BILL NUMBER: AB 1248	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Hueso

                        FEBRUARY 18, 2011

    An act to amend Sections 12206, 17058, and 23610.5 of the
Revenue and Taxation Code, relating to taxation.   An
act to add Section 7500.5 to the Government Code, relating to local
public employees' retirement. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1248, as amended, Hueso.  Insurance, income, and
corporation taxes: credit: low-income housing.   Local
public employees' retirement.  
   Existing law authorizes the creation of retirement systems for
public employees by counties, cities, and districts. The California
Constitutional authorizes charter cities to establish pension plans
under their respective independent constitutional authority. 

   This bill would prohibit a local public employer, as defined, that
provides a defined benefit plan to its employees from eliminating
that plan unless its employees are covered by the federal Social
Security system.  
   The bill would also express a legislative finding and declaration
that federal social security coverage of local employees is an issue
of statewide concern and not a municipal affair, and that therefore,
all cities, including charter cities, would be subject to the
provisions of the bill.  
   Existing laws governing the taxation of insurers, the Personal
Income Tax Law, and the Corporation Tax Law, allow a credit against
the taxes imposed by these laws for providing low-income housing, as
specified, and require the California Tax Credit Allocation Committee
to allocate the credit in accordance with specified criteria.
Existing property tax law, in accordance with the California
Constitution, provides for a "welfare exemption" for property that is
used exclusively for religious, hospital, scientific, or charitable
purposes if certain conditions are met.  
   This bill would specify, for purpose of allocating the credit for
low-income housing, that, when 2 or more projects have an equal
rating, the committee shall give preference to a project that is
eligible for, but does not claim, the "welfare exemption" for
property tax. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 7500.5 is added to the 
 Government Code   , to read:  
   7500.5.  (a) For the purposes of this section, the following
definitions shall apply:
   (1) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the federal Social Security Act (42
U.S.C. Sec. 301 et seq.).
   (2) "Local public employer" means a city, county, and city and
county, including a charter city, charter county, and charter city
and county.
   (b) A local public employer that provides a defined benefit plan
to its employees shall not eliminate that plan unless its employees
are covered by the federal system. 
   SEC. 2.    The Legislature finds and declares that to
protect the general welfare of the residents of this state, federal
social security coverage of local employees is an issue of statewide
concern and not a municipal affair, as that term is used in Section 5
of Article XI of the California Constitution. Therefore, this act
shall apply to all cities, including charter cities. All matter
omitted in this version of the bill appears in the bill as amended in
the Assembly, March 31, 2011. (JR11)