Amended in Assembly June 23, 2016

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 add Sections 214.17 and 259.14 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 to $10,000,000 in assessed value, 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.

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.

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

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

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.

This bill would make legislative findings to that effect.

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.

This bill would make legislative findings to that effect.

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 with regard to certain mandates no reimbursement is required by this act for a specified reason.

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.

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
18by an amount equivalent to 10 percent of those operating expenses.
19As used herein, operating expenses include depreciation based on
20cost of replacement and amortization of, and interest on,
21indebtedness.

22(2) No part of the net earnings of the owner inures to the benefit
23of any private shareholder or individual.

24(3) The property is used for the actual operation of the exempt
25activity, and does not exceed an amount of property reasonably
26necessary to the accomplishment of the exempt purpose.

P4    1(A) For the purposes of determining whether the property is
2used for the actual operation of the exempt activity, consideration
3shall not be given to use of the property for either or both of the
4following described activities if that use is occasional:

5(i) The owner conducts fundraising activities on the property
6and the proceeds derived from those activities are not unrelated
7business taxable income, as defined in Section 512 of the Internal
8Revenue Code, of the owner and are used to further the exempt
9activity of the owner.

10(ii) The owner permits any other organization that meets all of
11the requirements of this subdivision, other than ownership of the
12property, to conduct fundraising activities on the property and the
13proceeds derived from those activities are not unrelated business
14taxable income, as defined in Section 512 of the Internal Revenue
15Code, of the organization, are not subject to the tax on unrelated
16business taxable income that is imposed by Section 511 of the
17Internal Revenue Code, and are used to further the exempt activity
18of the organization.

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

20(i) “Occasional use” means use of the property on an irregular
21or intermittent basis by the qualifying owner or any other qualifying
22organization described in clause (ii) of subparagraph (A) that is
23incidental to the primary activities of the owner or the other
24organization.

25(ii) “Fundraising activities” means both activities involving the
26direct solicitation of money or other property and the anticipated
27exchange of goods or services for money between the soliciting
28organization and the organization or person solicited.

29(C) Subparagraph (A) shall have no application in determining
30whether paragraph (3) has been satisfied unless the owner of the
31property and any other organization using the property as provided
32in subparagraph (A) have filed with the assessor a valid
33organizational clearance certificate issued pursuant to Section
34254.6.

35(D) For the purposes of determining whether the property is
36used for the actual operation of the exempt activity, consideration
37shall not be given to the use of the property for meetings conducted
38by any other organization if the meetings are incidental to the other
39organization’s primary activities, are not fundraising meetings or
40activities as defined in subparagraph (B), are held no more than
P5    1once per week, and the other organization and its use of the
2property meet all other requirements of paragraphs (1) to (5),
3inclusive, of this subdivision. The owner or the other organization
4also shall file with the assessor a copy of a valid, unrevoked letter
5or ruling from the Internal Revenue Service or the Franchise Tax
6Board stating that the other organization, or the national
7organization of which it is a local chapter or affiliate, qualifies as
8an exempt organization under Section 501(c)(3) or 501(c)(4) of
9the Internal Revenue Code or Section 23701d, 23701f, or 23701w.

10(E) Nothing in subparagraph (A), (B), (C), or (D) shall be
11construed to either enlarge or restrict the exemption provided for
12in subdivision (b) of Section 4 and Section 5 of Article XIII of the
13 California Constitution and this section.

14(4) The property is not used or operated by the owner or by any
15other person so as to benefit any officer, trustee, director,
16shareholder, member, employee, contributor, or bondholder of the
17owner or operator, or any other person, through the distribution
18of profits, payment of excessive charges or compensations, or the
19more advantageous pursuit of their business or profession.

20(5) The property is not used by the owner or members thereof
21for fraternal or lodge purposes, or for social club purposes except
22where that use is clearly incidental to a primary religious, hospital,
23scientific, or charitable purpose.

24(6) The property is irrevocably dedicated to religious, charitable,
25scientific, or hospital purposes and upon the liquidation,
26dissolution, or abandonment of the owner will not inure to the
27benefit of any private person except a fund, foundation, or
28corporation organized and operated for religious, hospital,
29scientific, or charitable purposes.

30(7) The property, if used exclusively for scientific purposes, is
31used by a foundation or institution that, in addition to complying
32with the foregoing requirements for the exemption of charitable
33organizations in general, has been chartered by the Congress of
34the United States (except that this requirement shall not apply
35when the scientific purposes are medical research), and whose
36objects are the encouragement or conduct of scientific
37investigation, research, and discovery for the benefit of the
38community at large.

