BILL NUMBER: SB 1398	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator DeSaulnier

                        FEBRUARY 19, 2010

   An act to amend Section 100 of, and to add Section 100.96 to, the
Revenue and Taxation Code, relating to local government finance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1398, as introduced, DeSaulnier. Property tax revenue
allocations: public utilities: qualified property.
   (1) The California Constitution requires the State Board of
Equalization to assess the property, other than franchises, of
companies transmitting or selling gas or electricity. Existing
property tax law provides for the valuation, as a unit, of properties
of a state assessee that are operated as a unit as a primary
function of that assessee, and for the allocation of the assessed
value of the unit among various counties in which the state-assessee'
s unitary property is located. Existing law also provides, pursuant
to specified formulas, for the application in each county of
specified tax rates to unitary assessed value, and for the allocation
among jurisdictions in that county of the resulting revenues.
   This bill would, for the 2011-12 fiscal year and for each fiscal
year thereafter, require that a specified amount of property tax
revenues derived from applying a specified tax rate to qualified
property, as defined, be first allocated to the county in which the
qualified property is located and the K-12 school district or
districts that serve the parcel or parcels on which the qualified
property is located, with the balance allocated to the redevelopment
agency governing the project area in which the qualified property is
located. This bill would require the revenues received by the
redevelopment agency to be included in that redevelopment agency's
tax increment for the year. This bill would also require that a
specified amount of property tax revenues derived from applying
another specified tax rate to the qualified property be first
allocated to local agencies, with the balance allocated pursuant to a
specified formula to taxing jurisdictions, as defined.
   (2)This bill would make legislative findings and declarations as
to the necessity of a special statute.
   (3) By establishing new duties with respect to the annual
allocation of property tax revenues derived from state-assessed
property, this bill would create a state-mandated local program.
   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.
   (4) This bill would change the pro rata shares in which ad valorem
property tax revenues are allocated among local agencies in a
county, within the meaning of paragraph (3) of subdivision (a) of
Section 25.5 of Article XIII of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 100 of the Revenue and Taxation Code is amended
to read:
   100.  Notwithstanding any other provision of law, commencing with
the 1988-89 fiscal year, property tax assessed value attributable to
unitary and operating nonunitary property, as defined in Sections 723
and 723.1, that is assessed by the State Board of Equalization 
,  shall be allocated by county as provided in Section 756, and
the assessed value and revenues attributable to that allocation
shall be allocated within each county as follows:
   (a)  Each county shall establish one countywide tax rate area. The
assessed value of all unitary and operating nonunitary property
shall be assigned to this tax rate area. No other property shall be
assigned to this tax rate area.
   (b)  Property assigned to the tax rate area created by subdivision
(a) shall be taxed at a rate equal to the sum of the following two
rates:
   (1)  A rate determined by dividing the county's total ad valorem
tax levies for the secured roll, including levies made pursuant to
Section 96.8, for the prior year, exclusive of levies for debt
service, by the county's total ad valorem secured roll assessed value
for the prior year.
   (2)  A rate determined as follows:
   (A)  By dividing the county's total ad valorem tax levies for
unitary and operating nonunitary property for the prior year debt
service only by the county's total unitary and operating nonunitary
assessed value for the prior year.
   (B)  Beginning with the 1989-90 fiscal year, adjusting the rate
determined pursuant to subparagraph (A) by the percentage change
between the two preceding fiscal years in the county's ad valorem
debt service levy for the secured roll, not including unitary and
operating nonunitary debt service.
   (c)  The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (1) of subdivision
(b) shall be allocated as follows:
   (1)  For the 1988-89 fiscal year and each fiscal year thereafter,
each taxing jurisdiction shall be allocated an amount of property tax
revenue equal to 102 percent of the amount of the aggregate property
tax revenue it received from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under  Section   Sections
 100.95  and 100.96  and levies for debt service.
