Amended in Senate May 2, 2016

Senate BillNo. 996


Introduced by Senator Hill

February 10, 2016


An act to amend Section 214 of, and to addbegin delete Sectionend deletebegin insert Sectionsend insert 214.17begin insert and 259.14end insert to, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 996, as amended, Hill. Property taxation: welfare exemption.

The California Constitution authorizes the Legislature to exempt from taxation property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to this constitutional authority, existing law partially exempts from property taxation property used exclusively for rental housing and related facilities, if specified criteria are met, including, except in the case of a limited partnership in which the managing general partner is a nonprofit corporation eligible for the exemption, that 90% or more of the occupants of the property are lower income households whose rents do not exceed the rent limits prescribed by a specified law. Existing law limits the total exemption amount allowed to a taxpayer, with respect to a single property or multiple properties for any fiscal year on the sole basis of the application of this criterion, to $20,000 of tax.

This bill would increase that total exemption amount allowed tobegin delete $100,000 of tax,end deletebegin insert $10,000,000 in assessed value,end insert with respect to lien dates occurring on and after January 1, 2017.

This bill would require any outstanding qualified ad valorem tax in excess of the $20,000 limitation, and related interest or penalty, which was levied or imposed on and after January 1, 2013, and before January 1, 2017, with respect to qualified property for which a qualified claim was filed, to be canceled, and any such qualified ad valorem tax, and related interest or penalty levied or imposed that was paid on or before January 1, 2017, to be refunded, to the extent that the amount canceled or refunded does not result in a total exemption amount in excess of $100,000 of tax being allowed to a qualified taxpayer with respect to a single property or multiple properties for any fiscal year. The bill would, on and after January 1, 2017, prohibit an escape assessment from being levied on qualified property if that amount would be subject to cancellation or refund pursuant to this bill.

begin insert

This bill would require a claim for the welfare exemption on qualified property to be accompanied by an affidavit containing specified information regarding the units occupied by lower income households for which the exemption is claimed.

end insert
begin insert

By imposing new duties upon county tax officials, this bill would impose a state-mandated local program.

end insert

This bill would make legislative findings and declarations regarding the public purpose served by the bill.

begin delete

By imposing new duties upon county tax officials with respect to the refund of these property tax payments, this bill would impose a state-mandated local program.

end delete
begin delete

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.

end delete
begin delete

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.

end delete
begin insert

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert
begin insert

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert
begin insert

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.

end insert
begin insert

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

end insert
begin insert

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

end insert

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 the bill.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 214 of the Revenue and Taxation Code
2 is amended to read:

3

214.  

(a) Property used exclusively for religious, hospital,
4scientific, or charitable purposes owned and operated by
5community chests, funds, foundations, limited liability companies,
6or corporations organized and operated for religious, hospital,
7scientific, or charitable purposes is exempt from taxation, including
8ad valorem taxes to pay the interest and redemption charges on
9any indebtedness approved by the voters prior to July 1, 1978, or
10any bonded indebtedness for the acquisition or improvement of
11real property approved on or after July 1, 1978, by two-thirds of
12the votes cast by the voters voting on the proposition, if:

13(1) The owner is not organized or operated for profit. However,
14in the case of hospitals, the organization shall not be deemed to
15be organized or operated for profit if, during the immediately
16preceding fiscal year, operating revenues, exclusive of gifts,
17endowments and grants-in-aid, did not exceed operating expenses
P4    1by an amount equivalent to 10 percent of those operating expenses.
2As used herein, operating expenses include depreciation based on
3cost of replacement and amortization of, and interest on,
4indebtedness.

5(2) No part of the net earnings of the owner inures to the benefit
6of any private shareholder or individual.

7(3) The property is used for the actual operation of the exempt
8activity, and does not exceed an amount of property reasonably
9necessary to the accomplishment of the exempt purpose.

10(A) For the purposes of determining whether the property is
11used for the actual operation of the exempt activity, consideration
12shall not be given to use of the property for either or both of the
13following described activities if that use is occasional:

14(i) The owner conducts fundraising activities on the property
15and the proceeds derived from those activities are not unrelated
16business taxable income, as defined in Section 512 of the Internal
17Revenue Code, of the owner and are used to further the exempt
18activity of the owner.