39The exemption provided for herein shall be known as the
40“welfare exemption.” This exemption shall be in addition to any
P6    1other exemption now provided by law, and the existence of the
2exemption provision in paragraph (2) of subdivision (a) of Section
3202 shall not preclude the exemption under this section for museum
4or library property. Except as provided in subdivision (e), this
5section shall not be construed to enlarge the college exemption.

6(b) Property used exclusively for school purposes of less than
7collegiate grade and owned and operated by religious, hospital, or
8charitable funds, foundations, limited liability companies, or
9corporations, which property and funds, foundations, limited
10liability companies, or corporations meet all of the requirements
11of subdivision (a), shall be deemed to be within the exemption
12provided for in subdivision (b) of Section 4 and Section 5 of Article
13XIII of the California Constitution and this section.

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

22(d) Property used exclusively for a noncommercial educational
23FM broadcast station or an educational television station, and
24owned and operated by religious, hospital, scientific, or charitable
25funds, foundations, limited liability companies, or corporations
26meeting all of the requirements of subdivision (a), shall be deemed
27to be within the exemption provided for in subdivision (b) of
28Section 4 and Section 5 of Article XIII of the California
29Constitution and this section.

30(e) Property used exclusively for religious, charitable, scientific,
31or hospital purposes and owned and operated by religious, hospital,
32scientific, or charitable funds, foundations, limited liability
33companies, or corporations or educational institutions of collegiate
34grade, as defined in Section 203, which property and funds,
35foundations, limited liability companies, corporations, or
36educational institutions meet all of the requirements of subdivision
37(a), shall be deemed to be within the exemption provided for in
38subdivision (b) of Section 4 and Section 5 of Article XIII of the
39California Constitution and this section. As to educational
40institutions of collegiate grade, as defined in Section 203, the
P7    1requirements of paragraph (6) of subdivision (a) shall be deemed
2to be met if both of the following are met:

3(1) The property of the educational institution is irrevocably
4dedicated in its articles of incorporation to charitable and
5educational purposes, to religious and educational purposes, or to
6educational purposes.

7(2) The articles of incorporation of the educational institution
8provide for distribution of its property upon its liquidation,
9dissolution, or abandonment to a fund, foundation, or corporation
10organized and operated for religious, hospital, scientific, charitable,
11or educational purposes meeting the requirements for exemption
12provided by Section 203 or this section.

13(f) Property used exclusively for housing and related facilities
14for elderly or handicapped families and financed by, including,
15but not limited to, the federal government pursuant to Section 202
16of Public Law 86-372 (12 U.S.C. Sec. 1701q), as amended, Section
17231 of Public Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of
18Public Law 90-448 (12 U.S.C. Sec. 1715z), or Section 811 of
19Public Law 101-625 (42 U.S.C. Sec. 8013), and owned and
20operated by religious, hospital, scientific, or charitable funds,
21foundations, limited liability companies, or corporations meeting
22all of the requirements of this section shall be deemed to be within
23the exemption provided for in subdivision (b) of Section 4 and
24Section 5 of Article XIII of the California Constitution and this
25section.

26The amendment of this paragraph made by Chapter 1102 of the
27Statutes of 1984 does not constitute a change in, but is declaratory
28of, existing law. However, no refund of property taxes shall be
29required as a result of this amendment for any fiscal year prior to
30the fiscal year in which the amendment takes effect.

31Property used exclusively for housing and related facilities for
32elderly or handicapped families at which supplemental care or
33services designed to meet the special needs of elderly or
34handicapped residents are not provided, or that is not financed by
35the federal government pursuant to Section 202 of Public Law
3686-372 (12 U.S.C. Sec. 1701q), as amended, Section 231 of Public
37Law 73-479 (12 U.S.C. Sec. 1715v), Section 236 of Public Law
3890-448 (12 U.S.C. Sec. 1715z), or Section 811 of Public Law
39101-625 (42 U.S.C. Sec. 8013), shall not be entitled to exemption
40pursuant to this subdivision unless the property is used for housing
P8    1and related facilities for low- and moderate-income elderly or
2handicapped families. Property that would otherwise be exempt
3pursuant to this subdivision, except that it includes some housing
4and related facilities for other than low- or moderate-income elderly
5or handicapped families, shall be entitled to a partial exemption.
6The partial exemption shall be equal to that percentage of the value
7of the property that is equal to the percentage that the number of
8low- and moderate-income elderly and handicapped families
9represents of the total number of families occupying the property.

