise provided in paragraph (2), if a
jurisdiction imposes a rate in excess of the maximum rate authorized
by subdivision (a), (b), or (c), the amount of property tax allocated
to the jurisdiction pursuant to this chapter shall be reduced by one
dollar ($1) for each one dollar ($1) of property tax revenue
attributable to the excess rate. Any property tax revenue that has
been subtracted from a jurisdiction's allocation pursuant to this
subdivision shall be allocated to elementary, high school, and
unified school districts within the jurisdiction's jurisdiction in
proportion to the average daily attendance of each district.
   (2) With respect to the ad valorem property taxes collected
pursuant to paragraph (4) of subdivision (a) in excess of the maximum
rate authorized by subdivision (b) in the 2007-08, 2008-09, and
2009-10 fiscal years for the City of Bell, all of the following shall
apply:
   (A) (i) On or before December 31, 2010, the City of Bell shall pay
to the County of Los Angeles an amount equal to the amount of ad
valorem property tax collected pursuant to paragraph (4) of
subdivision (a) in excess of the maximum rate authorized by
subdivision (b) in the 2007-08, 2008-09, and 2009-10 fiscal years,
including interest thereon calculated at the average rate earned by
the City of Bell on its idle funds in the 2007-08, 2008-09, and
2009-10 fiscal years.
   (ii) From the amounts paid to the County of Los Angeles as
required by clause (i), the County of Los Angeles shall make a refund
to any taxpayer who paid the ad valorem property tax collected as
specified in clause (i), in a manner generally consistent with the
County of Los Angeles tax refund practices.
   (B) (i) If, by December 31, 2011, the County of Los Angeles is
unable to locate a taxpayer who paid the ad valorem property tax
collected as specified in clause (i) of subparagraph (A) in order to
make a refund to the taxpayer, those amounts remaining from those
amounts paid to the County of Los Angeles pursuant to subparagraph
(A) shall be allocated to elementary, high school, and unified school
districts as provided by paragraph (1).
   (ii) The requirement of paragraph (1) shall apply only with
respect to any amounts remaining after making refunds to taxpayers as
provided by clause (i).
   (C) The City of Bell shall reimburse the county auditor for the
actual and reasonable costs incurred by the county  auditor
 to administer this subdivision  , including applicable
administrative overhead costs as permitted by federal Office of
Management and Budget Circular A-87 standards  .
   (e) This section shall be deemed to be a limit on the maximum
property tax rate pursuant to Section 20 of Article XIII of the
California Constitution.
  SEC. 2.  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 of the unique circumstances encountered by the City of Bell
with respect to the collection of property taxes.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
this act provides for reimbursement to a local agency in the form of
additional revenues that are sufficient in amount to fund the new
duties established by this act, within the meaning of Section 17556
of the Government Code.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to ensure that taxpayers in the City of Bell who overpaid
on their property taxes are reimbursed, it is necessary for this act
to take effect immediately.