19(ii) The owner permits any other organization that meets all of
20the requirements of this subdivision, other than ownership of the
21property, to conduct fundraising activities on the property and the
22proceeds derived from those activities are not unrelated business
23taxable income, as defined in Section 512 of the Internal Revenue
24Code, of the organization, are not subject to the tax on unrelated
25business taxable income that is imposed by Section 511 of the
26Internal Revenue Code, and are used to further the exempt activity
27of the organization.

28(B) For purposes of subparagraph (A):

29(i) “Occasional use” means use of the property on an irregular
30or intermittent basis by the qualifying owner or any other qualifying
31organization described in clause (ii) of subparagraph (A) that is
32incidental to the primary activities of the owner or the other
33organization.

34(ii) “Fundraising activities” means both activities involving the
35direct solicitation of money or other property and the anticipated
36exchange of goods or services for money between the soliciting
37organization and the organization or person solicited.

38(C) Subparagraph (A) shall have no application in determining
39whether paragraph (3) has been satisfied unless the owner of the
40property and any other organization using the property as provided
P5    1in subparagraph (A) have filed with the assessor a valid
2organizational clearance certificate issued pursuant to Section
3254.6.

4(D) For the purposes of determining whether the property is
5used for the actual operation of the exempt activity, consideration
6shall not be given to the use of the property for meetings conducted
7by any other organization if the meetings are incidental to the other
8organization’s primary activities, are not fundraising meetings or
9activities as defined in subparagraph (B), are held no more than
10once per week, and the other organization and its use of the
11property meet all other requirements of paragraphs (1) to (5),
12inclusive, of this subdivision. The owner or the other organization
13also shall file with the assessor a copy of a valid, unrevoked letter
14or ruling from the Internal Revenue Service or the Franchise Tax
15Board stating that the other organization, or the national
16organization of which it is a local chapter or affiliate, qualifies as
17an exempt organization under Section 501(c)(3) or 501(c)(4) of
18the Internal Revenue Code or Section 23701d, 23701f, or 23701w.

19(E) Nothing in subparagraph (A), (B), (C), or (D) shall be
20construed to either enlarge or restrict the exemption provided for
21in subdivision (b) of Section 4 and Section 5 of Article XIII of the
22California Constitution and this section.

23(4) The property is not used or operated by the owner or by any
24other person so as to benefit any officer, trustee, director,
25shareholder, member, employee, contributor, or bondholder of the
26owner or operator, or any other person, through the distribution
27of profits, payment of excessive charges or compensations, or the
28more advantageous pursuit of their business or profession.

29(5) The property is not used by the owner or members thereof
30for fraternal or lodge purposes, or for social club purposes except
31where that use is clearly incidental to a primary religious, hospital,
32scientific, or charitable purpose.

33(6) The property is irrevocably dedicated to religious, charitable,
34scientific, or hospital purposes and upon the liquidation,
35dissolution, or abandonment of the owner will not inure to the
36benefit of any private person except a fund, foundation, or
37corporation organized and operated for religious, hospital,
38scientific, or charitable purposes.

39(7) The property, if used exclusively for scientific purposes, is
40used by a foundation or institution that, in addition to complying
P6    1with the foregoing requirements for the exemption of charitable
2organizations in general, has been chartered by the Congress of
3the United States (except that this requirement shall not apply
4when the scientific purposes are medical research), and whose
5objects are the encouragement or conduct of scientific
6investigation, research, and discovery for the benefit of the
7community at large.

8The exemption provided for herein shall be known as the
9“welfare exemption.” This exemption shall be in addition to any
10other exemption now provided by law, and the existence of the
11exemption provision in paragraph (2) of subdivision (a) of Section
12202 shall not preclude the exemption under this section for museum
13or library property. Except as provided in subdivision (e), this
14section shall not be construed to enlarge the college exemption.

15(b) Property used exclusively for school purposes of less than
16collegiate grade and owned and operated by religious, hospital, or
17charitable funds, foundations, limited liability companies, or
18corporations, which property and funds, foundations, limited
19liability companies, or corporations meet all of the requirements
20of subdivision (a), shall be deemed to be within the exemption
21provided for in subdivision (b) of Section 4 and Section 5 of Article
22XIII of the California Constitution and this section.

23(c) Property used exclusively for nursery school purposes and
24owned and operated by religious, hospital, or charitable funds,
25foundations, limited liability companies, or corporations, which
26property and funds, foundations, limited liability companies, or
27corporations meet all the requirements of subdivision (a), shall be
28deemed to be within the exemption provided for in subdivision
29(b) of Section 4 and Section 5 of Article XIII of the California
30Constitution and this section.