10As used in this subdivision, “low and moderate income” has the
11same meaning as the term “persons and families of low or moderate
12income” as defined by Section 50093 of the Health and Safety
13Code.

14(g) (1) Property used exclusively for rental housing and related
15facilities and owned and operated by religious, hospital, scientific,
16or charitable funds, foundations, limited liability companies, or
17corporations, including limited partnerships in which the managing
18general partner is an eligible nonprofit corporation or eligible
19limited liability company, meeting all of the requirements of this
20section, or by veterans’ organizations, as described in Section
21215.1, meeting all the requirements of paragraphs (1) to (7),
22inclusive, of subdivision (a), shall be deemed to be within the
23exemption provided for in subdivision (b) of Section 4 and Section
245 of Article XIII of the California Constitution and this section
25and shall be entitled to a partial exemption equal to that percentage
26 of the value of the property that is equal to the percentage that the
27number of units serving lower income households represents of
28the total number of residential units in any year in which any of
29the following criteria applies:

30(A) The acquisition, rehabilitation, development, or operation
31of the property, or any combination of these factors, is financed
32with tax-exempt mortgage revenue bonds or general obligation
33bonds, or is financed by local, state, or federal loans or grants and
34the rents of the occupants who are lower income households do
35not exceed those prescribed by deed restrictions or regulatory
36agreements pursuant to the terms of the financing or financial
37assistance.

38(B) The owner of the property is eligible for and receives
39low-income housing tax credits pursuant to Section 42 of the
40Internal Revenue Code of 1986, as added by Public Law 99-514.

P9    1(C) In the case of a claim, other than a claim with respect to
2property owned by a limited partnership in which the managing
3general partner is an eligible nonprofit corporation, that is filed
4for the 2000-01 fiscal year or any fiscal year thereafter, 90 percent
5or more of the occupants of the property are lower income
6households whose rent does not exceed the rent prescribed by
7Section 50053 of the Health and Safety Code. The total exemption
8amount allowed under this subdivision to a taxpayer, with respect
9to a single property or multiple properties for any fiscal year on
10the sole basis of the application of this subparagraph, may not
11exceed ten million dollars ($10,000,000) in assessed value.

12(D) (i) The property was previously purchased and owned by
13the Department of Transportation pursuant to a consent decree
14requiring housing mitigation measures relating to the construction
15of a freeway and is now solely owned by an organization that
16qualifies as an exempt organization under Section 501(c)(3) of the
17Internal Revenue Code.

18(ii) This subparagraph shall not apply to property owned by a
19limited partnership in which the managing partner is an eligible
20nonprofit corporation.

21(2) In order to be eligible for the exemption provided by this
22subdivision, the owner of the property shall do both of the
23 following:

24(A) (i) For any claim filed for the 2000-01 fiscal year or any
25fiscal year thereafter, certify and ensure, subject to the limitation
26in clause (ii), that there is an enforceable and verifiable agreement
27with a public agency, a recorded deed restriction, or other legal
28document that restricts the project’s usage and that provides that
29the units designated for use by lower income households are
30continuously available to or occupied by lower income households
31at rents that do not exceed those prescribed by Section 50053 of
32the Health and Safety Code, or, to the extent that the terms of
33federal, state, or local financing or financial assistance conflicts
34with Section 50053, rents that do not exceed those prescribed by
35the terms of the financing or financial assistance.

36(ii) In the case of a limited partnership in which the managing
37general partner is an eligible nonprofit corporation, the restriction
38and provision specified in clause (i) shall be contained in an
39enforceable and verifiable agreement with a public agency, or in
P10   1a recorded deed restriction to which the limited partnership
2certifies.

3(B) Certify that the funds that would have been necessary to
4pay property taxes are used to maintain the affordability of, or
5reduce rents otherwise necessary for, the units occupied by lower
6income households.

7(3) As used in this subdivision:

8(A) “Lower income households” has the same meaning as the
9term “lower income households” as defined by Section 50079.5
10of the Health and Safety Code.

11(B) “Related facilities” means any manager’s units and any and
12all common area spaces that are included within the physical
13boundaries of the rental housing development, including, but not
14limited to, common area space, walkways, balconies, patios,
15clubhouse space, meeting rooms, laundrybegin delete facilitiesend deletebegin insert facilities,end insert and
16parking areas, except any portions of the overall development that
17are nonexempt commercial space.

