BILL NUMBER: AB 2136 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN ASSEMBLY MAY 13, 2010
AMENDED IN ASSEMBLY MAY 6, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
INTRODUCED BY Assembly Members V. Manuel Perez and Salas
(Principal coauthor: Senator Ducheny)
FEBRUARY 18, 2010
An act to amend Section 8686 of the Government Code, to
amend Section 50650.3 of the Health and Safety Code, and to
amend Sections 218, 17207, and 24347.5 of, and to add Sections
195.170, 195.171, and 195.172 to, the Revenue and Taxation Code,
relating to disaster relief, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 2136, as amended, V. Manuel Perez. Disaster relief: County of
Imperial earthquake.
(1) Under the California Disaster Assistance Act, a local agency
may receive state financial assistance for a repair or restoration
project, as defined, following the proclamation of an emergency.
Existing law provides that the state share of the costs for an
eligible project is generally no more than 75% of the total state
eligible costs, but for specific events, the state share is up to
100% of those costs, subject to the approval of the federal share of
costs by the Federal Emergency Management Agency or another
applicable federal agency.
This bill would add the earthquake that occurred in Imperial
County on April 4, 2010, to the list of events eligible for the
higher state share of costs.
(2) Existing law, the CalHome Program, authorizes funds
appropriated for purposes of the program to be used to enable low-
and very low income households to become or remain homeowners.
Existing law permits CalHome Program financial assistance to be
provided as a secured forgivable loan to an individual household to
rehabilitate, repair, or replace manufactured housing in a mobilehome
park that is not permanently affixed to a foundation. Existing law
requires that these loans be due and payable in 20 years, with 10% of
the original principal to be forgiven annually for each additional
year beyond the 10th year that the home is owned and continuously
occupied by the borrower.
This bill would require that loans provided pursuant to the
CalHome Program Disaster Assistance for Imperial County that have
been made for the purpose of rehabilitation or reconstruction of
lowerincome owner-occupied manufactured homes be due and payable in
10 years, with 20% of the original principal to be forgiven annually
for each additional year beyond the 5th year that the manufactured
home is owned and continuously occupied by the borrower.
(2)
(3) Existing law authorizes a county board of
supervisors to provide by ordinance for the reassessment of property
that is damaged or destroyed, without fault on the part of the
assessee, by a major misfortune or calamity, upon the application of
the assessee or upon the action of the county assessor with the board'
s approval. With respect to certain counties that have adopted
reassessment ordinances and have been declared by the Governor to be
in a state of emergency as a result of certain events, existing law
provides for state allocations of the estimated amounts of the
reductions in property tax revenues resulting in certain fiscal years
from reassessments under those ordinances. Existing law also
continuously appropriates, without regard to fiscal years, moneys in
the Special Fund for Economic Uncertainties for purposes of funding
these state allocations.
This bill would provide for similar state allocations with respect
to property tax revenue reductions resulting from a reassessment for
damages incurred within the County of Imperial, which was declared
by the Governor to be in a state of emergency due to the earthquake
that occurred on April 4, 2010.
By requiring moneys continuously appropriated from the Special
Fund for Economic Uncertainties to be allocated for the new purpose
of reimbursing the County of Imperial for these property tax revenue
reductions, this bill would make an appropriation.
(3)
(4) Existing property tax law provides, pursuant to a
specified provision of the California Constitution, for a homeowners'
property tax exemption in the amount of $7,000 of the full value of
a "dwelling," as defined.
This bill would prohibit any dwelling that qualified for the
exemption prior to April 4, 2010, that was damaged or destroyed by
the earthquake in the County of Imperial, and that has not changed
ownership since April 4, 2010, from being denied the exemption solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner, or was temporarily
uninhabited as a result of restricted access to the property due to
the earthquake.
(4)
(5) The California Constitution requires the
Legislature, in each fiscal year, to reimburse local governments for
the revenue losses incurred by those governments in that fiscal year
as a result of the homeowners' property tax exemption.
This bill would state the intent of the Legislature to make this
required reimbursement in the annual Budget Act. By requiring local
tax officials to implement new exemption criteria, this bill would
impose a state-mandated local program.
(5)
(6) 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.
(6)
(7) The Personal Income Tax Law and the Corporation Tax
Law provide for the carryover to specified taxable years of
specified losses sustained as a result of certain disasters occurring
in California in an area determined by the President of the United
States to warrant specified federal assistance, or proclaimed by the
Governor to be in a state of emergency.
This bill would extend these provisions to losses sustained in the
County of Imperial as a result of the earthquake that occurred in
April 2010. This bill would authorize a taxpayer to make an election
to claim a deduction for those losses on the tax return for the
preceding year.
(7)
(8) This bill would declare that it is to take effect
immediately as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8686 of the Government Code is amended to read:
8686. (a) For any eligible project, the state share shall amount
to no more than 75 percent of total state eligible costs.
(b) Notwithstanding subdivision (a), the state share shall be up
to 100 percent of total state eligible costs connected with the
following events:
(1) The October 17, 1989, Loma Prieta earthquake.
(2) The October 20, 1991, East Bay fire.
(3) The fires that occurred in southern California from October 1,
1993, to November 30, 1993, inclusive.
(4) The January 17, 1994, Northridge earthquake.
(5) Storms that occurred in California during the periods
commencing January 3, 1995, and February 13, 1995, as specified in
agreements between this state and the United States for federal
financial assistance.
(6) The storms that occurred in California in December of 1996 and
early January of 1997, as specified in agreements between this state
and the United States for federal financial assistance.