31(d) Property used exclusively for a noncommercial educational
32FM broadcast station or an educational television station, and
33owned and operated by religious, hospital, scientific, or charitable
34funds, foundations, limited liability companies, or corporations
35meeting all of the requirements of subdivision (a), shall be deemed
36to be within the exemption provided for in subdivision (b) of
37Section 4 and Section 5 of Article XIII of the California
38Constitution and this section.

39(e) Property used exclusively for religious, charitable, scientific,
40or hospital purposes and owned and operated by religious, hospital,
P7    1scientific, or charitable funds, foundations, limited liability
2companies, or corporations or educational institutions of collegiate
3grade, as defined in Section 203, which property and funds,
4foundations, limited liability companies, corporations, or
5educational institutions meet all of the requirements of subdivision
6(a), shall be deemed to be within the exemption provided for in
7subdivision (b) of Section 4 and Section 5 of Article XIII of the
8California Constitution and this section. As to educational
9institutions of collegiate grade, as defined in Section 203, the
10requirements of paragraph (6) of subdivision (a) shall be deemed
11to be met if both of the following are met:

12(1) The property of the educational institution is irrevocably
13dedicated in its articles of incorporation to charitable and
14educational purposes, to religious and educational purposes, or to
15educational purposes.

16(2) The articles of incorporation of the educational institution
17provide for distribution of its property upon its liquidation,
18dissolution, or abandonment to a fund, foundation, or corporation
19organized and operated for religious, hospital, scientific, charitable,
20or educational purposes meeting the requirements for exemption
21provided by Section 203 or this section.

22(f) Property used exclusively for housing and related facilities
23for elderly or handicapped families and financed by, including,
24but not limited to, the federal government pursuant to Section 202
25of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section
26231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of
27Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of
28Public Law 101-625 (42 U.S.C. Sec. 8013), and owned and
29operated by religious, hospital, scientific, or charitable funds,
30foundations, limited liability companies, or corporations meeting
31all of the requirements of this section shall be deemed to be within
32the exemption provided for in subdivision (b) of Section 4 and
33Section 5 of Article XIII of the California Constitution and this
34section.

35The amendment of this paragraph made by Chapter 1102 of the
36Statutes of 1984 does not constitute a change in, but is declaratory
37of, existing law. However, no refund of property taxes shall be
38required as a result of this amendment for any fiscal year prior to
39the fiscal year in which the amendment takes effect.

P8    1Property used exclusively for housing and related facilities for
2elderly or handicapped families at which supplemental care or
3services designed to meet the special needs of elderly or
4handicapped residents are not provided, or that is not financed by
5the federal government pursuant to Section 202 of Public Law
686-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public
7Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law
890-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law
9101-625 (42 U.S.C. Sec. 8013), shall not be entitled to exemption
10pursuant to this subdivision unless the property is used for housing
11and related facilities for low- and moderate-income elderly or
12handicapped families. Property that would otherwise be exempt
13pursuant to this subdivision, except that it includes some housing
14and related facilities for other than low- or moderate-income elderly
15or handicapped families, shall be entitled to a partial exemption.
16The partial exemption shall be equal to that percentage of the value
17of the property that is equal to the percentage that the number of
18low- and moderate-income elderly and handicapped families
19represents of the total number of families occupying the property.

20As used in this subdivision, “low and moderate income” has the
21same meaning as the term “persons and families of low or moderate
22income” as defined by Section 50093 of the Health and Safety
23Code.

24(g) (1) Property used exclusively for rental housing and related
25facilities and owned and operated by religious, hospital, scientific,
26or charitable funds, foundations, limited liability companies, or
27corporations, including limited partnerships in which the managing
28general partner is an eligible nonprofit corporation or eligible
29 limited liability company, meeting all of the requirements of this
30section, or by veterans’ organizations, as described in Section
31215.1, meeting all the requirements of paragraphs (1) to (7),
32inclusive, of subdivision (a), shall be deemed to be within the
33exemption provided for in subdivision (b) of Section 4 and Section
345 of Article XIII of the California Constitution and this section
35and shall be entitled to a partial exemption equal to that percentage
36 of the value of the property that is equal to the percentage that the
37number of units serving lower income households represents of
38the total number of residential units in any year in which any of
39the following criteria applies:

P9    1(A) The acquisition, rehabilitation, development, or operation
2of the property, or any combination of these factors, is financed
3with tax-exempt mortgage revenue bonds or general obligation
4bonds, or is financed by local, state, or federal loans or grants and
5the rents of the occupants who are lower income households do
6not exceed those prescribed by deed restrictions or regulatory
7agreements pursuant to the terms of the financing or financial
8assistance.

