BILL NUMBER: AB 1679 CHAPTERED
BILL TEXT
CHAPTER 643
FILED WITH SECRETARY OF STATE OCTOBER 10, 1999
APPROVED BY GOVERNOR OCTOBER 5, 1999
PASSED THE ASSEMBLY SEPTEMBER 9, 1999
PASSED THE SENATE SEPTEMBER 7, 1999
AMENDED IN SENATE SEPTEMBER 2, 1999
AMENDED IN SENATE AUGUST 18, 1999
AMENDED IN SENATE AUGUST 17, 1999
AMENDED IN SENATE JUNE 28, 1999
AMENDED IN ASSEMBLY MAY 6, 1999
INTRODUCED BY Committee on Local Government (Longville (Chair),
Maddox (Vice Chair), Thompson, Thomson, and Torlakson)
MARCH 18, 1999
An act to amend Sections 17521, 17553, 17559, 17561, 17564, 17571,
23713, 25536, 34460, 53601, and 53635 of the Government Code, to
amend Sections 17959.3, 42302, and 42302.1 of the Health and Safety
Code, and to amend Sections 97.2 and 7285.5 of the Revenue and
Taxation Code, relating to government.
LEGISLATIVE COUNSEL'S DIGEST
AB 1679, Committee on Local Government. Local Government Omnibus
Act of 1999.
(1) Existing law requires the Commission on State Mandates to
adopt procedures to receive claims of state-mandated local costs.
This bill would impose additional procedural requirements on the
commission with regard to initial reimbursement claims, parameters,
guidelines, reduced claims, and claiming instructions. The bill
would also revise the deadlines for submitting claims to the
commission.
(2) Existing law authorizes the county board of supervisors by a
4/5 vote to take various actions concerning the leasing, subleasing,
and management of property.
This bill would additionally authorize the San Bernardino County
Board of Supervisors by a 4/5 vote to directly enter into a lease
involving all or any part of county-owned, leased, or managed
property devoted for agricultural purposes.
(3) Existing law requires that one copy of a county charter
proposal or change in the charter ratified by the voters be recorded
in the office of the county recorder and filed in the office of the
county elections official with other specified documents. A copy of
a city or city and county charter proposal or change in the charter
ratified by the voters is required to be filed with the recorder of
the county in which the city is located or the recorder of the city
and county.
This bill would additionally require the filing of those documents
with the Secretary of State.
(4) Existing law prescribes the types of investments in which a
local agency may invest its funds. One of these investment types is
medium-term notes of a maximum term of 5 years maturity issued by
domestic corporations or depository institutions.
This bill would define "medium-term notes" for this purpose as all
corporate and depository institution debt securities of a specified
maturity and rating.
(5) Existing law repeals on January 1, 2000, an authorization for
a city or county to permit windows in dwellings to open into areas
designed and built as passive solar energy collectors.
This bill would delete this repealer, thereby extending this
authority indefinitely.
(6) Existing law authorizes the district board of an air pollution
control district or of an air quality management district to
establish, by regulation, a permit system that requires, except as
provided, that before any person builds, erects, alters, replaces,
operates, or uses any article, machine, equipment, or other
contrivance that may cause the issuance of air contaminants, the
person obtain a permit to do so from the air pollution control
officer of that district. Existing law provides that if a permit is
denied, the applicant, within 10 days after receipt of the notice of
denial, may request the hearing board of the district to hold a
hearing on whether the permit was properly denied. Existing law also
provides that within 10 days of any decision or action pertaining to
the issuance of a permit by a district, or within 10 days after
mailing, or after publication and mailing, as specified, of a notice
of issuance of a permit, any aggrieved person who participated in the
action before the district may request the hearing board of the
district to hold a public hearing to determine whether the permit was
properly issued.
This bill would extend those 10-day time periods to 30 days.
(7) Existing law provides for the allocation of property tax
revenues to special districts according to specified formulas.
This bill would revise the formula for determining the total
annual revenues of a special district that provides fire protection
or fire suppression services. This provision would not become
operative if AB 417 is enacted, as specified.
(8) Under existing law, the board of supervisors of a county is
authorized to establish an authority for specific purposes and to
impose a transactions and use tax of 0.25% or 0.5% if, among other
things, the ordinance is approved by a majority of the voters voting
on the issue.
This bill instead would provide that the vote to approve the
ordinance shall be in the amount that is otherwise required by law.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the Local
Government Omnibus Act of 1999.
SEC. 2. Section 17521 of the Government Code is amended to read:
17521. "Test claim" means the first claim, including claims
joined or consolidated with the first claim, filed with the
commission alleging that a particular statute or executive order
imposes costs mandated by the state.
SEC. 3. Section 17553 of the Government Code is amended to read:
17553. (a) The commission shall adopt procedures for receiving
claims pursuant to this article and for providing a hearing on those
claims. The hearing procedure shall provide for presentation of
evidence by the claimant, the Department of Finance and any other
affected department or agency, and any other interested person. The
procedures shall ensure that a statewide cost estimate is adopted
within 12 months after receipt of a test claim, when a determination
is made by the commission that a mandate exists. This deadline may
be extended for up to six months upon the request of either the
claimant or the commission. Hearing of a claim may be postponed at
the request of the claimant, without prejudice, until the next
scheduled hearing.
(b) The procedures adopted by the commission pursuant to
subdivision (a) shall include the following:
(1) Provisions for acceptance of more than one claim on the same
statute or executive order relating to the same statute or executive
order filed with the commission, and, absent agreement by the test
claimants to the contrary, to designate the first to file as the lead
test claimant.
(2) Provisions for consolidating test claims relating to the same
statute or executive order filed with the commission with time limits
that do not exceed 90 days from the initial filing for consolidating
the test claims and for claimants to designate a single contact for
information regarding the test claim.
(3) Provisions for claimants to designate a single claimant for a
test claim relating to the same statute or executive order filed with
the commission, with time limits that do not exceed 90 days from the
initial filing for making that designation.
(c) If a completed test claim is not received by the commission
within 30 calendar days from the date that an incomplete test claim
was returned by the commission, the original test claim filing date
may be disallowed, and a new test claim may be accepted on the same
statute or executive order.
(d) In addition, the commission shall determine whether an
incorrect reduction claim is complete within 10 days after the date
that the incorrect reduction claim is filed. If the commission
determines that an incorrect reduction claim is not complete, the
commission shall notify the local agency and school district that
filed the claim stating the reasons that the claim is not complete.
The local agency or school district shall have 30 days to complete
the claim. The commission shall serve a copy of the complete
incorrect reduction claim on the Controller. The Controller shall
have no more than 90 days after the date the claim is delivered or
mailed to file any rebuttal to an incorrect reduction claim. The
failure of the Controller to file a rebuttal to an incorrect
reduction claim shall not serve to delay the consideration of the
claim by the commission.
SEC. 4. Section 17559 of the Government Code is amended to read:
17559. (a) The commission may order a reconsideration of all or
part of a test claim or incorrect reduction claim on petition of any
party. The power to order a reconsideration or amend a test claim
decision shall expire 30 days after the statement of decision is
delivered or mailed to the claimant. If additional time is needed to
evaluate a petition for reconsideration filed prior to the
expiration of the 30-day period, the commission may grant a stay of
that expiration for no more than 30 days, solely for the purpose of
considering the petition. If no action is taken on a petition within
the time allowed for ordering reconsideration, the petition shall be
deemed denied.
(b) A claimant or the state may commence a proceeding in
accordance with the provisions of Section 1094.5 of the Code of Civil
Procedure to set aside a decision of the commission on the ground
that the commission's decision is not supported by substantial
evidence. The court may order the commission to hold another hearing
regarding the claim and may direct the commission on what basis the
claim is to receive a rehearing.
