BILL NUMBER: AB 262	CHAPTERED  07/06/99

	CHAPTER   56
	FILED WITH SECRETARY OF STATE   JULY 6, 1999
	APPROVED BY GOVERNOR   JULY 6, 1999
	PASSED THE SENATE   JUNE 24, 1999
	PASSED THE ASSEMBLY   APRIL 29, 1999
	AMENDED IN ASSEMBLY   MARCH 11, 1999

INTRODUCED BY   Assembly Member Runner

                        FEBRUARY 3, 1999

   An act to amend Section 55707 of, and to add Section 55704.5 to,
the Government Code, relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 262, Runner.  Local sales and use taxes:  revenue sharing
contracts.
   The California Constitution authorizes the Legislature to allow
counties, cities and counties, and cities to enter into contracts to
apportion between them those revenues derived from any local sales
and use tax that is collected for them by the state, provided that
any contract for that purpose is approved by a majority of the voters
voting on the issue in each subject jurisdiction.  Existing
statutory law implements this constitutional authority with respect
to contracts for the sharing of revenues derived from local taxes
imposed under the Bradley-Burns Uniform Local Sales and Use Tax Law.
Notwithstanding that constitutional authority, the California
Constitution also authorizes counties, cities and counties, and
cities, with the approval of 2/3 of the governing body of each
affected jurisdiction but without the necessity of approval by the
voters, to enter into contracts to apportion revenues derived from
local taxes imposed under the same law.
   This bill would establish this latter authorization in statutory
form.


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


  SECTION 1.  Section 55704.5 is added to the Government Code, to
read:
   55704.5.  Pursuant to subdivision (b) of Section 29 of Article
XIII of the California Constitution, on or after November 4, 1998,
counties, cities and counties, and cities may enter into contracts to
apportion revenue between them, provided that both of the following
conditions are met:
   (a) Each contract is proposed in an ordinance or resolution of the
governing body of each jurisdiction that is a party to that
contract.
   (b) Each proposing ordinance or resolution described in
subdivision (a) is approved by a two-thirds vote of the governing
body to which it is submitted.
  SEC. 2.  Section 55707 of the Government Code is amended to read:
   55707.  Except as otherwise provided in Section 55704.5, no
contract entered into pursuant to this article shall be operative
until it has been submitted at a general election or at a direct
primary election to the qualified electors of each local agency that
is a party thereto and receives a majority of all votes cast for and
against it at that election in each local agency.