   (2)  If the amount of property tax revenue available for
allocation in the current fiscal year is insufficient to make the
allocations required by paragraph (1), the amount of revenue to be
allocated to each taxing jurisdiction shall be prorated based on a
factor determined by dividing the total amount of property tax
revenue available to all taxing jurisdictions from unitary and
operating nonunitary property in the current year, exclusive of
revenue attributable to levies for debt service, by the total amount
of property tax revenue received by all taxing jurisdictions from
unitary and operating nonunitary property in the prior fiscal year,
exclusive of revenue attributable to levies for debt service.
   (3)  If the amount of property tax revenue available for
allocation to all taxing jurisdictions in the current fiscal year
from unitary and operating nonunitary property, exclusive of revenue
attributable to qualified property under  Section 
 Sections  100.95  and 100.96  and levies for debt
service, exceeds 102 percent of the property tax revenue received by
all taxing jurisdictions from all unitary and operating nonunitary
property in the prior fiscal year, exclusive of revenue attributable
to qualified property under  Section   Sections
 100.95  and 100.96  and levies for debt service, the
amount of revenue in excess of 102 percent shall be allocated to all
taxing jurisdictions in the county by a ratio determined by dividing
each taxing jurisdiction's share of the county's total ad valorem tax
levies for the secured roll for the prior year, exclusive of levies
for qualified property under  Section   Sections
 100.95  and 100.96  and levies for debt service, by
the county's total ad valorem tax levies for the secured roll for the
prior year, exclusive of levies for qualified property under
 Section   Sections  100.95  and 100.96
 and levies for debt service.
   (d)  The property tax revenue derived from the assessed value
assigned to the countywide tax rate area pursuant to subdivision (a)
and pursuant to paragraph (2) of subdivision (a) of Section 100.1 by
the use of the tax rate determined in paragraph (2) of subdivision
(b) shall be allocated as follows:
   (1)  An amount shall be computed for each taxing jurisdiction and
shall be determined by multiplying the amounts required in the
current year pursuant to subdivisions (a) and (c) of Section 93 by
that percentage that shall be determined by dividing the amount of
property tax revenue the jurisdiction received in the prior year from
unitary property and operating nonunitary property by the total
amount of property tax revenue the jurisdiction received in the prior
year from all property.
   (2)  The amount of property tax revenue available for allocation
pursuant to this subdivision shall be allocated among taxing
jurisdictions in the proportion that the amount computed for each
taxing jurisdiction pursuant to paragraph (1) bears to the total
amount computed pursuant to paragraph (1) for all taxing
jurisdictions.
   (3)  If a taxing jurisdiction is levying a tax rate for debt
service for the first time in the current fiscal year, for purposes
of determining the percentage specified in paragraph (1), that
percentage shall be the percentage determined by dividing the amount
of property tax revenue received by that taxing jurisdiction in the
prior year pursuant to subdivision (c) from unitary and operating
nonunitary property by the total amount of property tax revenue
received by that taxing jurisdiction in the prior year from all
property within the taxing jurisdiction.
   (e)  For purposes of this section:
   (1)  "The county's total ad valorem tax levies for the secured
roll" means all ad valorem tax levies for the county's secured roll,
including the general tax levy, levies for debt service (including
land only and land and improvement rates), and levies for
redevelopment agencies.
   (2)  "The county's total ad valorem secured roll" means the county'
s local roll, after all exemptions except the homeowner's exemption,
and the county's utility roll.
   (3)  "Taxing jurisdiction" includes a redevelopment agency.
   (4)  In a county of the second class, for the 1992-93 fiscal year
and each fiscal year thereafter, "taxing jurisdiction" includes that
fund that has been designated by the auditor as the "Unallocated
Residual Public Utility Tax Fund." All revenues allocated to that
fund pursuant to this section shall be deposited in that fund and
shall be distributed as follows:
   (A)  For the 1992-93 fiscal year to the 1996-97 fiscal year,
inclusive, at the discretion of the county board of supervisors.
   (B)  For the 1997-98 fiscal year, 100 percent to the Orange County
Fire Authority.