SEC. 5. Section 17561 of the Government Code is amended to read:
17561. (a) The state shall reimburse each local agency and school
district for all "costs mandated by the state," as defined in
Section 17514.
(b) (1) For the initial fiscal year during which these costs are
incurred, reimbursement funds shall be provided as follows:
(A) Any statute mandating these costs shall provide an
appropriation therefor.
(B) Any executive order mandating these costs shall be accompanied
by a bill appropriating the funds therefor, or alternatively, an
appropriation for these costs shall be included in the Budget Bill
for the next succeeding fiscal year. The executive order shall cite
that item of appropriation in the Budget Bill or that appropriation
in any other bill which is intended to serve as the source from which
the Controller may pay the claims of local agencies and school
districts.
(2) In subsequent fiscal years appropriations for these costs
shall be included in the annual Governor's Budget and in the
accompanying Budget Bill. In addition, appropriations to reimburse
local agencies and school districts for continuing costs resulting
from chaptered bills or executive orders for which claims have been
awarded pursuant to subdivision (a) of Section 17551 shall be
included in the annual Governor's Budget and in the accompanying
Budget Bill subsequent to the enactment of the local government
claims bill pursuant to Section 17600 that includes the amounts
awarded relating to these chaptered bills or executive orders.
(c) The amount appropriated to reimburse local agencies and school
districts for costs mandated by the state shall be appropriated to
the Controller for disbursement.
(d) The Controller shall pay any eligible claim pursuant to this
section within 60 days after the filing deadline for claims for
reimbursement or 15 days after the date the appropriation for the
claim is effective, whichever is later. The Controller shall
disburse reimbursement funds to local agencies or school districts if
the costs of these mandates are not payable to state agencies, or to
state agencies who would otherwise collect the costs of these
mandates from local agencies or school districts in the form of fees,
premiums, or payments. When disbursing reimbursement funds to local
agencies or school districts, the Controller shall disburse them as
follows:
(1) For initial reimbursement claims, the Controller shall issue
claiming instructions to the relevant local agencies pursuant to
Section 17558. Issuance of the claiming instructions shall
constitute a notice of the right of the local agencies and school
districts to file reimbursement claims, based upon parameters and
guidelines adopted by the commission.
(A) When claiming instructions are issued by the Controller
pursuant to Section 17558 for each mandate determined pursuant to
Section 17555 that requires state reimbursement, each local agency or
school district to which the mandate is applicable shall submit
claims for initial fiscal year costs to the Controller within 120
days of the issuance date for the claiming instructions.
(B) When the commission is requested to review the claiming
instructions pursuant to Section 17571, each local agency or school
district to which the mandate is applicable shall submit a claim for
reimbursement within 120 days after the commission reviews the
claiming instructions for reimbursement issued by the Controller.
(C) If the local agency or school district does not submit a claim
for reimbursement within the 120-day period, or submits a claim
pursuant to revised claiming instructions, it may submit its claim
for reimbursement as specified in Section 17560. The Controller
shall pay these claims from the funds appropriated therefor, provided
that the Controller (i) may audit the records of any local agency or
school district to verify the actual amount of the mandated costs,
and (ii) may reduce any claim that the Controller determines is
excessive or unreasonable.
(2) In subsequent fiscal years each local agency or school
district shall submit its claims as specified in Section 17560. The
Controller shall pay these claims from funds appropriated therefor,
provided that the Controller (A) may audit the records of any local
agency or school district to verify the actual amount of the mandated
costs, (B) may reduce any claim that the Controller determines is
excessive or unreasonable, and (C) shall adjust the payment to
correct for any underpayments or overpayments which occurred in
previous fiscal years.
(3) When paying a timely filed claim for initial reimbursement,
the Controller shall withhold 20 percent of the amount of the claim
until the claim is audited to verify the actual amount of the
mandated costs. All initial reimbursement claims for all fiscal
years required to be filed on their initial filing date for a
state-mandated local program shall be considered as one claim for the
purpose of computing any late claim penalty. Any claim for initial
reimbursement filed after the filing deadline shall be reduced by 10
percent of the amount that would have been allowed had the claim been
timely filed, provided that the amount of this reduction shall not
exceed one thousand dollars ($1,000). The Controller may withhold
payment of any late claim for initial reimbursement until the next
deadline for funded claims unless sufficient funds are available to
pay the claim after all timely filed claims have been paid. In no
case shall a reimbursement claim be paid if submitted more than one
year after the filing deadline specified in the Controller's claiming
instructions on funded mandates contained in a claims bill.
SEC. 6. Section 17564 of the Government Code is amended to read:
17564. (a) No claim shall be made pursuant to Sections 17551 and
17561, nor shall any payment be made on claims submitted pursuant to
Sections 17551 and 17561, unless these claims exceed two hundred
dollars ($200), provided that a county superintendent of schools or
county may submit a combined claim on behalf of school districts,
direct service districts, or special districts within their county if
the combined claim exceeds two hundred dollars ($200) even if the
individual school district's, direct service district's, or special
district's claims do not each exceed two hundred dollars ($200). The
county superintendent of schools or the county shall determine if
the submission of the combined claim is economically feasible and
shall be responsible for disbursing the funds to each school, direct
service, or special district. These combined claims may be filed
only when the county superintendent of schools or the county is the
fiscal agent for the districts. All subsequent claims based upon the
same mandate shall only be filed in the combined form unless a
school district, direct service district, or special district
provides to the county superintendent of schools or county and to the
Controller, at least 180 days prior to the deadline for filing the
claim, a written notice of its intent to file a separate claim.
(b) Claims for direct and indirect costs filed pursuant to Section
17561 shall be filed in the manner prescribed in the parameters and
guidelines.
SEC. 7. Section 17571 of the Government Code is amended to read:
17571. The commission, upon request of a local agency or school
district, shall review the claiming instructions issued by the
Controller or any other authorized state agency for reimbursement of
mandated costs. If the commission determines that the claiming
instructions do not conform to the parameters and guidelines, the
commission shall direct the Controller to modify the claiming
instructions and the Controller shall modify the claiming
instructions to conform to the parameters and guidelines as directed
by the commission.
SEC. 8. Section 23713 of the Government Code is amended to read:
23713. Two copies of the complete text of a charter proposal or
of any revised, amended, or repealed section ratified by the electors
of a county shall be certified and authenticated by the chairperson
and clerk of the governing body and attested by the county elections
official, setting forth the submission of the charter to the electors
of the county, and its ratification by them. One copy shall be
recorded in the office of the recorder of the county and then shall
be filed in the office of the county elections official.
The county elections official shall file the second copy with the
Secretary of State along with the following:
(a) Certified copies of all publications and notices required of
the county by this chapter or by the laws of this state in connection
with an election to propose or revise a county charter.
(b) Certified copies of any arguments for or against the charter
proposal or revision that were mailed to voters pursuant to Sections
9162 and 13303 of the Elections Code.
(c) A certified abstract of the vote at the election at which the
charter proposal or revision was approved by the voters.
SEC. 8.3. Section 25536 of the Government Code is amended to read:
25536. (a) Nothing in this article shall prevent the board of
supervisors of a county from, and the board of supervisors of any
county is empowered to make contracts, acquiring, leasing, or
subleasing property pursuant to Section 1261 of the Military and
Veterans Code, or, by a four-fifths vote of the board, entering into
leases, or concession or managerial contracts involving leasing or
subleasing all or any part of county-owned, leased, or managed
property devoted to or held for ultimate use for airport, vehicle
parking, fairground, beach, park, amusement, recreation, or employee
cafeteria purposes, or industrial or commercial development
incidental thereto or not inconsistent therewith without compliance
with this article.
