BILL NUMBER: SB 275 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Local Government (Senators Rainey
(Chair), Baca, Johannessen, Monteith, Perata, Polanco, and Schiff
FEBRUARY 1, 1999
An act to amend Sections 27063 and 30063 of the Government Code,
and to amend Section 99 of the Revenue and Taxation Code, relating to
local agencies.
LEGISLATIVE COUNSEL'S DIGEST
SB 275, as introduced, Committee on Local Government. Local
Government Omnibus Act of 1999.
(1) Existing law requires the county treasurer to file with the
county board of supervisors a monthly report of funds received and
disbursed.
This bill would authorize a county auditor to file those reports
if the county treasurer and county auditor have a written agreement.
(2) Existing law requires the county auditor and the city
treasurer to file a written report on or before September 1 each year
with the Supplemental Law Enforcement Oversight Committee and the
local governing body detailing and summarizing allocations from the
county's or city's Supplemental Law Enforcement Services Fund, as
applicable for the entire preceding year. Existing law requires
local officials to hold a public hearing in September in each year
that the legislature appropriates money to the fund for the purpose
of considering requests for money from the fund.
This bill instead would require the report to be filed on or
before the date of the public hearing.
(3) Existing law generally requires those agencies affected by a
proposed jurisdictional change to negotiate, in accordance with
specified procedures, an exchange of property tax revenues to reflect
the changes in service area obligations that will result from the
jurisdictional change. The process of negotiation, mediation, and
arbitration concludes no more than 150 days after the initiation of
proceedings for the jurisdictional change before the local agency
formation commission.
This bill instead would require negotiation, mediation, and
arbitration to be concluded no more than 150 days after the auditor
provides specified property tax information to the local agencies.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) This act shall be known and may be cited as the
Local Government Omnibus Act of 1999.
(b) The Legislature finds and declares that Californians desire
their government to be run efficiently and economically, and that
public officials should avoid waste and duplication whenever
possible. The Legislature further finds and declares that it desires
to control its own operating costs by reducing the number of
separate bills. Therefore, it is the intent of the Legislature in
enacting this act to combine several minor, noncontroversial
statutory changes relating to public agencies into a single measure.
SEC. 2. Section 27063 of the Government Code is amended to read:
27063. Not later than the 25th day of each month, the treasurer
, or, if the auditor has a written agreement with the treasurer,
the auditor, shall file with the board of supervisors a
detailed report of all money received and disbursed by him or
her during the preceding report period which shall be no less
frequent than monthly, so that the receipts into the treasury and the
amounts of disbursements for the period will distinctly appear. The
report shall be filed and preserved by the clerk of the board.
SEC. 3. Section 30063 of the Government Code is amended to read:
30063. (a) The Supplemental Law Enforcement Services Fund (SLESF)
in each county or city is to be expended exclusively as required by
this chapter. Moneys in that fund shall not be transferred to, or
intermingled with, the moneys in any other fund in the county or city
treasury, except that moneys may be transferred from the SLESF to
the county's or city's general fund to the extent necessary to
facilitate the appropriation and expenditure of those transferred
moneys in the manner required by this chapter.
(b) Moneys in a SLESF may only be invested in safe and
conservative investments in accordance with those standards of
prudent investment applicable to the investment of trust moneys. The
treasurer of the county and each city shall provide a monthly SLESF
investment report to either the police chief or the county sheriff
and district attorney, as applicable.
(c) On or before September 1, 1998, and each year
thereafter Each year, on or before the date of the
public hearing required pursuant to paragraph (1) of subdivision (c)
of Section 30061 , the county auditor and city treasurer shall
annually detail and summarize allocations from the
county's or city's SLESF, as applicable, in a written, public report
filed with the Supplemental Law Enforcement Oversight Committee
(SLEOC), the county board of supervisors or city council, as
applicable, for the entirety of the immediately preceding fiscal
year, and the county sheriff or police chief, as applicable.
(d) A summary of the annual reports required in subdivision (c)
shall be submitted in a standardized format to be developed by the
Controller, in conjunction with the California District Attorney's
Association, California Police Chief's Association, California State
Sheriff's Association, California Peace Officer's Association,
California County Auditor's Association, and California Municipal
Treasurer's Association, by each SLEOC to the Controller on or before
October 15, 1998, and each year thereafter. Upon request, the
Controller shall make a copy of the summarized reports available to
the Governor and the Legislature.