   (C)  For the 1998-99 fiscal year and each fiscal year thereafter,
in accordance with the following schedule:
   (i)  Fifty-seven and forty-seven hundredths percent to the Orange
County Fire Authority.
   (ii)  Forty-one and forty-seven hundredths percent to the Orange
County Library District.
   (iii)  Forty-eight hundredths percent to the Buena Park Library
District.
   (iv)  Fifty-eight hundredths percent to the Placentia Library
District.
   (f)  The assessed value of the unitary and operating nonunitary
property shall be kept separate for each state assessee throughout
the allocation process.
   (g)  Each state assessee shall be issued only one tax bill for all
unitary and operating nonunitary property within the county.
   (h)  This section applies to the unitary property of regulated
railway companies only to the extent described in Section 100.1.
   (i)  This section does not apply to property that on July 1, 1987,
was undeveloped and owned by a utility and located within a city,
county, or city and county that adopts a resolution stating that the
property is subject to a development plan or agreement and that this
section shall not apply to that property, and the city, county, or
city and county transmits a copy of that resolution, including a
legal description of the property, to the State Board of Equalization
and the county's auditor-controller prior to January 1, 1988.
   (j)  (1)  For property that on July 1, 1990, was undeveloped and
owned by a utility and that is located within a city, county, or city
and county that adopts a resolution stating that the property is
subject to a development plan or agreement and that this subdivision
applies to that property, and the city, county, or city and county
transmits a copy of that resolution, including a legal description of
the property, to the county auditor prior to August 1, 1991, the
allocation of property tax revenues derived with respect to that
property pursuant to Sections 96.1, 96.2, 97.31, 98, 98.01, and
98.04, shall be subject to the allocation required by paragraph (2).
   (2)  The county auditor shall annually allocate to a city, county,
or city and county, that has adopted and transmitted a resolution
pursuant to paragraph (1), the amount of property tax revenues
derived with respect to the property described in paragraph (1) that
would be allocated to that city, county, or city and county if that
property were subject to assessment by the county assessor. In order
to provide the allocations required by this paragraph, the county
auditor shall make any necessary pro rata reductions in allocations
to local agencies other than that city, county, or city and county
adopting and transmitting a resolution pursuant to paragraph (1), of
property tax revenues derived with respect to the property described
in paragraph (1).
   (k)  (1)  For property subject to this section that is owned by a
utility that serves no more than two counties and is located within a
city, county, or city and county that adopts a resolution stating
that the property is subject to a development plan or agreement for
new construction and the city, county, or city and county transmits a
copy of that resolution, including a legal description of the
property, to the State Board of Equalization and the county auditor
prior to January 1, 2006, the allocation of property tax revenues
derived with respect to that property pursuant to Sections 96.1,
97.31, 98, 98.01, and 98.04, shall be subject to the requirements of
paragraph (2).
   (2)  If the city, county, or city and county has adopted and
transmitted a resolution pursuant to paragraph (1), the county
auditor shall annually allocate the property tax revenue attributable
to the new construction described in the development plan or
agreement, as if that new construction were subject to assessment by
the county assessor, according to the following formula:
   (A)  An amount of property tax revenue to school entities, as
defined in subdivision (f) of Section 95, equivalent to the same
percentage the school entities received in the prior fiscal year of
the property tax revenues paid by the utility in the county in which
the property described in paragraph (1) is located.
   (B)  An amount of property tax revenue to the county in which the
property is located equivalent to the same percentage the county
received in the prior fiscal year of the property tax revenues paid
by the utility in the county in which the property described in
paragraph (1) is located. The county shall distribute those property
tax revenues to the county general fund, the county library district,
the county flood control district, the county sanitation districts,
and the county service areas.
   (C)  The property tax revenue remaining after the allocations
described in subparagraphs (A) and (B) are made shall be distributed
to the city in which the property described in paragraph (1) is
located.
