BILL NUMBER: AB 2362 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN ASSEMBLY MAY 18, 2010
AMENDED IN ASSEMBLY APRIL 20, 2010
AMENDED IN ASSEMBLY APRIL 13, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Members Skinner and Blakeslee
FEBRUARY 19, 2010
An act to amend Section 70 of the Revenue and Taxation
Code, relating to taxation to take effect immediately, tax levy.
An act to amend Sections 33020 and 33021 of, and to
add Section 33137 to, the Health and Safety Code, relating to
redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2362, as amended, Skinner. Property tax: new
construction exclusion Redevelopment funds :
soft-story construction. building improvement
assistance.
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 and requires those
agencies to prepare, or cause to be prepared, and approve a
redevelopment plan for each project area. That law authorizes the
agencies to use tax increment financing for redevelopment projects
and repayment of redevelopment debts.
This bill would redefine the term "redevelopment" to include the
provision of loan assistance to qualified homeowners, until January
1, 2016, as determined by the agency. The bill would authorize a
redevelopment agency to use redevelopment funds to issue a loan
limited to qualified homeowners for seismic retrofitting improvements
to a soft-story building, as prescribed, who reside in or within one
mile of the project area. The bill would authorize the use of funds
outside the project area only upon a specified resolution of the
agency and the legislative body. The bill would make this
authorization inoperative on January 1, 2016.
(1) The California Constitution generally limits ad valorem taxes
on real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change of
ownership has occurred.
The California Constitution authorizes the Legislature to exclude
from classification as "newly constructed" the construction or
installation in existing buildings of certain seismic retrofitting
improvements or improvements utilizing earthquake hazard mitigation
technologies.
This bill would exclude from the classification "newly constructed"
seismic retrofitting improvements, as defined, to a soft-story
residential building, as defined.
By changing the manner in which local assessors assess property
for property taxation purposes, this bill would impose a
state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
(3) Section 2229 of the Revenue and Taxation Code requires the
Legislature to reimburse local agencies annually for certain property
tax revenues lost as a result of any exemption or classification of
property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse local agencies for property tax revenues lost by
them pursuant to the bill.
(4) This bill would provide that certain provisions become
inoperative if Senate Constitutional Amendment 4 of the 2008-09
Regular Session is approved by the voters at the June 8, 2010,
statewide general election.
(5) This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33020 of the Health
and Safety Code is amended to read:
33020. "Redevelopment" means the planning, development,
replanning, redesign, clearance, reconstruction, or rehabilitation,
or any combination of these, of all or part of a survey
area, and area; the provision of those
residential, commercial, industrial, public, or other structures or
spaces as may be appropriate or necessary in the interest of the
general welfare, including recreational and other facilities
incidental or appurtenant to them them;
assistance to qualified homeowners under Section 33137
until January 1, 2016; and payments to school and community
college districts in the fiscal years specified in Sections 33681,
33681.5, 33681.7, 33681.9, and 33681.12.
SEC. 2. Section 33021 of the Health and
Safety Code is amended to read:
33021. Redevelopment includes:
(a) The alteration, improvement, modernization, reconstruction,
or rehabilitation, or any combination of these, of existing
structures in a project area.
(b) Provision for open-space types of use, such as streets and
other public grounds and space around buildings, and public or
private buildings, structures and improvements, and improvements of
public or private recreation areas and other public grounds.
(c) The replanning or redesign or original development of
undeveloped areas as to which either of the following conditions
exist.
(1) The areas are stagnant or improperly utilized because of
defective or inadequate street layout, faulty lot layout in relation
to size, shape, accessibility, or usefulness, or for other causes.
(2) The areas require replanning and land assembly for
reclamation or development in the interest of the general welfare
because of widely scattered ownership, tax delinquency, or other
reasons.
(d) Issuance of loans to qualified homeowners for seismic
retrofitting improvements to a soft-story building under Section
33137 until January 1, 2016.
SEC. 3. Section 33137 is added to the
Health and Safety Code , to read:
33137. (a) An agency may use redevelopment funds to issue loans
to qualified homeowners, who reside in or within one mile of the
project area, to make seismic retrofitting improvements to a
soft-story building, as specified in subdivision (c) and determined
by the local agency. The agency may use these funds outside the
project area only upon a resolution of the agency and the legislative
body that the use will be of benefit to the project area.
(b) The funds authorized by this section shall not include the
20-percent set aside funds for the construction of low- and
moderate-income housing required under Section 33334.2.
(c) For purposes of this section, both of the following shall
apply:
(1) "Seismic retrofitting improvements" has the same meaning as
defined in Section 74.5 of the Revenue and Taxation Code.
