BILL ANALYSIS Ó AB 1053 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1053 (Cooley) As Amended May 1, 2014 2/3 vote. Urgency ----------------------------------------------------------------- |ASSEMBLY: | |(May 16, 2013) |SENATE: |37-0 |(May 5, 2014) | ----------------------------------------------------------------- (vote not relevant) Original Committee Reference: INS. SUMMARY : Allows the Sacramento Metropolitan Fire District (District) to return money improperly collected from some district taxpayers from 2005 through 2012. The Senate amendments delete the Assembly version of this bill, and instead: 1)Allow the District to return to a payor any money the District improperly collected from the payor due to a clerical error in the District's administration of the Special Fire Tax for the Rancho Murieta and Sloughhouse area levied from 2005 to 2012, inclusive. 2)Provide that the bill shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date. 3)Make a number of findings and declarations related to the improperly collected money from the public due to a clerical error. 4)Find and declare that a special law is necessary and that a general law cannot be made applicable because of the unique and limited need of the District to return money it improperly and unintentionally collected in the form of a special tax. 5)Contain an urgency clause. FISCAL EFFECT : None COMMENTS : AB 1053 Page 2 1)Background and existing law. Proposition 218 (1996) established that a tax levied by a special-purpose district is a special tax requiring two-thirds voter approval. State law allows a district's legislative body to levy a special tax with two-thirds voter approval (AB 2345 (Chappie), Chapter 672, Statutes of 1980). The District is a special district organized pursuant to the Fire Protection District Law of 1987 (SB 515 (Bergeson), Chapter 1013, Statutes of 1987). The District serves a population of over 640,000 in a 417 square mile service area within Sacramento County, including the cities of Citrus Heights and Rancho Cordova and several unincorporated communities. The District was formed when the Sacramento County Fire Protection District and the American River Fire Protection District merged on December 1, 2000. More than two-thirds of the voters in the Sloughhouse and Rancho Murieta areas within the American River Fire Protection District approved Measure Q on the November 7, 2000, general election ballot. That ballot measure authorized the District to raise revenues for fire suppression and emergency ambulance services by levying an annual parcel tax at a rate not to exceed $100 per parcel. Last year, the District discovered that it was levying the tax on approximately 3,800 parcels of property that should not have been subject to the tax. The District erroneously began collecting taxes from these parcels in the 2005-06 fiscal year. State law allows a local government to refund money from parcel taxes that appear on the property tax bill if those taxes were erroneously collected, but generally prohibits a local government from refunding erroneously collected parcel taxes in response to a claim that is filed more than four years after the date of the payment that is to be refunded. 2)Purpose of this bill. This bill allows the District, notwithstanding any other law, to return to a payor any money the District improperly collected from the payor due to a clerical error in the District's administration of the Special Fire Tax for the Rancho Murieta and Sloughhouse area, levied from 2005 to 2012, inclusive. This bill specifies that its provisions remain in effect only until January 1, 2015, and as of that date are repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends AB 1053 Page 3 that date. This bill contains legislative findings and declarations that specify the ways in which the bill serves a public purpose. This bill is sponsored by the District. 3)Author's statement. According to the author, "In 2013 the District discovered that due to a clerical error, the owners of approximately 3,800 pieces of property located outside the boundary of a local taxation area had been inappropriately charged for fire protection services since 2005, as if they were part of the tax area. Upon making this discovery, the District implemented a special claims procedure through which affected property owners could apply refunds. However, consistent with current law, the District has not yet been able to accept or approve any claims for tax refunds where the taxes had been paid more than four years before the date the claim was presented." 4)Arguments in support. Supporters argue that this bill allows the District to efficiently and quickly return money to property owners. 5)Arguments in opposition. None on file. 6)Urgency clause. This bill contains an urgency clause allowing the provisions of the bill to take effect immediately upon enactment, and requires a two-thirds vote on the Assembly Floor. 7)The Assembly version of this bill was deleted in the Senate, and consequently, the subject matter has not been heard by an Assembly policy committee this legislative session. Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958 FN: 0003305