(b) In addition to the powers provided in subdivision (a), the
County of Monterey may enter into a lease, concession, or managerial
contract involving the leasing or subleasing of all or any part of a
county-owned, leased, or managed property devoted to or held for
ultimate use for juvenile placement.
(c) In addition to the powers provided in subdivisions (a) and
(b), the board of supervisors of a county, by a four-fifths vote of
the board, may sell or lease all or any part of county-owned property
without compliance with this article if the county repurchases or
leases back the property as part of the same transaction. By a
four-fifths vote of the board of supervisors, the county may pledge
specified revenues as security for the payment of obligations
incurred in the repurchase or leaseback of the property.
(d) In addition to the powers provided in subdivision (a), the
Board of Supervisors of the County of San Bernardino, by a
four-fifths vote of the board may directly enter into a lease,
involving all or any part of county-owned, leased, or managed
property devoted for agricultural purposes.
SEC. 8.5. Section 34460 of the Government Code is amended to read:
34460. Three copies of the complete text of a charter proposal or
of any amended or repealed section ratified by the voters of a city
or city and county shall be certified and authenticated by the
chairperson and the clerk of the governing body and attested by the
city clerk, setting forth the submission of the charter to the voters
of the city, and its ratification by them. One copy shall be filed
with the recorder of the county in which the city is located, and one
in the archives of the city. In the case of a city and county, one
copy shall be filed with the recorder thereof, and one in the
archives of the city and county. The third copy shall be filed with
the Secretary of State. Each copy filed with the recorder of the
county or city and county and in the archives of the city or city and
county shall be filed with the following:
(a) Certified copies of all publications and notices required of
the city by this chapter or by the laws of this state in connection
with the calling of an election to propose, amend, or repeal a city
charter.
(b) Certified copies of any arguments for or against the charter
proposal, amendment, or repeal which were mailed to voters pursuant
to Sections 9281 and 13303 of the Elections Code.
(c) A certified abstract of the vote at the election at which the
charter proposal, amendment, or repeal was approved by the voters.
SEC. 9. Section 53601 of the Government Code is amended to read:
53601. The legislative body of a local agency having money in a
sinking fund of, or surplus money in, its treasury not required for
the immediate needs of the local agency may invest any portion of the
money that it deems wise or expedient in those investments set forth
below. A local agency purchasing or obtaining any securities
prescribed in this section, in a negotiable, bearer, registered, or
nonregistered format, shall require delivery of the securities to the
local agency, including those purchased for the agency by financial
advisers, consultants, or managers using the agency's funds, by book
entry, physical delivery, or by third-party custodial agreement. The
transfer of securities to the counterparty bank's customer book
entry account may be used for book entry delivery. For purposes of
this section, "counterparty" means the other party to the
transaction. A counterparty bank's trust department or separate
safekeeping department may be used for the physical delivery of the
security if the security is held in the name of the local agency.
Where this section specifies a percentage limitation for a particular
category of investment, that percentage is applicable only at the
date of purchase. Where this section does not specify a limitation
on the term or remaining maturity at the time of the investment, no
investment shall be made in any security, other than a security
underlying a repurchase or reverse repurchase agreement authorized by
this section, that at the time of the investment has a term
remaining to maturity in excess of five years, unless the legislative
body has granted express authority to make that investment either
specifically or as a part of an investment program approved by the
legislative body no less than three months prior to the investment:
(a) Bonds issued by the local agency, including bonds payable
solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency or by a department,
board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by the
state or by a department, board, agency, or authority of the state.
(d) Bonds, notes, warrants, or other evidences of indebtedness of
any local agency within this state, including bonds payable solely
out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency, or by a department,
board, agency, or authority of the local agency.
(e) Obligations issued by banks for cooperatives, federal land
banks, federal intermediate credit banks, federal home loan banks,
the Federal Home Loan Bank Board, the Tennessee Valley Authority, or
in obligations, participations, or other instruments of, or issued
by, or fully guaranteed as to principal and interest by, the Federal
National Mortgage Association; or in guaranteed portions of Small
Business Administration notes; or in obligations, participations, or
other instruments of, or issued by, a federal agency or a United
States government-sponsored enterprise.
(f) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances. Purchases
of bankers acceptances may not exceed 270 days maturity or 40 percent
of the agency's surplus money that may be invested pursuant to this
section. However, no more than 30 percent of the agency's surplus
funds may be invested in the bankers acceptances of any one
commercial bank pursuant to this section.
This subdivision does not preclude a municipal utility district
from investing any surplus money in its treasury in any manner
authorized by the Municipal Utility District Act (Division 6
(commencing with Section 11501) of the Public Utilities Code).
(g) Commercial paper of "prime" quality of the highest ranking or
of the highest letter and numerical rating as provided for by Moody's
Investors Service, Inc., or Standard and Poor's Corporation.
Eligible paper is further limited to issuing corporations that are
organized and operating within the United States and having total
assets in excess of five hundred million dollars ($500,000,000) and
having an "A" or higher rating for the issuer's debt, other than
commercial paper, if any, as provided for by Moody's Investors
Service, Inc., or Standard and Poor's Corporation. Purchases of
eligible commercial paper may not exceed 180 days maturity nor
represent more than 10 percent of the outstanding paper of an issuing
corporation. Purchases of commercial paper may not exceed 15
percent of the agency's surplus money that may be invested pursuant
to this section. An additional 15 percent, or a total of 30 percent
of the agency's surplus money, may be invested pursuant to this
subdivision. The additional 15 percent may be so invested only if
the dollar-weighted average maturity of the entire amount does not
exceed 31 days. "Dollar-weighted average maturity" means the sum of
the amount of each outstanding commercial paper investment multiplied
by the number of days to maturity, divided by the total amount of
outstanding commercial paper.
(h) Negotiable certificates of deposits issued by a nationally or
state-chartered bank or a state or federal association (as defined by
Section 5102 of the Financial Code) or by a state-licensed branch of
a foreign bank. Purchases of negotiable certificates of deposit may
not exceed 30 percent of the agency's surplus money which may be
invested pursuant to this section. For purposes of this section,
negotiable certificates of deposits do not come within Article 2
(commencing with Section 53630), except that the amount so invested
shall be subject to the limitations of Section 53638.
(i) (1) Investments in repurchase agreements or reverse repurchase
agreements of any securities authorized by this section, as long as
the agreements are subject to this subdivision, including, the
delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on any
investment authorized in this section, when the term of the agreement
does not exceed one year. The market value of securities that
underlay a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities and the value
shall be adjusted no less than quarterly. Since the market value of
the underlying securities is subject to daily market fluctuations,
the investments in repurchase agreements shall be in compliance if
the value of the underlying securities is brought back up to 102
percent no later than the next business day.
(3) Reverse repurchase agreements may be utilized only when either
of the following conditions are met:
(A) The security was owned or specifically committed to purchase,
by the local agency, prior to December 31, 1994, and was sold using a
reverse repurchase agreement on December 31, 1994.
(B) The security to be sold on reverse repurchase agreement has
been owned and fully paid for by the local agency for a minimum of 30
days prior to sale; the total of all reverse repurchase agreements
on investments owned by the local agency not purchased or committed
to purchase, prior to December 31, 1994, does not exceed 20 percent
of the base value of the portfolio; and the agreement does not exceed
a term of 92 days, unless the agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement
and the final maturity date of the same security.