9(B) The owner of the property is eligible for and receives
10low-income housing tax credits pursuant to Section 42 of the
11Internal Revenue Code of 1986, as added by Public Law 99-514.

12(C) In the case of a claim, other than a claim with respect to
13property owned by a limited partnership in which the managing
14general partner is an eligible nonprofit corporation, that is filed
15for the 2000-01 fiscal year or any fiscal year thereafter, 90 percent
16or more of the occupants of the property are lower income
17households whose rent does not exceed the rent prescribed by
18Section 50053 of the Health and Safety Code. The total exemption
19amount allowed under this subdivision to a taxpayer, with respect
20to a single property or multiple properties for any fiscal year on
21the sole basis of the application of this subparagraph, may not
22exceedbegin delete one hundred thousand dollars ($100,000) of tax.end deletebegin insert ten million
23dollars ($10,000,000) in assessed value.end insert

24(D) (i) The property was previously purchased and owned by
25the Department of Transportation pursuant to a consent decree
26requiring housing mitigation measures relating to the construction
27of a freeway and is now solely owned by an organization that
28qualifies as an exempt organization under Section 501(c)(3) of the
29Internal Revenue Code.

30(ii) This subparagraph shall not apply to property owned by a
31limited partnership in which the managing partner is an eligible
32nonprofit corporation.

33(2) In order to be eligible for the exemption provided by this
34subdivision, the owner of the property shall do both of the
35 following:

36(A) (i) For any claim filed for the 2000-01 fiscal year or any
37fiscal year thereafter, certify and ensure, subject to the limitation
38in clause (ii), that there is an enforceable and verifiable agreement
39with a public agency, a recorded deed restriction, or other legal
40document that restricts the project’s usage and that provides that
P10   1the units designated for use by lower income households are
2continuously available to or occupied by lower income households
3at rents that do not exceed those prescribed by Section 50053 of
4the Health and Safety Code, or, to the extent that the terms of
5federal, state, or local financing or financial assistance conflicts
6with Section 50053, rents that do not exceed those prescribed by
7the terms of the financing or financial assistance.

8(ii) In the case of a limited partnership in which the managing
9general partner is an eligible nonprofit corporation, the restriction
10and provision specified in clause (i) shall be contained in an
11enforceable and verifiable agreement with a public agency, or in
12a recorded deed restriction to which the limited partnership
13certifies.

14(B) Certify that the funds that would have been necessary to
15pay property taxes are used to maintain the affordability of, or
16reduce rents otherwise necessary for, the units occupied by lower
17income households.

18(3) As used in this subdivision:

19(A) “Lower income households” has the same meaning as the
20term “lower income households” as defined by Section 50079.5
21of the Health and Safety Code.

22(B) “Related facilities” means any manager’s units and any and
23all common area spaces that are included within the physical
24boundaries of the rental housing development, including, but not
25limited to, common area space, walkways, balconies, patios,
26clubhouse space, meeting rooms, laundry facilities and parking
27areas, except any portions of the overall development that are
28nonexempt commercial space.

29(C) “Units serving lower income households” shall mean units
30that are occupied by lower income households at an affordable
31rent, as defined in Section 50053 of the Health and Safety Code
32or, to the extent that the terms of federal, state, or local financing
33or financial assistance conflicts with Section 50053, rents that do
34not exceed those prescribed by the terms of the financing or
35financial assistance. Units reserved for lower income households
36at an affordable rent that are temporarily vacant due to tenant
37turnover or repairs shall be counted as occupied.

38(h) Property used exclusively for an emergency or temporary
39shelter and related facilities for homeless persons and families and
40owned and operated by religious, hospital, scientific, or charitable
P11   1funds, foundations, limited liability companies, or corporations
2meeting all of the requirements of this section shall be deemed to
3be within the exemption provided for in subdivision (b) of Section
44 and Section 5 of Article XIII of the California Constitution and
5this section. Property that otherwise would be exempt pursuant to
6this subdivision, except that it includes housing and related
7facilities for other than an emergency or temporary shelter, shall
8be entitled to a partial exemption.