18(C) “Units serving lower income households” shall mean units
19that are occupied by lower income households at an affordable
20rent, as defined in Section 50053 of the Health and Safety Code
21or, to the extent that the terms of federal, state, or local financing
22or financial assistance conflicts with Section 50053, rents that do
23not exceed those prescribed by the terms of the financing or
24financial assistance. Units reserved for lower income households
25at an affordable rent that are temporarily vacant due to tenant
26turnover or repairs shall be counted as occupied.

27(h) Property used exclusively for an emergency or temporary
28shelter and related facilities for homeless persons and families and
29owned and operated by religious, hospital, scientific, or charitable
30funds, foundations, limited liability companies, or corporations
31meeting all of the requirements of this section shall be deemed to
32be within the exemption provided for in subdivision (b) of Section
334 and Section 5 of Article XIII of the California Constitution and
34this section. Property that otherwise would be exempt pursuant to
35this subdivision, except that it includes housing and related
36facilities for other than an emergency or temporary shelter, shall
37be entitled to a partial exemption.

38As used in this subdivision, “emergency or temporary shelter”
39means a facility that would be eligible for funding pursuant to
P11   1Chapter 11 (commencing with Section 50800) of Part 2 of Division
231 of the Health and Safety Code.

3(i) Property used exclusively for housing and related facilities
4for employees of religious, charitable, scientific, or hospital
5organizations that meet all the requirements of subdivision (a) and
6owned and operated by funds, foundations, limited liability
7companies, or corporations that meet all the requirements of
8subdivision (a) shall be deemed to be within the exemption
9provided for in subdivision (b) of Section 4 and Section 5 of Article
10XIII of the California Constitution and this section to the extent
11the residential use of the property is institutionally necessary for
12the operation of the organization.

13(j) For purposes of this section, charitable purposes include
14educational purposes. For purposes of this subdivision,
15“educational purposes” means those educational purposes and
16activities for the benefit of the community as a whole or an
17unascertainable and indefinite portion thereof, and do not include
18those educational purposes and activities that are primarily for the
19benefit of an organization’s shareholders. Educational activities
20include the study of relevant information, the dissemination of that
21information to interested members of the general public, and the
22participation of interested members of the general public.

23(k) In the case of property used exclusively for the exempt
24purposes specified in this section, owned and operated by limited
25liability companies that are organized and operated for those
26purposes, the State Board of Equalization shall adopt regulations
27to specify the ownership, organizational, and operational
28requirements for those companies to qualify for the exemption
29provided by this section.

30(l) The amendments made by Chapter 354 of the Statutes of
312004 shall apply with respect to lien dates occurring on and after
32January 1, 2005.

33(m) The amendments made by the act adding this subdivision
34shall apply with respect to lien dates occurring on and after January
351, 2017.

36

SEC. 2.  

Section 214.17 is added to the Revenue and Taxation
37Code
, to read:

38

214.17.  

(a) For purposes of this section:

39(1) “Total exemption amount limitation” means the exemption
40amount limitation with respect to a single property or multiple
P12   1properties that is specified in subparagraph (C) of paragraph (1)
2of subdivision (g) of Section 214, as that section read before
3January 1, 2017.

4(2) (A) “Qualified property” means property used exclusively
5for rental housing and related facilities where 90 percent or more
6of the occupants of the property are lower income households
7whose rent does not exceed the rent prescribed by Section 50053
8of the Health and Safety Code and that qualifies for exemption
9under Section 214 on the sole basis of this criteria as specified in
10subparagraph (C) of paragraph (1) of subdivision (g) of Section
11214.

12(B) “Qualified property” does not include property owned by
13a limited partnership in which the managing general partner is an
14eligible nonprofit organization, as described in subparagraph (C)
15of paragraph (1) of subdivision (g) of Section 214.

16(3) “Qualified taxpayer” means a taxpayer subject to the total
17exemption amount limitation.

18(4) “Qualified claim” means a claim for exemption that was
19filed for a qualified property with the assessor on and after January
201, 2013, and before January 1, 2017, for which the assessor granted
21a partial exemption.

22(5) “Qualified ad valorembegin delete tax, and related interest, or penalty”end delete
23begin insert tax in excess of the total exemption amount limitation, and related
24interest or penaltyend insert
begin insertend insert means that portion of ad valorem tax levied
25to a qualified taxpayer on qualified property with respect to a single
26property or multiple properties that does not exceed one hundred
27thousand dollars ($100,000) of tax, and any interest or penalty
28imposed with regard to that portion of tax.

