BILL NUMBER: AB 946	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 16, 2011
	AMENDED IN SENATE  JULY 12, 2011

INTRODUCED BY   Assembly Member Butler

                        FEBRUARY 18, 2011

   An act to amend Section 95.31 of the Revenue and Taxation Code,
relating to local government finance  , and declaring the urgency
thereof, to   take effect immediately  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 946, as amended, Butler. Property tax administration: loan
program.
    Existing property tax law authorized an eligible county, as
defined, upon the recommendation of the assessor and by resolution of
its board of supervisors, to elect to participate in the
State-County Property Tax Administration  Loan  Program,
pursuant to which a participating county received, in specified
fiscal years, a loan from the state, as specified, for the purposes
of providing supplemental funding for that county's local
administration of the ad valorem property tax.
   This bill would reauthorize the State-County Property Tax
Administration  Loan  Program to allow  eligible
 counties  , as defined,  to elect to
participate in the program to receive a loan in each fiscal year from
the 2011-12 fiscal year to the 2015-16 fiscal year, inclusive. This
bill would also require the California Assessors' Association to
report to the Senate Committee on Budget and Fiscal Review and the
Assembly Committee on Budget regarding participating counties, as
specified. 
   The California Constitution requires the state to apply a minimum
amount of funding each fiscal year for the support of school
districts and community college districts. The amount of that minimum
funding obligation is required to be determined pursuant to one of
three tests, depending on specified factors.  
   This bill would require that the repayment of loans made pursuant
to the State-County Property Tax Administration Loan Program be made
in the next fiscal year in which school districts and community
college districts receive funding pursuant to either the 2nd or 3rd
of these tests. The bill would require that, for years in which
school districts and community college districts receive funding
pursuant to the first test, the amount of the loan be carried over
to, and repaid in, the next fiscal year in which school districts and
community college districts receive funding pursuant to either the
2nd or 3rd of these tests. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