9As used in this subdivision, “emergency or temporary shelter”
10means a facility that would be eligible for funding pursuant to
11Chapter 11 (commencing with Section 50800) of Part 2 of Division
1231 of the Health and Safety Code.

13(i) Property used exclusively for housing and related facilities
14for employees of religious, charitable, scientific, or hospital
15organizations that meet all the requirements of subdivision (a) and
16owned and operated by funds, foundations, limited liability
17companies, or corporations that meet all the requirements of
18subdivision (a) shall be deemed to be within the exemption
19provided for in subdivision (b) of Section 4 and Section 5 of Article
20XIII of the California Constitution and this section to the extent
21the residential use of the property is institutionally necessary for
22the operation of the organization.

23(j) For purposes of this section, charitable purposes include
24educational purposes. For purposes of this subdivision,
25“educational purposes” means those educational purposes and
26activities for the benefit of the community as a whole or an
27unascertainable and indefinite portion thereof, and do not include
28those educational purposes and activities that are primarily for the
29benefit of an organization’s shareholders. Educational activities
30include the study of relevant information, the dissemination of that
31information to interested members of the general public, and the
32participation of interested members of the general public.

33(k) In the case of property used exclusively for the exempt
34purposes specified in this section, owned and operated by limited
35liability companies that are organized and operated for those
36purposes, the State Board of Equalization shall adopt regulations
37to specify the ownership, organizational, and operational
38requirements for those companies to qualify for the exemption
39provided by this section.

P12   1(l) The amendments made by Chapter 354 of the Statutes of
22004 shall apply with respect to lien dates occurring on and after
3January 1, 2005.

4(m) The amendments made by the act adding this subdivision
5shall apply with respect to lien dates occurring on and after January
61, 2017.

7

SEC. 2.  

Section 214.17 is added to the Revenue and Taxation
8Code
, to read:

9

214.17.  

(a) For purposes of this section:

10(1) “Total exemption amount limitation” means the exemption
11amount limitation with respect to a single property or multiple
12properties that is specified in subparagraph (C) of paragraph (1)
13of subdivision (g) of Section 214, as that section read before
14January 1, 2017.

15(2) (A) “Qualified property” means property used exclusively
16for rental housing and related facilities where 90 percent or more
17of the occupants of the property are lower income households
18whose rent does not exceed the rent prescribed by Section 50053
19of the Health and Safety Code and that qualifies for exemption
20under Section 214 on the sole basis of this criteria as specified in
21subparagraph (C) of paragraph (1) of subdivision (g) of Section
22214.

23(B) “Qualified property” does not include property owned by
24a limited partnership in which the managing general partner is an
25eligible nonprofit organization, as described in subparagraph (C)
26of paragraph (1) of subdivision (g) of Section 214.

27(3) “Qualified taxpayer” means a taxpayer subject to the total
28exemption amount limitation.

29(4) “Qualified claim” means a claim for exemption that was
30filed for a qualified property with the assessor on and after January
311, 2013, and before January 1, 2017, for which the assessor granted
32a partial exemption.

33(5) “Qualified ad valorem tax, and related interest, or penalty”
34means that portion of ad valorem tax levied to a qualified taxpayer
35on qualified property with respect to a single property or multiple
36properties that does not exceed one hundred thousand dollars
37($100,000) of tax, and any interest or penalty imposed with regard
38to that portion of tax.

39(b) (1) To the extent that the amount canceled or refunded does
40not result in a total exemption amount in excess of one hundred
P13   1thousand dollars ($100,000) of tax being allowed to a qualified
2taxpayer with respect to a single property or multiple properties
3that are qualified property for any fiscal year, each of the following
4shall be canceled or refunded as provided:

5(A) Any outstanding qualified ad valorem tax in excess of the
6total exemption amount limitation, and related interest or penalty,
7which was levied or imposed on and after January 1, 2013, and
8before January 1, 2017, with respect to a qualified property for
9 which a qualified claim was filed, shall be canceled.

10(B) Any qualified ad valorem tax in excess of the total
11exemption amount limitation, and related interest or penalty, which
12was levied or imposed on and after January 1, 2013, and before
13January 1, 2017, with respect to a qualified property for which a
14qualified claim was filed, and paid on or before January 1, 2017,
15shall be refunded.