SEC. 4. Section 99 of the Revenue and Taxation Code is amended to
read:
99. (a) For the purposes of the computations required by this
chapter:
(1) In the case of a jurisdictional change, other than a city
incorporation or a formation of a district as defined in Section
2215, the auditor shall adjust the allocation of property tax revenue
determined pursuant to Section 96 or 96.1, or the annual tax
increment determined pursuant to Section 96.5, for local agencies
whose service area or service responsibility would be altered by the
jurisdictional change, as determined pursuant to subdivision (b) or
(c).
(2) In the case of a city incorporation, the auditor shall assign
the allocation of property tax revenues determined pursuant to
Section 56842 of the Government Code and the adjustments in tax
revenues that may occur pursuant to Section 56845 of the Government
Code to the newly formed city or district and shall make the
adjustment as determined by Section 56842 in the allocation of
property tax revenue determined pursuant to Section 96 or 96.1 for
each local agency whose service area or service responsibilities
would be altered by the incorporation.
(3) In the case of a formation of a district as defined in Section
2215, the auditor shall assign the allocation of property tax
revenues determined pursuant to Section 56842 of the Government Code
to the district and shall make the adjustment as determined by
Section 56842 in the allocation of property tax revenue determined
pursuant to Section 96 or 96.1 for each local agency whose service
area or service responsibilities would be altered by the formation.
(b) Upon the filing of an application or a resolution pursuant to
the Cortese-Knox Local Government Reorganization Act of 1985
(Division 3 (commencing with Section 56000) of Title 5 of the
Government Code), but prior to the issuance of a certificate of
filing, the executive officer shall give notice of the filing to the
assessor and auditor of each county within which the territory
subject to the jurisdictional change is located. This notice shall
specify each local agency whose service area or responsibility will
be altered by the jurisdictional change.
(1) (A) The county assessor shall provide to the county auditor,
within 30 days of the notice of filing, a report which identifies the
assessed valuations for the territory subject to the jurisdictional
change and the tax rate area or areas in which the territory exists.
(B) The auditor shall estimate the amount of property tax revenue
generated within the territory that is the subject of the
jurisdictional change during the current fiscal year.
(2) The auditor shall estimate what proportion of the property tax
revenue determined pursuant to paragraph (1) is attributable to each
local agency pursuant to Section 96.1 and Section 96.5.
(3) Within 45 days of notice of the filing of an application or
resolution, the auditor shall notify the governing body of each local
agency whose service area or service responsibility will be altered
by the amount of, and allocation factors with respect to, property
tax revenue estimated pursuant to paragraph (2) that is subject to a
negotiated exchange.
(4) Upon receipt of the estimates pursuant to paragraph (3) the
local agencies shall commence negotiations to determine the amount of
property tax revenues to be exchanged between and among the local
agencies. This negotiation period shall not exceed 60 days.
The exchange may be limited to an exchange of property tax
revenues from the annual tax increment generated in the area subject
to the jurisdictional change and attributable to the local agencies
whose service area or service responsibilities will be altered by the
proposed jurisdictional change. The final exchange resolution shall
specify how the annual tax increment shall be allocated in future
years.
(5) In the event that a jurisdictional change would affect the
service area or service responsibility of one or more special
districts, the board of supervisors of the county or counties in
which the districts are located shall, on behalf of the district or
districts, negotiate any exchange of property tax revenues.
(6) Notwithstanding any other provision of law, the executive
officer shall not issue a certificate of filing pursuant to Section
56828 of the Government Code until the local agencies included in the
property tax revenue exchange negotiation, within the 60-day
negotiation period, present resolutions adopted by each such county
and city whereby each county and city agrees to accept the exchange
of property tax revenues.
(7) In the event that the commission modifies the proposal or its
resolution of determination, any local agency whose service area or
service responsibility would be altered by the proposed
jurisdictional change may request, and the executive officer shall
grant, 15 days for the affected agencies, pursuant to paragraph (4)
to renegotiate an exchange of property tax revenues. Notwithstanding
the time period specified in paragraph (4), if the resolutions
required pursuant to paragraph (6) are not presented to the executive
officer within the 15-day period, all proceedings of the
jurisdictional change shall automatically be terminated.
(8) In the case of a jurisdictional change that consists of a city'
s qualified annexation of unincorporated territory, an exchange of
property tax revenues between the city and the county shall be
determined in accordance with subdivision (e) if that exchange of
revenues is not otherwise determined pursuant to either of the
following:
(A) Negotiations completed within the applicable period or periods
as prescribed by this subdivision.
(B) A master property tax exchange agreement among those local
agencies, as described in subdivision (d).
