BILL ANALYSIS
AB 15
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Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Anna Marie Caballero, Chair
AB 15 (Fuentes) - As Amended: March 25, 2009
SUBJECT : Disaster relief.
SUMMARY : Adds the "Marek," "Sesnon," and "Sayre" Fires which
occurred in the Counties
of Los Angeles and Ventura during October 2008 and November
2008, to the list of disasters eligible for full state
reimbursement of local agency costs, beneficial homeowners'
property tax exemption treatment, and favorable "carry forward"
treatment of excess disaster losses. Specifically, this bill :
1)Amends the California Disaster Assistance Act to add the
"Marek" and "Sesnon" Fires, which occurred in the Counties of
Los Angeles and Ventura starting on October 12, 2008, to the
list of disasters eligible for full state reimbursement of
local agency costs.
2)Amends the California Disaster Assistance Act to add the
"Sayre" Fire, which occurred in the County of Los Angeles
starting on November 14, 2008, to the list of disasters
eligible for full state reimbursement of local agency costs.
3)Requires, by October 30, 2009, the auditors of the Counties of
Los Angeles and Ventura to certify to the Director of Finance
an estimate for the total amount of the reduction in property
tax revenues resulting from the reassessment of properties
impacted by the October and November 2008 fires.
4)Requires the Director of Finance, within 30 days after
verification of the county auditor's property tax estimate, to
certify the amount to the State Controller for allocation to
the county for reimbursement in property tax loss.
5)Allows owners of dwellings that were damaged or destroyed by
the "Marek," "Sesnon," and "Sayre" Fires in the Counties of
Los Angeles and Ventura to be eligible for the standard
homeowners' property tax exemption.
6)Provides that any taxpayer's excess disaster loss shall be
carried forward to future years for losses sustained in the
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Counties of Los Angeles and Ventura as a result of the
"Marek," "Sesnon," or "Sayre" Fires.
7)Contains an urgency clause.
EXISTING LAW:
1)Provides, under the California Disaster Assistance Act, a list
of disasters eligible for full state reimbursement of local
agency costs.
2)Provides for state reimbursement to backfill property tax
revenue loss resulting from assessment reductions in areas
that the Governor has declared to be in a state of emergency.
3)Provides for a standard homeowners' property tax exemption of
$7,000, and allows dwellings damaged in disasters declared by
the Governor to continue eligibility for the exemption.
4)Allows losses sustained because of a Governor-declared
disaster to be carried forward to each of the five taxable
years following the loss, or if the loss remains after the
five years, extends the loss for the next ten years.
5)Requires that the state share of reimbursement for local costs
due to a disaster not exceed 75% of total state eligible costs
unless the local agency is located within a city or county
that has adopted a local HMP in accordance with the federal
DMA as part of the safety element.
FISCAL EFFECT : Unknown
COMMENTS :
1)On October 13, 2008, Governor Schwarzenegger declared a state
of emergency as a result of the Marek and Sesnon Fires that
occurred in the Counties of Los Angeles and Ventura. The
Governor also declared a state of emergency on November 15th,
2008 as a result of the Sayre Fire, which occurred in Los
Angeles County.
2)This bill provides that the affected counties are eligible for
reimbursement due to the loss of property tax resulting from
the lower reassessed property value caused by the disasters.
Additionally, this bill would allow homeowners to carry
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forward losses resulting from the 2008 fire disasters into
future taxable years and ensure that the standard homeowners'
property tax deduction continues for those displaced from
their homes by the fires.
3)Staff notes that AB 15 is one of three disaster relief bills
pending in the Local Government Committee - the other bills
are AB 79 (Duvall) and AB 50 (Nava). As these bills move
forward, each will need to be amended to avoid chaptering out
issues.
4)TECHNICAL AMENDMENT : The Committee may wish to request that
the author take the following technical amendments:
a) Strike Section 1 of the bill. A drafting error added
the Marek, Sesnon and Sayre fires to the incorrect code
section. Only federally declared disasters are eligible to
be listed under Government Code 8686 (b).
5)This bill is an urgency measure and will take effect
immediately upon the Governor's signature.
6)This bill is double-referred to the Committee on Revenue and
Taxation.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO
CA Special Districts Association
CA State Association of Counties
Opposition
AB 15
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None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958