16(2) On or after January 1, 2017, an escape assessment shall not
17be levied on qualified property if that amount would be subject to
18cancellation or refund under paragraph (1).

19begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 259.14 is added to the end insertbegin insertRevenue and Taxation
20Code
end insert
begin insert, to read:end insert

begin insert
21

begin insert259.14.end insert  

(a) The claim for welfare exemption on qualified
22property, in addition to giving any other information as prescribed
23by the board, shall be accompanied by an affidavit that provides
24both of the following:

25
(1) A list of units occupied by lower income households for
26which the exemption is claimed.

27
(2) All of the following nonpersonally identifiable information
28about the occupants of the units listed pursuant to paragraph (1):

29
(A) The actual household income of the occupant.

30
(B) The maximum rent that may be charged to the occupant.

31
(C) The actual rent charged to the occupant.

32
(b) The affidavit required to accompany the claim for welfare
33exemption pursuant to subdivision (a) shall be confidential and
34shall not be subject to public disclosure.

35
(c) For purposes of this section, “qualified property” has the
36same meaning as that term is defined in Section 214.17.

end insert
37

begin deleteSEC. 3.end delete
38
begin insertSEC. 4.end insert  

The Legislature finds and declares that Section 2 of
39this act fulfills a statewide public purpose because it addresses
40California’s serious shortage of affordable, decent, safe, and
P14   1sanitary housing for persons and families of low or moderate
2income, including the elderly and handicapped, by providing
3necessary property tax relief for certain tax-exempt organizations
4so that these tax-exempt organizations can provide this affordable
5housing for persons and families of low or moderate income.

6begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

The Legislature finds and declares that Section 3 of
7this act, which adds Section 259.14 to the Revenue and Taxation
8Code, imposes a limitation on the public’s right of access to the
9meetings of public bodies or the writings of public officials and
10agencies within the meaning of Section 3 of Article I of the
11California Constitution. Pursuant to that constitutional provision,
12the Legislature makes the following findings to demonstrate the
13interest protected by this limitation and the need for protecting
14that interest:

end insert
begin insert

15
In order to protect the privacy of an individual’s personal and
16financial information contained in an affidavit accompanying a
17claim for welfare exemption, as required by this act, it is in the
18state’s interest to limit public access to information.

end insert
19begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

The Legislature finds and declares that Section 3 of
20this act, which adds Section 259.14 to the Revenue and Taxation
21Code, furthers, within the meaning of paragraph (7) of subdivision
22(b) of Section 3 of Article I of the California Constitution, the
23purposes of that constitutional section as it relates to the right of
24public access to the meetings of local public bodies or the writings
25of local public officials and local agencies. Pursuant to paragraph
26(7) of subdivision (b) of Section 3 of Article I of the California
27Constitution, the Legislature makes the following findings:

end insert
begin insert

28
The protection of sensitive personal and personal financial
29information contained in an affidavit accompanying a claim for
30welfare exemption, as required by this act, is consistent with and
31furthers proper access to documents and information in the
32possession of local government agencies.

end insert
33begin insert

begin insertSEC. 7.end insert  

end insert

begin insertNo reimbursement is required by this act pursuant to
34Section 6 of Article XIII B of the California Constitution for certain
35costs that may be incurred by a local agency or school district
36because, in that regard, the only costs that may be incurred by a
37local agency or school district under this act would result from a
38legislative mandate that is within the scope of paragraph (7) of
39subdivision (b) of Section 3 of Article I of the California
40Constitution.end insert

begin insert

P15   1
However, if the Commission on State Mandates determines that
2this act contains other costs mandated by the state, reimbursement
3to local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.

end insert
begin delete
6

SEC. 4.  

If the Commission on State Mandates determines that
7this act contains costs mandated by the state, reimbursement to
8local agencies and school districts for those costs shall be made
9pursuant to Part 7 (commencing with Section 17500) of Division
104 of Title 2 of the Government Code.

end delete
11

begin deleteSEC. 5.end delete
12
begin insertSEC. 8.end insert  

Notwithstanding Section 2229 of the Revenue and
13Taxation Code, no appropriation is made by this act and the state
14shall not reimburse any local agency for any property tax revenues
15lost by it pursuant to this act.



O

    98