For purposes of this paragraph, a qualified annexation of
unincorporated territory means an annexation, as so described, for
which proceedings before the relevant local agency formation
commission are initiated, as provided in Section 56651 of the
Government Code, on or after January 1, 1998, and on or before
January 1, 2005.
(9) No later than the date on which the certificate of completion
of the jurisdictional change is recorded with the county recorder,
the executive officer shall notify the auditor or auditors of the
exchange of property tax revenues and the auditor or auditors shall
make the appropriate adjustments as provided in subdivision (a).
(c) Whenever a jurisdictional change is not required to be
reviewed and approved by a local agency formation commission, the
local agencies whose service area or service responsibilities would
be altered by the proposed change, shall give notice to the State
Board of Equalization and the assessor and auditor of each county
within which the territory subject to the jurisdictional change is
located. This notice shall specify each local agency whose service
area or responsibility will be altered by the jurisdictional change
and request the auditor and assessor to make the determinations
required pursuant to paragraphs (1) and (2) of subdivision (b). Upon
notification by the auditor of the amount of, and allocation factors
with respect to, property tax subject to exchange, the local
agencies, pursuant to the provisions of paragraphs (4), (5), and (6)
of subdivision (b), shall determine the amount of property tax
revenues to be exchanged between and among the local agencies.
Notwithstanding any other provision of law, no such jurisdictional
change shall become effective until each county and city included in
these negotiations agrees, by resolution, to accept the negotiated
exchange of property tax revenues. The exchange may be limited to an
exchange of property tax revenue from the annual tax increment
generated in the area subject to the jurisdictional change and
attributable to the local agencies whose service area or service
responsibilities will be altered by the proposed jurisdictional
change. The final exchange resolution shall specify how the annual
tax increment shall be allocated in future years. Upon the adoption
of the resolutions required pursuant to this section, the adopting
agencies shall notify the auditor who shall make the appropriate
adjustments as provided in subdivision (a). Adjustments in property
tax allocations made as the result of a city or library district
withdrawing from a county free library system pursuant to Section
19116 of the Education Code shall be made pursuant to Section 19116
of the Education Code, and this subdivision shall not apply.
(d) With respect to adjustments in the allocation of property
taxes pursuant to this section, a county and any local agency or
agencies within the county may develop and adopt a master property
tax transfer agreement. The agreement may be revised from time to
time by the parties subject to the agreement.
(e) (1) An exchange of property tax revenues that is required by
paragraph (8) of subdivision (b) to be determined pursuant to this
subdivision shall be determined in accordance with all of the
following:
(A) The city and the county shall mutually select a third-party
consultant to perform a comprehensive, independent fiscal analysis,
funded in equal portions by the city and the county, that specifies
estimates of all tax revenues that will be derived from the annexed
territory and the costs of city and county services with respect to
the annexed territory. The analysis shall be completed within a
period not to exceed 30 days, and shall be based upon the general
plan or adopted plans and policies of the annexing city and the
intended uses for the annexed territory. If, upon the completion of
the analysis period, no exchange of property tax revenues is agreed
upon by the city and the county, subparagraph (B) shall apply.
(B) The city and the county shall mutually select a mediator,
funded in equal portions by those agencies, to perform mediation for
a period of not to exceed 30 days. If, upon the completion of the
mediation period, no exchange of property tax revenues is agreed upon
by the city and the county, subparagraph (C) shall apply.
(C) The city and the county shall mutually select an arbitrator,
funded in equal portions by those agencies, to conduct an advisory
arbitration with the city and the county for a period of not to
exceed 30 days. At the conclusion of this arbitration period, the
city and the county shall each present to the arbitrator its last and
best offer with respect to the exchange of property tax revenues.
The arbitrator shall select one of the offers and recommend that
offer to the governing bodies of the city and the county. If the
governing body of the city or the county rejects the recommended
offer, it shall do so during a public hearing, and shall, at the
conclusion of that hearing, make written findings of fact as to why
the recommended offer was not accepted.
(2) Proceedings under this subdivision shall be concluded no more
than 150 days after the initiation of proceedings before the
commission auditor provides the notification pursuant
to paragraph (3) of subdivision (b) , unless one of the
periods specified in this subdivision is extended by the mutual
agreement of the city and the county. Notwithstanding any other
provision of law, except for those conditions that are necessary to
implement an exchange of property tax revenues determined pursuant to
this subdivision, the local agency formation commission shall not
impose any fiscal conditions upon a city's qualified annexation of
unincorporated territory that is subject to this subdivision.