(4) After December 31, 1994, a reverse repurchase agreement may
not be entered into with securities not sold on a reverse repurchase
agreement and purchased, or committed to purchase, prior to that
date, as a means of financing or paying for the security sold on a
reverse repurchase agreement, but may only be entered into with
securities owned and previously paid for a minimum of 30 days prior
to the settlement of the reverse repurchase agreement, in order to
supplement the yield on securities owned and previously paid for or
to provide funds for the immediate payment of a local agency
obligation. Funds obtained or funds within the pool of an equivalent
amount to that obtained from selling a security to a counterparty by
way of a reverse repurchase agreement, on securities originally
purchased subsequent to December 31, 1994, shall not be used to
purchase another security with a maturity longer than 92 days from
the initial settlement date of the reverse repurchase agreement,
unless the reverse repurchase agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement
and the final maturity date of the same security. Reverse repurchase
agreements specified in subparagraph (B) of paragraph (3) may not be
entered into unless the percentage restrictions specified in that
subparagraph are met, including the total of any reverse repurchase
agreements specified in subparagraph (A) of paragraph (3).
(5) Investments in reverse repurchase agreements or similar
investments in which the local agency sells securities prior to
purchase with a simultaneous agreement to repurchase the security,
may only be made upon prior approval of the governing body of the
local agency and shall only be made with
primary dealers of the Federal Reserve Bank of
New York.
(6) (A) "Repurchase agreement" means a purchase of securities by
the local agency pursuant to an agreement by which the counterparty
seller will repurchase the securities on or before a specified date
and for a specified amount and the counterparty will deliver the
underlying securities to the local agency by book entry, physical
delivery, or by third-party custodial agreement. The transfer of
underlying securities to the counterparty bank's customer book-entry
account may be used for book-entry delivery.
(B) "Securities," for purpose of repurchase under this
subdivision, means securities of the same issuer, description, issue
date, and maturity.
(C) "Reverse repurchase agreement" means a sale of securities by
the local agency pursuant to an agreement by which the local agency
will repurchase the securities on or before a specified date and
includes other comparable agreements.
(D) For purposes of this section, the base value of the local
agency's pool portfolio shall be that dollar amount obtained by
totaling all cash balances placed in the pool by all pool
participants, excluding any amounts obtained through selling
securities by way of reverse repurchase agreements or other similar
borrowing methods.
(E) For purposes of this section, the spread is the difference
between the cost of funds obtained using the reverse repurchase
agreement and the earnings obtained on the reinvestment of the funds.
(j) Medium-term notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of five
years or less, issued by corporations organized and operating within
the United States or by depository institutions licensed by the
United States or any state and operating within the United States.
Notes eligible for investment under this subdivision shall be rated
"A" or better by a nationally recognized rating service. Purchases
of medium-term notes shall not include other instruments authorized
by this section and may not exceed 30 percent of the agency's surplus
money which may be invested pursuant to this section.
(k) (1) Shares of beneficial interest issued by diversified
management companies that invest in the securities and obligations as
authorized by subdivisions (a) to (j), inclusive, or subdivisions
(m) or (n) and that comply with the investment restrictions of this
article and Article 2 (commencing with Section 53630). However,
notwithstanding these restrictions, a counterparty to a reverse
repurchase agreement is not required to be a primary dealer of the
Federal Reserve Bank of New York if the company's board of directors
finds that the counterparty presents a minimal risk of default, and
the value of the securities underlying a repurchase agreement may be
100 percent of the sales price if the securities are marked to market
daily.
(2) Shares of beneficial interest issued by diversified management
companies that are money market funds registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 (15
U.S.C. Sec. 80a-1, et seq.).
(3) If investment is in shares issued pursuant to paragraph (1),
the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two nationally recognized
statistical rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience investing in the securities and
obligations authorized by subdivisions (a) to (j), inclusive, or
subdivisions (m) or (n) and with assets under management in excess of
five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2),
the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two nationally recognized
statistical rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience managing money market mutual funds
with assets under management in excess of five hundred million
dollars ($500,000,000).
(5) The purchase price of shares of beneficial interest purchased
pursuant to this subdivision shall not include any commission that
the companies may charge and shall not exceed 20 percent of the
agency's surplus money that may be invested pursuant to this section.
However, no more than 10 percent of the agency's surplus funds may
be invested in shares of beneficial interest of any one mutual fund
pursuant to paragraph (1).
(l) Notwithstanding anything to the contrary contained in this
section, Section 53635, or any other provision of law, moneys held by
a trustee or fiscal agent and pledged to the payment or security of
bonds or other indebtedness, or obligations under a lease,
installment sale, or other agreement of a local agency, or
certificates of participation in those bonds, indebtedness, or lease
installment sale, or other agreements, may be invested in accordance
with the statutory provisions governing the issuance of those bonds,
indebtedness, or lease installment sale, or other agreement, or to
the extent not inconsistent therewith or if there are no specific
statutory provisions, in accordance with the ordinance, resolution,
indenture, or agreement of the local agency providing for the
issuance.
(m) Notes, bonds, or other obligations that are at all times
secured by a valid first priority security interest in securities of
the types listed by Section 53651 as eligible securities for the
purpose of securing local agency deposits having a market value at
least equal to that required by Section 53652 for the purpose of
securing local agency deposits. The securities serving as collateral
shall be placed by delivery or book entry into the custody of a
trust company or the trust department of a bank which is not
affiliated with the issuer of the secured obligation, and the
security interest shall be perfected in accordance with the
requirements of the Uniform Commercial Code or federal regulations
applicable to the types of securities in which the security interest
is granted.
(n) Any mortgage passthrough security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment
lease-backed certificate, consumer receivable passthrough
certificate, or consumer receivable-backed bond of a maximum of five
years maturity. Securities eligible for investment under this
subdivision shall be issued by an issuer having an "A" or higher
rating for the issuer's debt as provided by a nationally recognized
rating service and rated in a rating category of "AA" or its
equivalent or better by a nationally recognized rating service.
Purchase of securities authorized by this subdivision may not exceed
20 percent of the agency's surplus money that may be invested
pursuant to this section.
SEC. 10. Section 53635 of the Government Code is amended to read:
53635. As far as possible, all money belonging to, or in the
custody of, a local agency, including money paid to the treasurer or
other official to pay the principal, interest, or penalties of bonds,
shall be deposited for safekeeping in state or national banks,
savings associations or federal associations, credit unions, or
federally insured industrial loan companies in this state selected by
the treasurer or other official having the legal custody of the
money; or, unless otherwise directed by the legislative body pursuant
to Section 53601, may be invested in the investments set forth
below. A local agency purchasing or obtaining any securities
described in this section, in a negotiable, bearer, registered, or
nonregistered format, shall require delivery of all the securities to
the local agency, including those purchased for the agency by
financial advisers, consultants, or managers using the agency's
funds, by book entry, physical delivery, or by third-party custodial
agreement. The transfer of securities to the counterparty bank's
customer book-entry account may be used for book-entry delivery. For
purposes of this section, "counterparty" means the other party to
the transaction. A counterparty bank's trust department or separate
safekeeping department may be used for the physical delivery of the
security if the security is held in the name of the local agency.
Where this section specifies a percentage limitation for a particular
category of investment, that percentage is applicable only at the
date of purchase.
(a) Bonds issued by the local agency, including bonds payable
solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency or by a department,
board, agency, or authority of the local agency.
(b) United States Treasury notes, bonds, bills, or certificates of
indebtedness, or those for which the faith and credit of the United
States are pledged for the payment of principal and interest.
(c) Registered state warrants or treasury notes or bonds of this
state, including bonds payable solely out of the revenues from a
revenue-producing property owned, controlled, or operated by the
state or by a department, board, agency, or authority of the state.
(d) Bonds, notes, warrants, or other evidences of indebtedness of
any local agency within this state, including bonds payable solely
out of the revenues from a revenue-producing property owned,
controlled, or operated by the local agency, or by a department,
board, agency, or authority of the local agency.