   (3)  In order to provide the allocations required by paragraph
(2), the county auditor shall make any necessary pro rata reductions
in allocations of property taxes attributable to the property
specified in paragraph (1) to jurisdictions other than those
receiving an allocation under paragraph (2).
   (  l  )  The amendments made to this section by the act
that added this subdivision apply for the 2007-08 fiscal year and for
each fiscal year thereafter.
  SEC. 2.  Section 100.96 is added to the Revenue and Taxation Code,
to read:
   100.96.  (a) Notwithstanding any other law, for the 2011-12 fiscal
year and each fiscal year thereafter, all of the following shall
apply:
   (1) The revenue from the property tax assessed on qualified
property, which is owned by a public utility and assessed by the
State Board of Equalization, shall be allocated in accordance with
subdivision (b) entirely within the county in which the qualified
property is located.
   (2) The tax rate applied to the assessed value of qualified
property shall be the rate calculated pursuant to subdivision (b) of
Section 100.
   (b) The county auditor shall do both of the following with respect
to the property tax revenues derived from applying the tax rate
described in subdivision (b) of Section 100 to the qualified
property:
   (1) Allocate the property tax revenues derived from applying the
tax rate described in paragraph (1) of subdivision (b) of Section 100
as follows:
   (A) First, to the county in which the qualified property is
located and the K-12 school district or districts that serve the
parcel or parcels on which the qualified property is located, the
amount of property tax revenues that would have otherwise been
allocated to that county and K-12 school district or districts had
this section not been enacted.
   (B) Second, to the redevelopment agency governing the project area
in which the qualified property is located, the balance of the
property tax revenues, which shall be included in that redevelopment
agency's tax increment for the year.
   (2) Allocate the property tax revenues derived from applying the
tax rate described in paragraph (2) of subdivision (b) of Section 100
as follows:
   (A) First to, local agencies in those tax rate areas in the county
in which the qualified property is located, an amount equivalent to
the State Board of Equalization's assessed value of the qualified
property for the year multiplied by any override rate adopted by the
local agency for the year.
   (B) Second, the balance to taxing jurisdictions, as defined in
paragraph (4) of subdivision (e) of Section 100, in amounts as
described in and as allocated in accordance with subdivision (d) of
Section 100.
   (3) In order to make the allocations required by this subdivision,
the county auditor shall make any necessary pro rata reductions in
the allocations of property tax revenues attributable to the
qualified property to jurisdictions other than those receiving an
allocation under this subdivision.
   (c) For purposes of this section, all of the following shall
apply:
   (1) "Qualified property" means both of the following:
   (A) All plant and associated equipment, including substation
facilities and fee-owned land and easements, placed in service by a
public utility in the Oakley Redevelopment Project Area on or after
January 1, 2011, and related to the following:
   (i) Electrical substation facilities that meet either of the
following conditions:
   (I) The high-side voltage of the facility's transformer is 50,000
volts or more.
   (II) The substation facilities are operated at 50,000 volts or
more.
   (ii) Electric generation facilities that have a nameplate
generating capacity of 50 megawatts or more.
   (iii) Electric transmission line facilities of 200,000 volts or
more.
   (B) Any additions, modifications, reconductoring, or equivalent
replacements to the plant and associated equipment made after the
plant and associated equipment are placed into service.
   (2) A public utility shall provide to the State Board of
Equalization a description of the qualified property in the form
prescribed by the board so that separate valuation can be determined.
The State Board of Equalization shall transmit to the auditor of
Contra Costa county the information necessary to identify the
qualified property and the corresponding assessed value data
necessary to make the property tax revenue allocations required by
this section.
  SEC. 3.  The Legislature finds and declares that a special law is
necessary, and that a general law cannot be made applicable within
the meaning of Section 16 of Article IV of the California
Constitution, in order to ensure that the Oakley Redevelopment Agency
receives sufficient tax increment funding to repay loans, or moneys
advanced to, or indebtedness incurred by, the redevelopment agency to
finance or refinance redevelopment projects.
  SEC. 4.  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.