Enrolled  September 01, 2020
Passed  IN  Senate  August 28, 2020
Passed  IN  Assembly  August 30, 2020
Amended  IN  Senate  August 20, 2020
Amended  IN  Assembly  June 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2040

Introduced by Assembly Member Bigelow
(Principal coauthor: Senator Caballero)

February 03, 2020

An act to add Section 96.28 to the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 2040, Bigelow. Property tax: revenue allocations: County of Madera.
Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction shall be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined.
Existing property tax law also reduces the amounts of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax revenue allocations in each county for the 1992–93 and 1993–94 fiscal years, that the amounts of property tax revenue deemed allocated in the prior fiscal year to the county, cities, and special districts be reduced in accordance with certain formulas. Existing property tax law requires that the revenues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund (ERAF) in that county for allocation to school districts, community college districts, and the county office of education.
Existing law provides that if it is determined by an audit that an allocation method is required to be adjusted and a reallocation is required for previous fiscal years, the cumulative reallocation or adjustment may not exceed 1% of the total amount levied at a 1% rate of the current year’s original secured tax roll, and requires the county auditor to correct the allocation method, as specified.
This bill, notwithstanding that reallocation or adjustment limit or any other law, would require the county auditor of the County of Madera to make an allocation adjustment for the 2005–06 through 2013–14 fiscal years in the full amount of $5,856,457 identified in the Controller’s September 2015 audit of the County of Madera for the 2005–06 through 2013–14 fiscal years, less the amount of $1,228,734 previously reallocated in accordance with existing law. The bill would require the resulting reallocation and transfer of $4,627,723 to be made from the county Educational Revenue Augmentation Fund, as specified. By adding to the duties of the auditor of the County of Madera, the bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Madera.
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 the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 96.28 is added to the Revenue and Taxation Code, to read:

96.28.
 (a) Notwithstanding the reallocation or adjustment limits set forth in paragraph (3) of subdivision (c) of Section 96.1, or any other law, the county auditor of the County of Madera shall make an allocation adjustment for the 2005–06 through 2013–14 fiscal years in the full amount of five million eight hundred fifty-six thousand four hundred fifty-seven dollars ($5,856,457) identified in the Controller’s September 2015 audit of the County of Madera for the 2005–06 through 2013–14 fiscal years, less the amount of one million two hundred twenty-eight thousand seven hundred thirty-four dollars ($1,228,734) previously reallocated in accordance with Section 96.1.
(b) The resulting reallocation and transfer of four million six hundred twenty-seven thousand seven hundred twenty-three dollars ($4,627,723) shall be made from the county Educational Revenue Augmentation Fund consistent with both the following:
(1) It is made pursuant to subdivision (c) of Section 96.1, but disregarding the reallocation or adjustment limits set forth in paragraph (3) of subdivision (c) of Section 96.1.
(2) It is completed over a period ofnine fiscal years, commencing with the 2020–21 fiscal year, or completed as otherwise negotiated between the County of Madera and the Controller.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances in the County of Madera related to the need to correct the misallocation of vehicle license fee swap moneys, as identified in the Controller’s audit of that county’s property tax apportionment and allocation system issued on September 9, 2015.

SEC. 3.

 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.