(e) Obligations issued by banks for cooperatives, federal land
banks, federal intermediate credit banks, federal home loan banks,
the Federal Home Loan Bank, the Tennessee Valley Authority, or in
obligations, participations, or other instruments of, or issued by,
or fully guaranteed as to principal and interest by, the Federal
National Mortgage Association; or in guaranteed portions of Small
Business Administration notes; or in obligations, participations, or
other instruments of, or issued by, a federal agency or a United
States government-sponsored enterprise.
(f) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances. Purchases
of bankers acceptances may not exceed 270 days maturity or 40 percent
of the agency's surplus funds which may be invested pursuant to this
section. However, no more than 30 percent of the agency's surplus
funds may be invested in the bankers acceptances of any one
commercial bank pursuant to this section.
This subdivision does not preclude a municipal utility district
from investing any surplus money in its treasury in any manner
authorized by the Municipal Utility District Act, Division 6
(commencing with Section 11501) of the Public Utilities Code.
(g) Commercial paper of "prime" quality of the highest ranking or
of the highest letter and numerical rating as provided for by Moody's
Investors Service, Inc., or Standard and Poor's Corporation.
Eligible paper is further limited to issuing corporations that are
organized and operating within the United States and having total
assets in excess of five hundred million dollars ($500,000,000) and
having an "A" or higher rating for the issuer's debt, other than
commercial paper, if any, as provided for by Moody's Investors
Service, Inc., or Standard and Poor's Corporation. Purchases of
eligible commercial paper may not exceed 180 days maturity nor
represent more than 10 percent of the outstanding paper of an issuing
corporation. Purchases of commercial paper may not exceed 15
percent of the agency's surplus money which may be invested pursuant
to this section. An additional 15 percent, or a total of 30 percent
of the agency's money or money in its custody, may be invested
pursuant to this subdivision. The additional 15 percent may be so
invested only if the dollar-weighted average maturity of the entire
amount does not exceed 31 days. "Dollar-weighted average maturity"
means the sum of the amount of each outstanding commercial paper
investment multiplied by the number of days to maturity, divided by
the total amount of outstanding commercial paper.
(h) Negotiable certificates of deposit issued by a nationally or
state-chartered bank or a savings association or federal association
or a state or federal credit union or by a state-licensed branch of a
foreign bank. Purchases of negotiable certificates of deposit may
not exceed 30 percent of the agency's surplus money which may be
invested pursuant to this section. For purposes of this section,
negotiable certificates of deposit do not come within Article 2
(commencing with Section 53630) of Chapter 4 of Part 1 of Division 2
of Title 5, except that the amount so invested shall be subject to
the limitations of Section 53638. For purposes of this section, the
legislative body of a local agency and the treasurer or other
official of the local agency having legal custody of the money are
prohibited from depositing or investing local agency funds, or funds
in the custody of the local agency, in negotiable certificates of
deposit issued by a state or federal credit union if a member of the
legislative body of the local agency, or an employee of the
administrative officer, manager's office, budget office,
auditor-controller's office, or treasurer's office of the local
agency also serves on the board of directors, or any committee
appointed by the board of directors, or the credit committee or
supervisory committee of the state or federal credit union issuing
the negotiable certificates of deposit.
(i) (1) Investments in repurchase agreements or reverse repurchase
agreements of any securities authorized by this section, so long as
the agreements are subject to this subdivision, including the
delivery requirements specified in this section.
(2) Investments in repurchase agreements may be made, on any
investment authorized in this section, when the term of the agreement
does not exceed one year. The market value of securities that
underlay a repurchase agreement shall be valued at 102 percent or
greater of the funds borrowed against those securities and the value
shall be adjusted no less than quarterly. Since the market value of
the underlying securities is subject to daily market fluctuations,
the investments in repurchase agreements shall be in compliance if
the value of the underlying securities is brought back up to 102
percent no later than the next business day.
(3) Reverse repurchase agreements may be utilized only when either
of the following conditions are met:
(A) The security was owned or specifically committed to purchase,
by the local agency, prior to repurchase agreement on December 31,
1994, and was sold using a reverse repurchase agreement on December
31, 1994.
(B) The security to be sold on reverse repurchase agreement has
been owned and fully paid for by the local agency for a minimum of 30
days prior to sale, the total of all reverse repurchase agreements
on investments owned by the local agency not purchased or committed
to purchase, prior to December 31, 1994, does not exceed 20 percent
of the base value of the portfolio, and the agreement does not exceed
a term of 92 days, unless the agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement
and the final maturity date of the same security.
(4) After December 31, 1994, a reverse repurchase agreement may
not be entered into with securities not sold on a reverse repurchase
agreement and purchased, or committed to purchase, prior to that
date, as a means of financing or paying for the security sold on a
reverse repurchase agreement, but may only be entered into with
securities owned and previously paid for, for a minimum of 30 days
prior to the settlement of the reverse repurchase agreement, in order
to supplement the yield on securities owned and previously paid for
or to provide funds for the immediate payment of a local agency
obligation. Funds obtained or funds within the pool of an equivalent
amount to that obtained from selling a security to a counterparty by
way of a reverse repurchase agreement, on securities originally
purchased subsequent to December 31, 1994, shall not be used to
purchase another security with a maturity longer than 92 days from
the initial settlement date of the reverse repurchase agreement,
unless the reverse repurchase agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement
and the final maturity date of the same security. Reverse repurchase
agreements specified in subparagraph (B) of paragraph (3) may not be
entered into unless the percentage restrictions specified in that
subparagraph are met, including the total of any reverse repurchase
agreements specified in subparagraph (A) of paragraph (3).
(5) Investments in reverse repurchase agreements or similar
investments in which the local agency sells securities prior to
purchase with a simultaneous agreement to repurchase the security,
may only be made upon prior approval of the governing body of the
local agency and shall only be made with primary dealers of the
Federal Reserve Bank of New York.
(6) (A) "Repurchase agreement" means a purchase of securities by
the local agency pursuant to an agreement by which the counterparty
seller will repurchase the securities on or before a specified date
and for a specified amount and the counterparty will deliver the
underlying securities to the local agency by book entry, physical
delivery, or by third-party custodial agreement. The transfer of
underlying securities to the counterparty bank's customer book-entry
account may be used for book-entry delivery.
(B) "Securities," for purpose of repurchase under this
subdivision, means securities of the same issuer, description, issue
date, and maturity.
(C) "Reverse repurchase agreement" means a sale of securities by
the local agency pursuant to an agreement by which the local agency
will repurchase the securities on or before a specified date, and
includes other comparable agreements.
(D) For purposes of this section, the base value of the local
agency's pool portfolio shall be that dollar amount obtained by
totaling all cash balances placed in the pool by all pool
participants, excluding any amounts obtained through selling
securities by way of reverse repurchase agreements or other similar
borrowing methods.
(E) For purposes of this section, the spread is the difference
between the cost of funds obtained using the reverse repurchase
agreement and the earnings obtained on the reinvestment of the funds.
(j) Medium-term notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of five
years or less, issued by corporations organized and operating within
the United States or by depository institutions licensed by the
United States or any state and operating within the United States.
Notes eligible for investment under this subdivision shall be rated"A"
or better by a nationally recognized rating service. Purchases of
medium-term notes shall not include other instruments authorized by
this section and may not exceed 30 percent of the agency's surplus
money which may be invested pursuant to this section.
(k) (1) Shares of beneficial interest issued by diversified
management companies that invest in the securities and obligations as
authorized by subdivisions (a) to (j), inclusive, or subdivision (l)
or (m) and that comply with the investment restrictions of this
article and Article 1 (commencing with Section 53600). However,
notwithstanding these restrictions, a counterparty to a reverse
repurchase agreement is not required to be a primary dealer of the
Federal Reserve Bank of New York if the company's board of directors
finds that the counterparty presents a minimal risk of default, and
the value of the securities underlying a repurchase agreement may be
100 percent of the sales price if the securities are marked to market
daily.
