BILL NUMBER: AB 494 CHAPTERED 10/10/99 CHAPTER 824 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 8, 1999 PASSED THE SENATE SEPTEMBER 3, 1999 PASSED THE ASSEMBLY JUNE 3, 1999 INTRODUCED BY Assembly Member Davis FEBRUARY 18, 1999 An act to add Section 96.18 to the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 494, Davis. Property tax revenue allocation: County of San Diego: county free library. Existing law requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. This bill would, contingent upon the approval of an authorizing resolution or ordinance by the Board of Supervisors of the County of San Diego, require the Auditor for the County of San Diego, in each of the 1999-2000, 2000-01, and 2001-02 fiscal years, to reduce the total amount of ad valorem property tax deemed allocated in the prior fiscal year to the county by an amount, specified in or determined in accordance with the authorizing resolution or ordinance, and to increase by a commensurate amount the total amount of ad valorem property tax revenue deemed allocated in the prior fiscal year to the county free library. This bill would prohibit the total amount of ad valorem property tax revenue that is reallocated in this manner from exceeding $3,000,000 in any fiscal year and $9,000,000 in total. This bill would also require the Auditor for the County of San Diego, in each of the 1999-2000, 2000-01, and 2001-02 fiscal years, to disregard these reallocations for purposes of allocating the annual tax increment. This bill would make legislative findings and declarations as to the necessity for a special statute. This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 96.18 is added to the Revenue and Taxation Code, to read: 96.18. (a) (1) Notwithstanding any other provision of this chapter, the Auditor for the County of San Diego shall, in allocating ad valorem property tax revenues in accordance with subdivision (a) of Section 96.1 in each of the 1999-2000, 2000-01, and 2001-02 fiscal years, do both of the following: (A) Decrease the total amount of ad valorem property tax revenue otherwise deemed allocated to the County of San Diego in the prior fiscal year by an amount, not to exceed three million dollars ($3,000,000), as specified in an ordinance or resolution as described in subdivision (b). (B) Increase the total amount of ad valorem property tax revenue otherwise deemed allocated to the county free library in the prior fiscal year by an amount equal to the amount of the decrease required by subparagraph (A). (2) Notwithstanding any other provision of this chapter, in each of the 1999-2000, 2000-01, and 2001-02 fiscal years only, the auditor shall allocate the "annual tax increment" pursuant to Section 96.5 in those amounts that would be so allocated if no reduction or increase had been required in any fiscal year pursuant to paragraph (1). In the 2002-03 fiscal year and each fiscal year thereafter, the auditor shall allocate the "annual tax increment" pursuant to Section 96.5 in those amounts that fully reflect any increase or decrease required in any fiscal year by paragraph (1). (b) Subdivision (a) shall not become operative unless the Board of Supervisors for the County of San Diego adopts, with the approval of a majority of its entire membership, an ordinance or resolution declaring that the subdivision is operative. Any ordinance or resolution that is adopted pursuant to the preceding sentence shall do both of the following: (1) Specify either the amount that is to be reallocated in accordance with paragraph (1) of subdivision (a) in each fiscal year described in that subdivision, or a procedure for determining that reallocation amount for each of those same fiscal years. (2) Prohibit the total of the amounts reallocated in accordance with paragraph (1) of subdivision (a) from exceeding nine million dollars ($9,000,000). SEC. 2. The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely severe fiscal difficulties being faced by the county free library in the County of San Diego in adequately funding a minimum level of library services. SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to provide the elected officials of the County of San Diego a timely opportunity to provide for that basic level of funding for the county free library system that will encourage literacy and education and reduce crime within the County of San Diego, it is necessary that this act take effect immediately.