(f) Except as otherwise provided in subdivision (g), for the
purpose of determining the amount of property tax to be allocated in
the 1979-80 fiscal year and each fiscal year thereafter for those
local agencies that were affected by a jurisdictional change which
was filed with the State Board of Equalization after January 1, 1978,
but on or before January 1, 1979. The local agencies shall
determine by resolution the amount of property tax revenues to be
exchanged between and among the affected agencies and notify the
auditor of the determination.
(g) For the purpose of determining the amount of property tax to
be allocated in the 1979-80 fiscal year and each fiscal year
thereafter, for a city incorporation that was filed pursuant to
Sections 54900 to 54904 after January 1, 1978, but on or before
January 1, 1979, the amount of property tax revenue considered to
have been received by the jurisdiction for the 1978-79 fiscal year
shall be equal to two-thirds of the amount of property tax revenue
projected in the final local agency formation commission staff report
pertaining to the incorporation multiplied by the proportion that
the total amount of property tax revenue received by all
jurisdictions within the county for the 1978-79 fiscal year bears to
the total amount of property tax revenue received by all
jurisdictions within the county for the 1977-78 fiscal year. Except,
however, in the event that the final commission report did not
specify the amount of property tax revenue projected for that
incorporation, the commission shall by October 10, determine pursuant
to Section 54790.3 of the Government Code the amount of property tax
to be transferred to the city.
The provisions of this subdivision shall also apply to the
allocation of property taxes for the 1980-81 fiscal year and each
fiscal year thereafter for incorporations approved by the voters in
June 1979.
(h) For the purpose of the computations made pursuant to this
section, in the case of a district formation that was filed pursuant
to Sections 54900 to 54904, inclusive, of the Government Code after
January 1, 1978, but before January 1, 1979, the amount of property
tax to be allocated to the district for the 1979-80 fiscal year and
each fiscal year thereafter shall be determined pursuant to Section
54790.3 of the Government Code.
(i) For the purposes of the computations required by this chapter,
in the case of a jurisdictional change, other than a change
requiring an adjustment by the auditor pursuant to subdivision (a),
the auditor shall adjust the allocation of property tax revenue
determined pursuant to Section 96 or 96.1 or its predecessor section,
or the annual tax increment determined pursuant to Section 96.5 or
its predecessor section, for each local school district, community
college district, or county superintendent of schools whose service
area or service responsibility would be altered by the jurisdictional
change, as determined as follows:
(1) The governing body of each district, county superintendent of
schools, or county whose service areas or service responsibilities
would be altered by the change shall determine the amount of property
tax revenues to be exchanged between and among the affected
jurisdictions. This determination shall be adopted by each affected
jurisdiction by resolution. For the purpose of negotiation, the
county auditor shall furnish the parties and the county board of
education with an estimate of the property tax revenue subject to
negotiation.
(2) In the event that the affected jurisdictions are unable to
agree, within 60 days after the effective date of the jurisdictional
change, and if all the jurisdictions are wholly within one county,
the county board of education shall, by resolution, determine the
amount of property tax revenue to be exchanged. If the jurisdictions
are in more than one county, the State Board of Education shall, by
resolution, within 60 days after the effective date of the
jurisdictional change, determine the amount of property tax to be
exchanged.
(3) Upon adoption of any resolution pursuant to this subdivision,
the adopting jurisdictions or State Board of Education shall notify
the county auditor who shall make the appropriate adjustments as
provided in subdivision (a).
(j) For purposes of subdivision (i), the annexation by a community
college district of territory within a county not previously served
by a community college district is an alteration of service area.
The community college district and the county shall negotiate the
amount, if any, of property tax revenues to be exchanged. In these
negotiations, there shall be taken into consideration the amount of
revenue received from the timber yield tax and forest reserve
receipts by the community college district in the area not previously
served. In no event shall the property tax revenue to be exchanged
exceed the amount of property tax revenue collected prior to the
annexation for the purposes of paying tuition expenses of residents
enrolled in the community college district, adjusted each year by the
percentage change in population and the percentage change in the
cost of living, or per capita personal income, whichever is lower,
less the amount of revenue received by the community college district
in the annexed area from the timber yield tax and forest reserve
receipts.
(k) At any time after a jurisdictional change is effective, any of
the local agencies party to the agreement to exchange property tax
revenue may renegotiate the agreement with respect to the current
fiscal year or subsequent fiscal years, subject to approval by all
local agencies affected by the renegotiation.