29(b) (1) To the extent that the amount canceled or refunded does
30not result in a total exemption amount in excess of one hundred
31thousand dollars ($100,000) of tax being allowed to a qualified
32taxpayer with respect to a single property or multiple properties
33that are qualified property for any fiscal year, each of the following
34shall be canceled or refunded as provided:

35(A) Any outstanding qualified ad valorem tax in excess of the
36total exemption amount limitation, and related interest or penalty,
37which was levied or imposed on and after January 1, 2013, and
38before January 1, 2017, with respect to a qualified property for
39 which a qualified claim was filed, shall be canceled.

P13   1(B) Any qualified ad valorem tax in excess of the total
2exemption amount limitation, and related interest or penalty, which
3was levied or imposed on and after January 1, 2013, and before
4January 1, 2017, with respect to a qualified property for which a
5qualified claim was filed, and paid on or before January 1, 2017,
6shall be refunded.

7(2) On or after January 1, 2017, an escape assessment shall not
8be levied on qualified property if that amount would be subject to
9cancellation or refund under paragraph (1).

10

SEC. 3.  

Section 259.14 is added to the Revenue and Taxation
11Code
, to read:

12

259.14.  

(a) The claim for welfare exemption on qualified
13property, in addition to giving any other information as prescribed
14by the board, shall be accompanied by an affidavit that provides
15both of the following:

16(1) A list of units occupied by lower income households for
17which the exemption is claimed.

18(2) All of the following nonpersonally identifiable information
19about the occupants of the units listed pursuant to paragraph (1):

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

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

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

23(b) The affidavit required to accompany the claim for welfare
24exemption pursuant to subdivision (a) shall be confidential and
25shall not be subject to public disclosure.

26(c) For purposes of this section, “qualified property” has the
27same meaning as that term is defined in Section 214.17.

28

SEC. 4.  

The Legislature finds and declares that Section 2 of
29this act fulfills a statewide public purpose because it addresses
30California’s serious shortage of affordable, decent, safe, and
31sanitary housing for persons and families of low or moderate
32income, including the elderly and handicapped, by providing
33necessary property tax relief for certain tax-exempt organizations
34so that these tax-exempt organizations can provide this affordable
35housing for persons and families of low or moderate income.

36

SEC. 5.  

The Legislature finds and declares that Section 3 of
37this act, which adds Section 259.14 to the Revenue and Taxation
38Code, imposes a limitation on the public’s right of access to the
39meetings of public bodies or the writings of public officials and
40agencies within the meaning of Section 3 of Article I of the
P14   1California Constitution. Pursuant to that constitutional provision,
2the Legislature makes the following findings to demonstrate the
3interest protected by this limitation and the need for protecting
4that interest:

5In order to protect the privacy of an individual’s personal and
6financial information contained in an affidavit accompanying a
7claim for welfare exemption, as required by this act, it is in the
8state’s interest to limit public access to information.

9

SEC. 6.  

The Legislature finds and declares that Section 3 of
10this act, which adds Section 259.14 to the Revenue and Taxation
11Code, furthers, within the meaning of paragraph (7) of subdivision
12(b) of Section 3 of Article I of the California Constitution, the
13purposes of that constitutional section as it relates to the right of
14public access to the meetings of local public bodies or the writings
15of local public officials and local agencies. Pursuant to paragraph
16(7) of subdivision (b) of Section 3 of Article I of the California
17Constitution, the Legislature makes the following findings:

18The protection of sensitive personal and personal financial
19information contained in an affidavit accompanying a claim for
20welfare exemption, as required by this act, is consistent with and
21furthers proper access to documents and information in the
22possession of local government agencies.

23

SEC. 7.  

No reimbursement is required by this act pursuant to
24Section 6 of Article XIII B of the California Constitution for certain
25costs that may be incurred by a local agency or school district
26because, in that regard, the only costs that may be incurred by a
27local agency or school district under this act would result from a
28legislative mandate that is within the scope of paragraph (7) of
29subdivision (b) of Section 3 of Article I of the California
30Constitution.

31However, if the Commission on State Mandates determines that
32this act contains other costs mandated by the state, reimbursement
33to local agencies and school districts for those costs shall be made
34pursuant to Part 7 (commencing with Section 17500) of Division
354 of Title 2 of the Government Code.

36

SEC. 8.  

Notwithstanding Section 2229 of the Revenue and
37Taxation Code, no appropriation is made by this act and the state
P15   1shall not reimburse any local agency for any property tax revenues
2lost by it pursuant to this act.



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