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

  SECTION 1.  Section 95.31 of the Revenue and Taxation Code is
amended to read:
   95.31.  (a)  (1)   
Notwithstanding any other law, any  eligible  county
may, upon the recommendation of the county assessor, and by
resolution of the board of supervisors of that county adopted not
later than February 1 of the fiscal year for which it is to first
apply, elect to participate in the State-County Property Tax
Administration Loan Program. 
   (2) For the purposes of this section, an eligible county shall
mean a county in which additional property tax revenue allocated to
school entities would reduce the amount of General Fund moneys
apportioned to school entities. However, eligibility shall be
terminated when, in combination with resources in the Educational
Revenue Augmentation Fund, additional property tax revenues allocated
to school entities will not result in a reduction in the General
Fund apportionments. 
   (b) (1) In each fiscal year from the 2011-12 fiscal year to the
2015-16 fiscal year, inclusive,  an eligible   a
 county participating in the State-County Property Tax
Administration Loan Program may receive a loan for up to the amount
listed in paragraph (3).  For the period of January 1, 2012, to
June 30, 2012, inclusive, a county participating in the State-County
Property Tax Administration Loan Program may receive a loan for up to
one-half of the amount listed in paragraph (3).  The loan shall
be repaid by June 30 of the fiscal year following the year in which
the loan is made  , subject to the provisions specified in clause
(ii) of subparagraph (B) of paragraph (2)  . However, at the
discretion of the Director of Finance, the loan may be renewed once
for an additional 12-month period at the request of the participating
county board of supervisors.
   (2) If  an eligible   a  county elects
to participate in the State-County Property Tax Administration Loan
Program, it shall enter into a contractual agreement with the
Department of Finance. At a minimum, the contractual agreement shall
include the following:
   (A) The loan amount, as determined by the Director of Finance.
   (B) Repayment provisions, including the  interception
  following: 
    (i)     Interception  of Motor Vehicle
License Fee Account moneys apportioned pursuant to Section 11005 to
repay the General Fund. 
   (ii) Repayment of the loan shall be made in the next fiscal year
in which school districts and community college districts receive
funding pursuant to paragraph (2) or (3), as applicable, of
subdivision (b) of Section 8 of Article XVI of the California
Constitution. For a year in which school districts and community
college districts receive funding pursuant to paragraph (1) of
subdivision (b) of Section 8 of Article XVI of the California
Constitution, the amount of the loan shall be carried over to, and
repaid in, the next fiscal year in which school districts and
community college districts receive funding pursuant to paragraph (2)
or (3), as applicable, of subdivision (b) of Section 8 of Article
XVI of the California Constitution. 
   (C) A listing of the proposed use of the additional resources
including, but not limited to:
   (i) Proposed new positions.
   (ii) Increased automation costs.
   (D) Commencing in the 2012 fiscal year, an agreement to provide to
the Department of Finance, by March 31 of the fiscal year in which
the loan is made, a report projecting the impact of the increased
funding in the current and subsequent fiscal year.
   (E) An agreement to provide the Department of Finance an audit
report detailing the county's basis for satisfying the terms of the
loan agreement. The report shall be provided by October 1 of the
fiscal year following the year in which the loan is made.
   (F) An agreement to use the funds for the purposes stated, and,
should any portion of the funds be diverted to a different,
unapproved use, to return an amount equal to the diverted funds to
the state regardless of whether or not other terms of the agreement
are satisfied.
   (3) Upon request of the Department of Finance, the Controller
shall provide a loan to the following counties for up to the amount
specified by the Director of Finance, not to exceed the following
amounts:
Jurisdiction                             Amount
 Alameda .....................     $ 3,597,414.49 
 Alameda .....................       $  2,199,786 
Alpine ......................           50,  
1  00  , 0  .
 00
Amador ......................           84  
100  ,  884.74 
 000 
Butte .......................          339,2  
   2  07,43  1
 .56 
 Calaveras ...................         125,711.59 
 Calaveras ...................            100,000 
Colusa ......................           50,  
1  00  ,  0  .
 00
 Contra Costa ................       2,661,514.92 
 Contra Costa ................          1,627,492 
Del Norte ...................           50,  
1  00  , 0  .
 00
 El Dorado ...................         500,178.71 
 El Dorado ...................            305,855 
Fresno ......................        1,070,  
    65  0.3  4
 ,693 
Glenn .......................           50,  
1  00 ,  0  .
 00
Humboldt ....................          200,08  
   1  2  .7  2
 ,349 
 Imperial ....................         194,085.89 
 Imperial ....................            118,682 
Inyo ........................           76,2  
 1  8.55 
 00,000 
 Kern ........................       1,380,856.07 
 Kern ........................            844,381 
 Kings .......................         156,128.75 
 Kings .......................            100,000 
 Lake ........................         126,266.06 
 Lake ........................            100,000 
Lassen ......................           50,  
1  00  ,  0  .
 00
Los Angeles .................          1  1,94  9,
 1  54
 1,022.69 
 Madera ......................         202,353.21 
 Madera ......................            123,737 
 Marin .......................       1,033,995.76 
 Marin .......................            632,279 
Mariposa ....................           50,  
1  00  ,  0  .
 00
 Mendocino ...................         185,211.95 
 Mendocino ...................            113,255 
 Merced ......................         309,114.75 
 Merced ......................            189,021 
Modoc .......................           50,  
1  00  ,  0  .
 00
 Mono ........................         108,273.73 
 Mono ........................            100,000 
 Monterey ....................         911,532.24 
 Monterey ....................            557,393 
 Napa ........................         495,016.41 
 Napa ........................            302,698 
Nevada ......................          30  
18  7,  121.2 
 80  2
 Orange ......................       7,643,925.87 
 Orange ......................          4,674,190 
 Placer ......................       1,042,694.84 
 Placer ......................            637,598 
 Plumas ......................          70,809.37 
 Plumas ......................            100,000 
 Riverside ...................       3,896,893.30 
 Riverside ...................          2,382,914 
 Sacramento ..................       2,308,128.57 
 Sacramento ..................          1,411,399 
 San Benito ..................         111,129.49 
 San Benito ..................            100,000 
 San Bernardino ..............       3,114,103.20 
 San Bernardino ..............          1,904,245 
 San Diego ...................       7,108,480.10 
 San Diego ...................          4,346,770 
 San Francisco ...............       2,735,297.69 
 San Francisco ...............          1,672,609 
 San Joaquin .................       1,023,588.01 
 San Joaquin .................            625,915 
 San Luis Obispo .............         729,247.75 
 San Luis Obispo .............            445,928 
 San Mateo ...................       2,631,042.86 
 San Mateo ...................          1,608,858 
 Santa Barbara ...............       1,114,551.00 
 Santa Barbara ...............            681,538 
 Santa Clara .................       5,546,096.80 
 Santa Clara .................          3,391,387 
Santa Cruz ..................          609,5  
  37  2  4.84 
 ,719 
 Shasta ......................         285,322.39 
 Shasta ......................            174,472 
Sierra ......................           50,  
1  00  ,  0  .
 00
Siskiyou ....................           76  
100  ,  546.32 
 000 
 Solano ......................         754,150.47 
 Solano ......................            461,156 
 Sonoma ......................       1,246,693.76 
 Sonoma ......................            762,342 
Stanislaus ..................          673,1  
   4  5.07 
 11,622 
 Sutter ......................         149,209.53 
 Sutter ......................            100,000 
Tehama ......................           86,23  
   1  .96 
 00,000 
Trinity .....................           50,  
1  00  ,  0  .
 00
Tulare ......................          499,  
3  0  5,1  88
 .04 
 Tuolumne ....................         120,823.06 
 Tuolumne ....................            100,000 
 Ventura .....................       1,904,605.02 
 Ventura .....................          1,164,648 
Yolo ........................          373,673. 
   22  8  ,49
 8
Yuba ........................           88  
100  ,0  41.89 
 00 