(2) Shares of beneficial interest issued by diversified management
companies that are money market funds registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 (15
U.S.C. Sec. 80a-1 et seq.).
(3) If investment is in shares issued pursuant to paragraph (1),
the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two nationally recognized
statistical rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience investing in the securities and
obligations authorized by subdivisions (a) to (j), inclusive, or
subdivision (l) or (m) and with assets under management in excess of
five hundred million dollars ($500,000,000).
(4) If investment is in shares issued pursuant to paragraph (2),
the company shall have met either of the following criteria:
(A) Attained the highest ranking or the highest letter and
numerical rating provided by not less than two nationally recognized
statistical rating organizations.
(B) Retained an investment adviser registered or exempt from
registration with the Securities and Exchange Commission with not
less than five years' experience managing money market mutual funds
with assets under management in excess of five hundred million
dollars ($500,000,000).
(5) The purchase price of shares of beneficial interest purchased
pursuant to this subdivision shall not include any commission that
the companies may charge and shall not exceed 20 percent of the
agency's surplus money that may be invested pursuant to this section.
However, no more than 10 percent of the agency's surplus funds may
be invested in shares of beneficial interest of any one mutual fund
pursuant to paragraph (1).
(l) Notes, bonds, or other obligations which are at all times
secured by a valid first priority security interest in securities of
the types listed by Section 53651 as eligible securities for the
purpose of securing local agency deposits having a market value at
least equal to that required by Section 53652 for the purpose of
securing local agency deposits. The securities serving as collateral
shall be placed by delivery or book entry into the custody of a
trust company or the trust department of a bank which is not
affiliated with the issuer of the secured obligation, and the
security interest shall be perfected in accordance with the
requirements of the Uniform Commercial Code or federal regulations
applicable to the types of securities in which the security interest
is granted.
(m) Any mortgage passthrough security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment
lease-backed certificate, consumer receivable passthrough
certificate, or consumer receivable-backed bond of a maximum of five
years maturity. Securities eligible for investment under this
subdivision shall be issued by an issuer having an "A" or higher
rating for the issuer's debt as provided by a nationally recognized
rating service and rated in a rating category of "AA" or its
equivalent or better by a nationally recognized rating service.
Purchase of securities authorized by this subdivision may not exceed
20 percent of the agency's surplus money that may be invested
pursuant to this section.
SEC. 10.5. Section 17959.3 of the Health and Safety Code is
amended to read:
17959.3. (a) It is the intent of the Legislature to encourage the
use of passive solar energy design. The Legislature recognizes that
building code regulations with regard to natural light and
ventilation standards have to be modified to permit existing
buildings to be retrofitted with passive solar energy.
(b) Notwithstanding Section 17922, any city or county may by
ordinance or regulation permit windows required for light and
ventilation of habitable rooms in dwellings to open into areas
provided with natural light and ventilation which are designed and
built to act as passive solar energy collectors.
(c) On or before September 1, 1999, the department shall, after
consulting with the State Energy Resources Conservation and
Development Commission, prepare, adopt, and submit building standards
to implement the provisions of this section for approval as part of
the California Building Standards Code pursuant to Chapter 4
(commencing with Section 18935) of Part 2.5.
SEC. 11. Section 42302 of the Health and Safety Code is amended to
read:
42302. An applicant for a permit that has been denied may
request, within 30 days after receipt of the notice of the denial,
the hearing board of the district to hold a hearing on whether the
permit was properly denied.
SEC. 12. Section 42302.1 of the Health and Safety Code is amended
to read:
42302.1. Within 30 days of any decision or action pertaining to
the issuance of a permit by a district, or within 30 days after
mailing of the notice of issuance of the permit to any person who has
requested notice, or within 30 days of the publication and mailing
of notice provided for in Section 1 of Chapter 1131 of the Statutes
of 1993, any aggrieved person who, in person or through a
representative, appeared, submitted written testimony, or otherwise
participated in the action before the district may request the
hearing board of the district to hold a public hearing to determine
whether the permit was properly issued. Except as provided in
Section 1 of Chapter 1131 of the Statutes of 1993, within 30 days of
the request, the hearing board shall hold a public hearing and shall
render a decision on whether the permit was properly issued.
SEC. 13. Section 97.2 of the Revenue and Taxation Code is amended
to read:
97.2. Notwithstanding any other provision of this chapter, the
computations and allocations made by each county pursuant to Section
96.1 or its predecessor section shall be modified for the 1992-93
fiscal year pursuant to subdivisions (a) to (d), inclusive, and for
the 1997-98 and 1998-99 fiscal years pursuant to subdivision (e), as
follows:
(a) (1) Except as provided in paragraph (2), the amount of
property tax revenue deemed allocated in the prior fiscal year to
each county shall be reduced by the dollar amounts indicated as
follows, multiplied
by 0.953649:
Property
Tax Reduction
per County
Alameda ....................... $ 27,323,576
Alpine ........................ 5,169
Amador ........................ 286,131
Butte ......................... 846,452
Calaveras ..................... 507,526
Colusa ........................ 186,438
Contra Costa .................. 12,504,318
Del Norte ..................... 46,523
El Dorado ..................... 1,544,590
Fresno ........................ 5,387,570
Glenn ......................... 378,055
Humboldt ...................... 1,084,968
Imperial ...................... 998,222
Inyo .......................... 366,402
Kern .......................... 6,907,282
Kings ......................... 1,303,774
Lake .......................... 998,222
Lassen ........................ 93,045
Los Angeles ................... 244,178,806
Madera ........................ 809,194
Marin ......................... 3,902,258
Mariposa ...................... 40,136
Mendocino ..................... 1,004,112
Merced ........................ 2,445,709
Modoc ......................... 134,650
Mono .......................... 319,793
Monterey ...................... 2,519,507
Napa .......................... 1,362,036
Nevada ........................ 762,585
Orange ........................ 9,900,654
Placer ........................ 1,991,265
Plumas ........................ 71,076
Riverside ..................... 7,575,353
Sacramento .................... 15,323,634
San Benito .................... 198,090
San Bernardino ................ 14,467,099
San Diego ..................... 17,687,776
San Francisco ................. 53,266,991
San Joaquin ................... 8,574,869
San Luis Obispo ............... 2,547,990
San Mateo ..................... 7,979,302
Santa Barbara ................. 4,411,812
Santa Clara ................... 20,103,706
Santa Cruz .................... 1,416,413
Shasta ........................ 1,096,468
Sierra ........................ 97,103
Siskiyou ...................... 467,390
Solano ........................ 5,378,048
Sonoma ........................ 5,455,911
Stanislaus .................... 2,242,129
Sutter ........................ 831,204
Tehama ........................ 450,559
Trinity ....................... 50,399
Tulare ........................ 4,228,525
Tuolumne ...................... 740,574
Ventura ....................... 9,412,547
Yolo .......................... 1,860,499
Yuba .......................... 842,857
(2) Notwithstanding paragraph (1), the amount of the reduction
specified in that paragraph for any county or city and county that
has been materially and substantially impacted as a result of a
federally declared disaster, as evidenced by at least 20 percent of
the cities, or cities and unincorporated areas of the county
representing 20 percent of the population within the county suffering
substantial damage, as certified by the Director of the Office of
Emergency Services, occurring between October 1, 1989, and the
effective date of this section, shall be reduced by that portion of
five million dollars ($5,000,000) determined for that county or city
and county pursuant to subparagraph (B) of paragraph (3).