(2) "Soft-story building" means a wood frame, multiunit
residential building constructed before January 1, 1978, where the
ground floor of the portion of the structure contains parking or
other similar open floor space that causes soft, weak, or open-front
wall lines.
(d) The authorization provided in subdivision (a) shall remain
operative only until January 1, 2016.
SECTION 1. Section 70 of the Revenue and
Taxation Code is amended to read:
70. (a) "Newly constructed" and "new construction" means:
(1) Any addition to real property, whether land or improvements
(including fixtures), since the last lien date; and
(2) Any alteration of land or of any improvement (including
fixtures) since the last lien date that constitutes a major
rehabilitation thereof or that converts the property to a different
use.
(b) Any rehabilitation, renovation, or modernization that converts
an improvement or fixture to the substantial equivalent of a new
improvement or fixture is a major rehabilitation of that improvement
or fixture.
(c) Notwithstanding the provisions of subdivisions (a) and (b),
where real property has been damaged or destroyed by misfortune or
calamity, "newly constructed" and "new construction" do not mean any
timely reconstruction of the real property, or portion thereof, where
the property after reconstruction is substantially equivalent to the
property prior to damage or destruction. Any reconstruction of real
property, or portion thereof, that is not substantially equivalent to
the damaged or destroyed property, shall be deemed to be new
construction and only that portion that exceeds substantially
equivalent reconstruction shall have a new base year value determined
pursuant to Section 110.1.
(d) (1) Notwithstanding the provisions of subdivisions (a) and
(b), where a structure must be improved to comply with local
ordinances on seismic safety, "newly constructed" and "new
construction" do not mean the portion of reconstruction or
improvement to a structure, constructed of unreinforced masonry
bearing wall construction, necessary to comply with the local
ordinance. This exclusion shall remain in effect during the first 15
years following that reconstruction or improvement (unless the
property is purchased or changes ownership during that period, in
which case the provisions of Chapter 2 (commencing with Section 60)
of this division shall apply).
(2) In the 16th year following the reconstruction or improvement
referred to in paragraph (1), the assessor shall place on the roll
the current full cash value of the portion of reconstruction or
improvement to the structure that was excluded pursuant to this
subdivision.
(3) The governing body that enacted the local ordinance shall
issue a certificate of compliance upon the request of the owner who,
pursuant to a notice or permit issued by the governing body that
specified that the reconstruction or improvement is necessary to
comply with a seismic safety ordinance, so reconstructs or improves
his or her structure in accordance with the ordinance. The
certificate of compliance shall be filed by the property owner with
the county assessor not later than six months after the completion of
the project. The failure to file a certificate of completion within
the prescribed filing period shall be deemed a waiver of the
exclusion for that year.
(e) (1) Notwithstanding the provisions of subdivisions (a) and
(b), where a tank must be improved, upgraded, or replaced to comply
with federal, state, and local regulations on underground storage
tanks, "newly constructed" and "new construction" do not mean the
improvement, upgrade, or replacement of a tank to meet compliance
standards, and the improvement, upgrade, or replacement shall be
considered to have been performed for the purpose of normal
maintenance and repair.
(2) Notwithstanding the provisions of subdivisions (a) and (b),
where a structure, or any portion thereof, was reconstructed, as a
consequence of completing work on an underground storage tank to
comply with federal, state, and local regulations on these tanks,
timely reconstruction of the structure shall be considered to have
been performed for the purpose of normal maintenance and repair where
the structure, or portion thereof, after reconstruction is
substantially equivalent to the prior structure in size, utility, and
function.
(f) (1) Notwithstanding the provisions of subdivisions (a) and
(b), "newly constructed" and "new construction" do not include
seismic retrofitting improvements to a soft-story building.
(2) For purposes of this section, both of the following shall
apply:
(A) "Seismic retrofitting improvements" has the same meaning as
defined in Section 74.5.
(B) "Soft-story construction" means a wood frame, multiunit
residential building constructed before January 1, 1978, where the
ground floor portion of the structure contains parking or other
similar open floor space that causes soft, weak, or open-front wall
lines.
SEC. 2. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SEC. 3. Notwithstanding Section 2229 of the
Revenue and Taxation Code, no appropriation is made by this act and
the state shall not reimburse any local agency for any property tax
revenues lost by it pursuant to this act.
SEC. 4. The provisions of Section 1 of this act
shall become inoperative if Senate Constitutional Amendment 4 of the
2008-09 Regular Session is approved by the voters at the June 8,
2010, statewide general election.
SEC. 5. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.