BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 1053
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 1053 (Cooley)
        As Amended  May 1, 2014
        2/3 vote.  Urgency
         
         ----------------------------------------------------------------- 
        |ASSEMBLY:  |     |(May 16, 2013)  |SENATE: |37-0 |(May 5, 2014)  |
         ----------------------------------------------------------------- 
             (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |8-0  |(May 15, 2014)      |RECOMMENDATION: |concur    |
        |(L. Gov.)        |     |                    |                |          |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 
        Original Committee Reference:    INS.  

         SUMMARY  :  Allows the Sacramento Metropolitan Fire District  
        (District) to return money improperly collected from some district  
        taxpayers from 2005 through 2012. 

         The Senate amendments  delete the Assembly version of this bill, and  
        instead:  

        1)Allow the District to return to a payor any money the District  
          improperly collected from the payor due to a clerical error in  
          the District's administration of the Special Fire Tax for the  
          Rancho Murieta and Sloughhouse area levied from 2005 to 2012,  
          inclusive.

        2)Provide that the bill shall remain in effect only until January  
          1, 2015, and as of that date is repealed, unless a later enacted  
          statute, that is enacted before January 1, 2015, deletes or  
          extends that date.

        3)Make a number of findings and declarations related to the  
          improperly collected money from the public due to a clerical  
          error.

        4)Find and declare that a special law is necessary and that a  
          general law cannot be made applicable because of the unique and  
          limited need of the District to return money it improperly and  
          unintentionally collected in the form of a special tax.









                                                                AB 1053
                                                                Page  2

        5)Contain an urgency clause.

         FISCAL EFFECT  :  None

         COMMENTS  :   

        1)Background and existing law.  Proposition 218 (1996) established  
          that a tax levied by a special-purpose district is a special tax  
          requiring two-thirds voter approval.  State law allows a  
          district's legislative body to levy a special tax with two-thirds  
          voter approval [AB 2345 (Chappie), Chapter 672, Statutes of  
          1980].  

        The District is a special district organized pursuant to the Fire  
          Protection District Law of 1987 (SB 515 (Bergeson), Chapter 1013,  
          Statutes of 1987).  The District serves a population of over  
          640,000 in a 417 square mile service area within Sacramento  
          County, including the cities of Citrus Heights and Rancho Cordova  
          and several unincorporated communities.  The District was formed  
          when the Sacramento County Fire Protection District and the  
          American River Fire Protection District merged on December 1,  
          2000.

        More than two-thirds of the voters in the Sloughhouse and Rancho  
          Murieta areas within the American River Fire Protection District  
          approved Measure Q on the November 7, 2000, general election  
          ballot.  That ballot measure authorized the District to raise  
          revenues for fire suppression and emergency ambulance services by  
          levying an annual parcel tax at a rate not to exceed $100 per  
          parcel.  Last year, the District discovered that it was levying  
          the tax on approximately 3,800 parcels of property that should  
          not have been subject to the tax.  The District erroneously began  
          collecting taxes from these parcels in the 2005-06 fiscal year.

        State law allows a local government to refund money from parcel  
          taxes that appear on the property tax bill if those taxes were  
          erroneously collected, but generally prohibits a local government  
          from refunding erroneously collected parcel taxes in response to  
          a claim that is filed more than four years after the date of the  
          payment that is to be refunded.

        2)Purpose of this bill.  This bill allows the District,  
          notwithstanding any other law, to return to a payor any money the  
          District improperly collected from the payor due to a clerical  
          error in the District's administration of the Special Fire Tax  








                                                                AB 1053
                                                                Page  3

          for the Rancho Murieta and Sloughhouse area, levied from 2005 to  
          2012, inclusive.  This bill specifies that its provisions remain  
          in effect only until January 1, 2015, and as of that date are  
          repealed, unless a later enacted statute, that is enacted before  
          January 1, 2015, deletes or extends that date.  This bill  
          contains legislative findings and declarations that specify the  
          ways in which the bill serves a public purpose.  This bill is  
          sponsored by the District.

        3)Author's statement.  According to the author, "In 2013 the  
          District discovered that due to a clerical error, the owners of  
          approximately 3,800 pieces of property located outside the  
          boundary of a local taxation area had been inappropriately  
          charged for fire protection services since 2005, as if they were  
          part of the tax area.  Upon making this discovery, the District  
          implemented a special claims procedure through which affected  
          property owners could apply refunds.  However, consistent with  
          current law, the District has not yet been able to accept or  
          approve any claims for tax refunds where the taxes had been paid  
          more than four years before the date the claim was presented."

        4)Arguments in support.  Supporters argue that this bill allows the  
          District to efficiently and quickly return money to property  
          owners.

        5)Arguments in opposition.  None on file.

        6)Urgency clause.  This bill contains an urgency clause allowing  
          the provisions of the bill to take effect immediately upon  
          enactment, and requires a two-thirds vote on the Assembly Floor.



         Analysis Prepared by  :    Debbie Michel / L. GOV. / (916) 319-3958 


                                                                FN: 0003506