BILL ANALYSIS
AB 79
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Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Anna Marie Caballero, Chair
AB 79 (Duvall) - As Amended: March 25, 2009
SUBJECT : Disaster relief.
SUMMARY : Adds the "Freeway Complex Fire" which occurred in the
Counties of Orange, Riverside, and San Bernardino in 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
"Freeway Complex Fire," which occurred in the Counties of
Orange, Riverside and San Bernardino starting on November 15,
2008, to the list of disasters eligible for full state
reimbursement of local agency costs.
2)Requires, by October 30, 2009, the auditors of Orange,
Riverside, and San Bernardino Counties 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 November 2008
fires.
3)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.
4)Allows owners of dwellings that were damaged or destroyed by
the "Freeway Complex Fire" in Orange, Riverside and San
Bernardino Counties to be eligible for the standard
homeowners' property tax exemption.
5)Provides that any taxpayer's excess disaster loss shall be
carried forward to future years for any loss sustained in
Orange, Riverside, and San Bernardino Counties as a result of
the "Freeway Complex Fire."
6)Contains an urgency clause.
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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
$7000, 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 November 15, 2008, Governor Schwarzenegger declared a state
of emergency as a result of the "Freeway Fire" that occurred
in the Counties of Orange and Riverside in November 2008. The
Governor subsequently issued another proclamation on November
17, 2008 to include San Bernardino County in the disaster
emergency declaration for the "Freeway Complex Fire" because
the fire spread from Orange and Riverside Counties into San
Bernardino County. AB 79 ensures that all three counties
subject to the Governor's emergency disaster declarations will
receive the necessary money to help rebuild.
2)AB 79 specifically 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 disaster. Additionally, this bill will allow homeowners
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to carry forward losses resulting from the 2008 fire disasters
into future taxable years and ensure that standard property
tax deductions continue for those displaced from their homes
by the fires.
3)Staff notes that AB 79 is one of three disaster relief bills
pending in the Local Government Committee - the other bills
are AB 15 (Fuentes) 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 "Freeway Complex Fire" 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
CA Special Districts Association
CA State Association of Counties
Counties of Orange and Riverside
Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958
AB 79
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