(3) On or before October 1, 1992, the Director of Finance shall do
all of the following:
(A) Determine the population of each county and city and county in
which a federally declared disaster has occurred between October 1,
1989, and the effective date of this section.
(B) Determine for each county and city and county as described in
subparagraph (A) its share of five million dollars ($5,000,000) on
the basis of that county's population relative to the total
population of all counties described in subparagraph (A).
(C) Notify each auditor of each county and city and county of the
amounts determined pursuant to subparagraph (B).
(b) (1) Except as provided in paragraph (2), the amount of
property tax revenue deemed allocated in the prior fiscal year to
each city, except for a newly incorporated city that did not receive
property tax revenues in the 1991-92 fiscal year, shall be reduced by
9 percent. In making the above computation with respect to cities
in Alameda County, the computation for a city described in paragraph
(6) of subdivision (a) of Section 100.7, as added by Section 73.5 of
Chapter 323 of the Statutes of 1983, shall be adjusted so that the
amount multiplied by 9 percent is reduced by the amount determined
for that city for "museums" pursuant to paragraph (2) of subdivision
(h) of Section 95.
(2) Notwithstanding paragraph (1), the amount of the reduction
determined pursuant to that paragraph for any city that has been
materially and substantially impacted as a result of a federally
declared disaster, as certified by the Director of the Office of
Emergency Services, occurring between October 1, 1989, and the
effective date of this section, shall be reduced by that portion of
fifteen million dollars ($15,000,000) determined for that city
pursuant to subparagraph (B) of paragraph (3).
(3) On or before October 1, 1992, the Director of Finance shall do
all of the following:
(A) Determine the population of each city in which a federally
declared disaster has occurred between October 1, 1989, and the
effective date of this section.
(B) Determine for each city as described in subparagraph (A) its
share of fifteen million dollars ($15,000,000) on the basis of that
city's population relative to the total population of all cities
described in subparagraph (A).
(C) Notify each auditor of each county and city and county of the
amounts determined pursuant to subparagraph (B).
(4) In the 1992-93 fiscal year and each fiscal year thereafter,
the auditor shall adjust the computations required pursuant to
Article 4 (commencing with Section 98) so that those computations do
not result in the restoration of any reduction required pursuant to
this section.
(c) (1) Subject to paragraph (2), the amount of property tax
revenue, other than those revenues that are pledged to debt service,
deemed allocated in the prior fiscal year to a special district,
other than a multicounty district, a local hospital district, or a
district governed by a city council or whose governing board has the
same membership as a city council, shall be reduced by 35 percent.
For purposes of this subdivision, "revenues that are pledged to debt
service" include only those amounts required to pay debt service
costs in the 1991-92 fiscal year on debt instruments issued by a
special district for the acquisition of capital assets.
(2) No reduction pursuant to paragraph (1) for any special
district, other than a countywide water agency that does not sell
water at retail, shall exceed an amount equal to 10 percent of that
district's total annual revenues, from whatever source, as shown in
the 1989-90 edition of the State Controller's Report on Financial
Transactions Concerning Special Districts (not including any annual
revenues from fiscal years following the 1989-90 fiscal year). With
respect to any special district, as defined pursuant to subdivision
(m) of Section 95, that is allocated property tax revenue pursuant to
this chapter but does not appear in the State Controller's Report on
Financial Transactions Concerning Special Districts, the auditor
shall determine the total annual revenues for that special district
from the information in the 1989-90 edition of the State Controller's
Report on Financial Transactions Concerning Counties. With respect
to a special district that did not exist in the 1989-90 fiscal year,
the auditor may use information from the first full fiscal year, as
appropriate, to determine the total annual revenues for that special
district. No reduction pursuant to paragraph (1) for any countywide
water agency that does not sell water at retail shall exceed an
amount equal to 10 percent of that portion of that agency's general
fund derived from property tax revenues.
(3) The auditor in each county shall, on or before January 15,
1993, and on or before January 30 of each year thereafter, submit
information to the Controller concerning the amount of the property
tax revenue reduction to each special district within that county as
a result of paragraphs (1) and (2). The Controller shall certify that
the calculation of the property tax revenue reduction to each
special district within that county is accurate and correct, and
submit this information to the Director of Finance.
(A) The Director of Finance shall determine whether the total of
the amounts of the property tax revenue reductions to special
districts, as certified by the Controller, is equal to the amount
that would be required to be allocated to school districts and
community college districts as a result of a three hundred
seventy-five million dollar ($375,000,000) shift of property tax
revenues from special districts for the 1992-93 fiscal year. If, for
any year, the total of the amount of the property tax revenue
reductions to special districts is less than the amount as described
in the preceding sentence, the amount of property tax revenue, other
than those revenues that are pledged to debt service, deemed
allocated in the prior fiscal year to a special district, other than
a multicounty district, a local hospital district, or a district
governed by a city council or whose governing board has the same
membership as a city council, shall, subject to subparagraph (B), be
reduced by an amount up to 5 percent of the amount subject to
reduction for that district pursuant to paragraphs (1) and (2).
(B) No reduction pursuant to subparagraph (A), in conjunction with
a reduction pursuant to paragraphs (1) and (2), for any special
district, other than a countywide water agency that does not sell
water at retail, shall exceed an amount equal to 10 percent of that
district's total annual revenues, from whatever source, as shown in
the most recent State Controller's Report on Financial Transactions
Concerning Special Districts. No reduction pursuant to subparagraph
(A), in conjunction with a reduction pursuant to paragraphs (1) and
(2), for any countywide water agency that does not sell water at
retail shall exceed an amount equal to 10 percent of that portion of
that agency's general fund derived from property tax revenues.
(C) In no event shall the amount of the property tax revenue loss
to a special district derived pursuant to subparagraphs (A) and (B)
exceed 40 percent of that district's property tax revenues or 10
percent of that district's total revenues, from whatever source.
(4) For the purpose of determining the total annual revenues of a
special district that provides fire protection or fire suppression
services, all of the following shall be excluded from the
determination of total annual revenues:
(A) If the district had less than two million dollars ($2,000,000)
in total annual revenues in the 1991-92 fiscal year, the revenue
generated by a fire suppression assessment levied pursuant to Article
3.6 (commencing with Section 50078) of Chapter 1 of Part 1 of
Division 1 of Title 5 of the Government Code.
(B) In counties that contract with the state to protect state
responsibility areas, the total amount of all funds, regardless of
the source, that are appropriated to a district, including a fire
department, by a board of supervisors pursuant to Section 25642 of
the Government Code or Chapter 7 (commencing with Section 13890) of
Part 2.7 of Division 12 of the Health and Safety Code for fire
protection. In all other counties, any appropriation for fire
protection received by a special district pursuant to Section 25642
of the Government Code. The amendment of this subparagraph by
Chapter 290 of the Statute of 1997 shall not be construed to affect
any exclusion from the total annual revenues of a special district
that was authorized by this subparagraph as it read prior to that
amendment.
(C) The revenue received by a district as a result of contracts
entered into pursuant to Section 4133 of the Public Resources Code.
(5) For the purpose of determining the total annual revenues of a
resource conservation district, all of the following shall be
excluded from the determination of total annual revenues:
(A) Any revenues received by that district from the state for
financing the acquisition of land, or the construction or improvement
of state projects, and for which that district serves as the fiscal
agent in administering those state funds pursuant to an agreement
entered into between that district and a state agency.
(B) Any amount received by that district as a private gift or
donation.
(C) Any amount received as a county grant or contract as
supplemental to, or independent of, that district's property tax
share.
(D) Any amount received by that district as a federal or state
grant.
