BILL NUMBER: SB 392	CHAPTERED  07/26/99

	CHAPTER   184
	FILED WITH SECRETARY OF STATE   JULY 26, 1999
	APPROVED BY GOVERNOR   JULY 26, 1999
	PASSED THE SENATE   JULY 15, 1999
	PASSED THE ASSEMBLY   JULY 12, 1999
	AMENDED IN ASSEMBLY   JULY 8, 1999
	AMENDED IN ASSEMBLY   JUNE 15, 1999
	AMENDED IN SENATE   APRIL 27, 1999
	AMENDED IN SENATE   APRIL 14, 1999

INTRODUCED BY   Senator Chesbro

                        FEBRUARY 12, 1999

   An act to amend Section 96.6 of the Revenue and Taxation Code,
relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 392, Chesbro.  Property tax revenue allocations:  redevelopment
agency share:  apportionment.
   The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities in order to address the effects
of blight, as defined, in those communities.  Existing law also
authorizes a redevelopment plan adopted pursuant to that law to
provide for an allocation to the relevant redevelopment agency of a
portion of those ad valorem property tax revenues derived with
respect to a redevelopment project.  Existing property tax law also
establishes certain parameters with respect to the subtraction of a
redevelopment agency's share of ad valorem property tax revenues from
those revenues otherwise allocated to other local jurisdictions
within a redevelopment project area.
   This bill would clarify the process by which incremental property
tax revenues to be allocated to a redevelopment agency are withdrawn
from those revenue shares allocated to other local jurisdictions in a
redevelopment project area.  This bill would make legislative
findings and declarations that these provisions are declaratory of
existing law, and would deem to be correct any apportionment of
property tax revenues made for any fiscal year prior to the effective
date of the bill that is inconsistent with the clarifications made
by this  bill.


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


  SECTION 1.  Section 96.6 of the Revenue and Taxation Code is
amended to read:
   96.6.  (a) Notwithstanding any other provision of law, for the
purposes of this chapter, the apportionment of property tax revenues
required by Article 1 (commencing with Section 95) to Article 4
(commencing with Section 98), inclusive, shall not involve the
subtraction of the redevelopment increment, calculated pursuant to
subdivision (b) of Section 33670 of the Health and Safety Code, from
any jurisdiction that is not within the boundaries of a redevelopment
project area.  For each fiscal year, if, in performing the
calculations set forth in subdivision (a) and in subdivision (b) of
Section 33670 of the Health and Safety Code, the auditor determines
that there is redevelopment increment to be allocated to a
redevelopment agency, the auditor shall withdraw that redevelopment
increment determined pursuant to Section 33670 of the Health and
Safety Code from those ad valorem property tax revenue allocations to
be made to each jurisdiction within the boundaries of the relevant
redevelopment project area.  Each of those jurisdiction's share of
that redevelopment increment shall be computed on the basis of the
factors or rates which are developed pursuant to Section 96.5.  In
order to determine each jurisdiction's share of that redevelopment
increment, the factors or rates for all tax rate areas that are part
of a redevelopment project shall be applied to the current assessed
value of the taxable property within the redevelopment project area,
less the assessed valuation on the assessment roll last equalized
prior to the effective date of the ordinance establishing the
redevelopment project.  Nothing in this section shall be construed as
prohibiting a county from making the allocation and payment of funds
as provided for by subdivision (b) of Section 33670 of the Health
and Safety Code prior to the apportionment of property tax revenues
to any jurisdiction.
   (b) The amendment of subdivision (a) made by the act adding this
subdivision does not constitute a change in, but is declaratory of,
existing law.  However, any apportionment of property tax revenues
made prior to the effective date of the act adding this subdivision
that is inconsistent with the provisions of subdivision (a), as
amended by the act adding this subdivision, shall be deemed correct.