BILL ANALYSIS
AB 1766
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
AB 1766 (Gaines) - As Amended: April 15, 2010
SUBJECT : Disaster assistance: 49 Fire.
SUMMARY : Increases from 75% to 100% the amount of the state
share of eligible state costs related to the 49 Fire in Placer
County in August of 2009, and allows special tax treatment for
losses sustained as a result of that fire. Specifically, this
bill :
1)Adds the fire that began in late August 2009 in Placer County,
known generally as the
49 Fire, to the list of disasters eligible for the state share
to be up to 100% of total state eligible costs.
2)Provides reimbursement for property tax losses resulting from
the reassessment of properties damaged by the 49 Fire in
Placer County.
3)Requires, by October 30, 2010, the auditor of Placer County 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 August
2009 fire.
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)Provides that any dwelling that qualified for a homeowners'
property tax exemption before the August 2009 fire in Placer
County, that was damaged or destroyed by that earthquake, and
that has not changed ownership since the date of the disaster,
shall not be denied a homeowners' exemption solely because
that dwelling was temporarily damaged or destroyed, or was
being reconstructed by the owner, or was temporarily
uninhabited as a result of restricted access.
6)Provides that a taxpayer's excess disaster loss shall be
carried forward to future years for any loss sustained in
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Placer County as a result of the August 2009 fire.
7)States the intent of the Legislature to provide in the annual
Budget Act those additional reimbursements to local
governments for the property tax revenue reductions due to the
August 2009 fire in Placer County.
8)Specifies that if the Commission on State Mandates determines
that this bill contains costs mandated by the state, local
agencies and school districts will be reimbursed for those
costs.
9)Makes findings and declarations that this act fulfills a
statewide public purpose because
of the Governor's declaration of a state of emergency, which
constituted conditions
of extreme peril to public health and safety to persons and
property within Placer County, thus qualifying affected
persons for various forms of governmental assistance and
relief.
10)Contains an urgency clause.
EXISTING LAW :
1)Provides that for any eligible project, the state share shall
amount to no more than 75%
of total state eligible costs [Government Code 8686 (a)].
2)Specifies a list of disasters for which the state share shall
be up to 100% of total state eligible costs [Government Code
8686 (b)].
3)Provides, for any federally-declared disaster subsequent to
January 1, 1995, that the Legislature has designated in
Government Code 8686 (b), that the state shall assume the
increased share in those cases where the Federal Emergency
Management Agency (FEMA) or another applicable federal agency
has approved the federal share of costs.
4)Provides, under the California Disaster Assistance Act, a list
of disasters eligible for full state reimbursement of local
agency costs.
5)Provides for state reimbursement to backfill property tax
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revenue loss resulting from assessment reductions in areas
that the Governor has declared to be in a state of emergency.
6)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.
7)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.
8)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 Hazard Mitigation Plan in accordance
with the federal Disaster Mitigation Act as part of the safety
element.
FISCAL EFFECT : Unknown
COMMENTS :
1)This bill provides for a greater percentage of the state share
of eligible costs related to the fire disaster that occurred
in Placer County in August of 2009, otherwise known as the "49
Fire." Current law provides that for eligible disasters, the
state share of state eligible costs shall be 75 % [Government
Code 8686 (a)]. Under this bill, the state share would
increase from 75% to 100% of total eligible state costs
related to the 49 Fire by adding the 49 Fire to the list of
eligible disasters contained in Government Code 8686 (b).
Following a request from the state of California, FEMA
approved a Fire Management Assistance Grant (FMAG) for the
49 Fire in Placer County. The authorization makes FEMA funding
available to reimburse
75% of the eligible firefighting costs under an approved grant
for managing, mitigating and controlling the fire.
Amendments taken on April 6, 2010, add additional disaster
relief provisions that would reimburse the county for the
losses from the property tax re-assessment for affected homes,
and allow carry-forward tax treatment of disaster loss.
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2)Support Arguments : AB 1766, sponsored by Placer County,
specifically provides that Placer County is 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 to carry forward
losses resulting from the fire into future taxable years and
ensures that standard property tax deductions continue for
those displaced from their homes by the fire.
Opposition Arguments : Historically, those disasters added to
Gov Code 8686 (b) by the Legislature have been those
incidences that have received federal declarations under the
U.S. Stafford Act as presidential major disaster declarations.
Only 13 disasters have been added to this code section over
the last 20 years, including disasters such as the Loma Prieta
earthquake in 1989 and the Northridge earthquake in 1994.
The Committee may wish to consider whether adding the 49 Fire
to this short list of disasters is prudent, given the
increased state costs involved. Also, it is worth noting that
adding the 49 Fire to this section, even though it is not a
federally declared major disaster, will set precedent and may
allow for future disasters in California to receive a higher
percentage of state costs without a presidential major
disaster declaration under the Stafford Act.
3)AB 1766 is similar to AB 1690 (Chesbro) and AB 1662
(Portantino), which are currently pending in the Committee,
and other disaster bills that passed out of the Committee last
year. As these disaster relief bills move forward, each will
need to be amended to avoid chaptering out issues.
4)This bill is double-referred to the Committee on Revenue and
Taxation.
REGISTERED SUPPORT / OPPOSITION :
Support
Placer County Board of Supervisors [SPONSOR]
CA Professional Firefighters
CA Special Districts Association
CA State Association of Counties
Regional Council of Rural Counties
AB 1766
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Opposition
None on file
Analysis Prepared by : Debbie Michel / L. GOV. / (916)
319-3958