(d) (1) The amount of property tax revenues not allocated to the
county, cities within the county, and special districts as a result
of the reductions calculated pursuant to subdivisions (a), (b), and
(c) shall instead be deposited in the Educational Revenue
Augmentation Fund to be established in each county. The amount of
revenue in the Educational Revenue Augmentation Fund, derived from
whatever source, shall be allocated pursuant to paragraphs (2) and
(3) to school districts and county offices of education, in total,
and to community college districts, in total, in the same proportion
that property tax revenues were distributed to school districts and
county offices of education, in total, and community college
districts, in total, during the 1991-92 fiscal year.
(2) The auditor shall, based on information provided by the county
superintendent of schools pursuant to this paragraph, allocate the
proportion of the Educational Revenue Augmentation Fund to those
school districts and county offices of education within the county
that are not excess tax school entities, as defined in subdivision
(n) of Section 95. The county superintendent of schools shall
determine the amount to be allocated to each school district and
county office of education in inverse proportion to the amounts of
property tax revenue per average daily attendance in each school
district and county office of education. In no event shall any
additional money be allocated from the fund to a school district or
county office of education upon that school district or county office
of education becoming an excess tax school entity.
(3) The auditor shall, based on information provided by the
Chancellor of the California Community Colleges pursuant to this
paragraph, allocate the proportion of the Educational Revenue
Augmentation Fund to those community college districts within the
county that are not excess tax school entities, as defined in
subdivision (n) of Section 95. The chancellor shall determine the
amount to be allocated to each community college district in inverse
proportion to the amounts of property tax revenue per funded
full-time equivalent student in each community college district. In
no event shall any additional money be allocated from the fund to a
community college district upon that district becoming an excess tax
school entity.
(4) (A) If, after making the allocation required pursuant to
paragraph (2), the auditor determines that there are still additional
funds to be allocated, the auditor shall allocate those excess funds
pursuant to paragraph (3). If, after making the allocation pursuant
to paragraph (3), the auditor determines that there are still
additional funds to be allocated, the auditor shall allocate those
excess funds pursuant to paragraph (2).
(B) (i) For the 1995-96 fiscal year and each fiscal year
thereafter except the 1999-2000 fiscal year, if, after making the
allocations pursuant to paragraphs (2) and (3) and subparagraph (A),
the auditor determines that there are still additional funds to be
allocated, the auditor shall, subject to clauses (ii) and (iii),
allocate those excess funds to the county superintendent of schools.
Funds allocated pursuant to this subparagraph shall be counted as
property tax revenues for special education programs in augmentation
of the amount calculated pursuant to Section 2572 of the Education
Code, to the extent that those property tax revenues offset state aid
for county offices of education and school districts within the
county pursuant to subdivision (c) of Section 56836.08 of the
Education Code.
(ii) For the 1995-96 fiscal year only, this subparagraph shall
have no application to the County of Mono and the amount allocated
pursuant to this subparagraph in the County of Marin shall not exceed
five million dollars ($5,000,000).
(iii) For the 1996-97 fiscal year only, the total amount of funds
allocated by the auditor pursuant to this subparagraph and
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3
shall not exceed that portion of two million five hundred thousand
dollars ($2,500,000) that corresponds to the county's proportionate
share of all moneys allocated pursuant to this subparagraph and
subparagraph (B) of paragraph (4) of subdivision (d) of Section 97.3
for the 1995-96 fiscal year. Upon the request of the auditor, the
Department of Finance shall provide to the auditor all information in
the department's possession that is necessary for the auditor to
comply with this clause.
(iv) For the 1999-2000 fiscal year, if, after making the
allocations pursuant to paragraphs (2) and (3) and subparagraph (A),
the auditor determines that there are still additional funds to be
allocated, the auditor shall allocate the funds to the county,
cities, and special districts in proportion to the amounts of ad
valorem property tax revenue otherwise required to be shifted from
those local agencies to the county's Educational Revenue Augmentation
Fund for the relevant fiscal year. This clause shall be operative
for the 1999-2000 fiscal year only to the extent that moneys are
appropriated for purposes of this clause in the Budget Act of 1999 by
an appropriation that specifically references this clause.
(C) For purposes of allocating the Educational Revenue
Augmentation Fund for the 1996-97 fiscal year, the auditor shall,
after making the allocations for special education programs, if any,
required by subparagraph (B), allocate all remaining funds among the
county, cities, and special districts in proportion to the amounts of
ad valorem property tax revenue otherwise required to be shifted
from those local agencies to the county's Educational Revenue
Augmentation Fund for the relevant fiscal year. For purposes of ad
valorem property tax revenue allocations for the 1997-98 fiscal year
and each fiscal year thereafter, no amount of ad valorem property tax
revenue allocated to the county, a city, or a special district
pursuant to this subparagraph shall be deemed to be an amount of ad
valorem property tax revenue allocated to that local agency in the
prior fiscal year.
(5) For purposes of allocations made pursuant to Section 96.1 or
its predecessor section for the 1993-94 fiscal year, the amounts
allocated from the Educational Revenue Augmentation Fund pursuant to
this subdivision, other than amounts deposited in the Educational
Revenue Augmentation Fund pursuant to Section 33681 of the Health and
Safety Code, shall be deemed property tax revenue allocated to the
Educational Revenue Augmentation Fund in the prior fiscal year.
(e) (1) For the 1997-98 fiscal year:
(A) The amount of property tax revenue deemed allocated in the
prior fiscal year to any city subject to the reduction specified in
paragraph (2) of subdivision (b) shall be reduced by an amount that
is equal to the difference between the amount determined for the city
pursuant to paragraph (1) of subdivision (b) and the amount of the
reduction determined for the city pursuant to paragraph (2) of
subdivision (b).
(B) The amount of property tax revenue deemed allocated in the
prior fiscal year to any county or city and county subject to the
reduction specified in paragraph (2) of subdivision (a) shall be
reduced by an amount that is equal to the difference between the
amount specified for the county or city and county pursuant to
paragraph (1) of subdivision (a) and the amount of the reduction
determined for the county or city and county pursuant to paragraph
(2) of subdivision (a).
(2) The amount of property tax revenues not allocated to a city or
city and county as a result of this subdivision shall be deposited
in the Educational Revenue Augmentation Fund described in
subparagraph (A) of paragraph (1) of subdivision (d).
(3) For purposes of allocations made pursuant to Section 96.1 for
the 1998-99 fiscal year, the amounts allocated from the Educational
Revenue Augmentation Fund pursuant to this subdivision shall be
deemed property tax revenues allocated to the Educational Revenue
Augmentation Fund in the prior fiscal year.
(f) It is the intent of the Legislature in enacting this section
that this section supersede and be operative in place of Section
97.03 of the Revenue and Taxation Code, as added by Senate Bill 617
of the 1991-92 Regular Session.
SEC. 14. Section 7285.5 of the Revenue and Taxation Code is
amended to read:
7285.5. As an alternative to the procedure set forth in Section
7285, the board of supervisors of any county may establish an
authority for specific purposes.
An authority so established may impose a transactions and use tax
at a rate of 0.25 or 0.5 percent for the purpose for which it is
established, if all of the following requirements are met:
(a) The ordinance proposing that tax is approved by a two-thirds
vote of the authority and is subsequently approved by a vote of the
qualified voters of the county voting in an election on the issue in
the amount that is otherwise required by law.
(b) The transactions and use tax conforms to Part 1.6 (commencing
with Section 7251).
(c) The ordinance includes an expenditure plan describing the
specific projects for which the revenues from the tax may be
expended.
SEC. 15. Section 13 of this act, which amends Section 97.2 of the
Revenue and Taxation Code, shall not become operative if Assembly
Bill 417 of the 1999-2000 Regular Session also is enacted, amends
that section, and becomes effective on or before January 1, 2000.