   (4) The Department of Finance shall consider any or all of the
following items in determining the extent to which a county has
satisfied the terms and repaid the loan, pursuant to the contract, as
offered under this part:
   (A) County performance as indicated by the State Board of
Equalization's sample survey required pursuant to Section 15640 of
the Government Code.
   (B) Performance measures adopted by the California Assessors'
Association.
   (C) Reduction of backlog of assessment appeals and Proposition 8
declines in value.
   (D) County compliance with mandatory audits required by Section
469.
   (E) Reduction of backlogs in new construction, changes in
ownership, and supplemental roll.
   (F) Other measures, as determined by the Director of Finance.
   (5) The Director of Finance shall notify the Controller of any
participating county that fails to comply with the terms of the
agreement, including the repayment of the loan. When the Controller
receives notice from the Director of Finance, the Controller shall
make an apportionment to the General Fund on behalf of the
participating county in the amount of that required payment for the
purpose of making that payment. The Controller shall make that
payment only from moneys credited to the Motor Vehicle License Fee
Account in the Transportation Tax Fund to which the participating
county is entitled at that time under Chapter 5 (commencing with
Section 11001) of Part 5 of Division 2, and shall thereupon reduce,
by the amount of the payment, the subsequent allocation or
allocations to which the county would otherwise be entitled under
that chapter.
   (c) (1) Funds appropriated for purposes of this section shall be
used to enhance the property tax administration system by providing
supplemental resources. Amounts provided to any county as a loan
pursuant to this section shall not be used to supplant the current
level of funding. In order to participate in the State-County
Property Tax Administration Loan Program, a participating county
shall maintain a base staffing, including contract staff, and total
funding level in the county assessor's office, independent of the
loan proceeds provided pursuant to this act, equal to the levels in
the 2011-12 fiscal year exclusive of amounts provided to the assessor'
s office pursuant to Item 9100-102-001 of the Budget Act of 1994.
   (2) Prior to the assessor's recommendation for participation in
the State-County Property Tax Administration Loan Program, the
assessor shall consult with the county tax collector, and any other
county agency directly involved in property tax administration, to
discuss the needs of the program for the duration of the contractual
agreement.
   (d) A participating county may establish a tracking system whereby
a work or function number is assigned to each appraisal or
administrative activity. That system should provide statistical data
on the number of production units performed by each employee and the
positive and negative change in assessed value attributable to the
activities performed by each employee.
   (e) Notwithstanding Section 95.3, no amount of funds provided to
an eligible county pursuant to this section shall result in any
deduction from those property tax administrative costs that are
eligible for reimbursement pursuant to Section 95.3.
   (f) At the request of the Department of Finance, the board shall
assist the Department of Finance in evaluating contracts entered into
pursuant to this section.
   (g) On or before December 1, 2013, the California Assessors'
Association shall provide to the Senate Committee on Budget and
Fiscal Review and the Assembly Committee on Budget a report
summarizing the reports provided by participating counties.
   SEC. 2.    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 preserve funding for vital programs for education,
health, and public safety, it is necessary that this act take effect
immediately.