(7) The winter storms and flooding that occurred from February 1,
1998, to April 30, 1998, inclusive, as specified in agreements
between this state and the United States for federal financial
assistance.
(8) The wildfires that occurred in southern California commencing
October 21, 2003, as specified in agreements between this state and
the United States for federal financial assistance.
(9) The December 22, 2003, San Simeon earthquake, as specified in
agreements between this state and the United States for federal
financial assistance.
(10) The severe storms, flooding, debris flows, and mudslides that
occurred during December 27, 2004, to January 11, 2005, inclusive,
in southern California, as specified in agreements between this state
and the United States for federal financial assistance.
(11) The severe storms, flooding, landslides, and mud and debris
flows that occurred in southern California during the period from
February 16 to February 23, 2005, inclusive, as specified in
agreements between this state and the United States for federal
financial assistance.
(12) The severe storms, flooding, mudslides, and landslides that
occurred in northern California during the period from December 17,
2005, to January 3, 2006, inclusive, as specified in agreements
between this state and the United States for federal financial
assistance.
(13) The severe storms and flooding that occurred in northern and
central California during the period from March 29, 2006, to April
16, 2006, inclusive, as specified in agreements between this state
and the United States for federal financial assistance.
(14) The earthquake that occurred in Imperial County on April 4,
2010.
(c) For any federally declared disaster subsequent to January 1,
1995, that the Legislature has designated in subdivision (b), the
state shall assume the increased share specified in subdivision (b)
in those cases where the Federal Emergency Management Agency or
another applicable federal agency has approved the federal share of
costs.
(d) The state shall make no allocation for any project application
resulting in a state share of less than two thousand five hundred
dollars ($2,500) under this section.
SEC. 2. Section 50650.3 of the Health
and Safety Code is amended to read:
50650.3. (a) Funds appropriated for purposes of this chapter
shall be used to enable low- and very low income households to become
or remain homeowners. Funds shall be provided by the department to
local public agencies or nonprofit corporations as either of the
following:
(1) Grants for programs that assist individual households.
(2) Loans that assist development projects involving multiple home
ownership units, including single-family subdivisions.
(b) (1) Grant funds may be used for first-time homebuyer
downpayment assistance, home rehabilitation, including the
installation or retrofit of ignition resistant exterior components on
existing manufactured homes, mobilehomes, and accessory structures
required pursuant to Article 2.3 (commencing with Section 4200) of
Subchapter 2 of Chapter 3 of Division 1 of Title 25 of the California
Code of Regulations, homebuyer counseling, home acquisition and
rehabilitation, or self-help mortgage assistance programs, or for
technical assistance for self-help and shared housing home ownership.
(2) Home rehabilitation funding for the purpose of installing
ignition resistant components on manufactured homes, mobilehomes, or
accessory structures pursuant to this subdivision shall not be
conditioned upon the rehabilitation of additional or unrelated home
components unless that rehabilitation is required pursuant to Article
2.3 (commencing with Section 4200) of Subchapter 2 of Chapter 3 of
Division 1 of Title 25 of the California Code of Regulations. In
administering funding for this purpose, local public agencies and
nonprofit corporations may consider the condition and age of the
manufactured home or mobilehome, including whether the home was
constructed on or after June 15, 1976, in accordance with federal
standards and whether the available funds could be more effectively
used to replace the manufactured home or mobilehome.
(c) Loan Except as provided in subdivision
(e), loan funds may be used for purchase of real property, site
development, predevelopment, and construction period expenses
incurred on home ownership development projects, and permanent
financing for mutual housing or cooperative developments. Upon
completion of construction, the department may convert project loans
into grants for programs of assistance to individual homeowners.
Financial assistance provided to individual households shall be in
the form of deferred payment loans, repayable upon sale or transfer
of the homes, when they cease to be owner-occupied, or upon the loan
maturity date. Financial assistance may be provided in the form of a
secured forgivable loan to an individual household to rehabilitate,
repair, or replace manufactured housing located in a mobilehome park
and not permanently affixed to a foundation. The loan shall be due
and payable in 20 years, with 10 percent of the original
principle principal to be forgiven annually for
each additional year beyond the 10th year that the home is owned and
continuously occupied by the borrower. Not more than 10 percent of
the funds available for the purposes of this chapter in a fiscal year
shall be used for financial assistance in the form of secured
forgivable loans.
(d) All loan repayments shall be used for activities allowed under
this section, and shall be governed by a reuse plan approved by the
department. Those reuse plans may provide for loan servicing by the
grant recipient or a third-party local government agency or nonprofit
corporation.
(e) Notwithstanding subdivision (c), loans provided pursuant to
the CalHome Program Disaster Assistance for Imperial County that have
been made for the purpose of rehabilitation or reconstruction of
lowerincome owner-occupied manufactured homes shall be due and
payable in 10 years, with 20 percent of the original principal to be
forgiven annually for each additional year beyond the fifth year that
the manufactured home is owned and continuously occupied by the
borrower.
SEC. 2. SEC. 3. Section 195.170 is
added to the Revenue and Taxation Code, to read:
195.170. (a) By October 30, 2010, the auditor of the County of
Imperial, which was the subject of the Governor's proclamation of a
state of emergency for the earthquake that occurred on April 4, 2010,
shall certify to the Director of Finance an estimate of the total
amount of the reduction in property tax revenues on both the regular
secured roll and the supplemental roll for the 2009-10 fiscal year
resulting from the reassessment by the county assessor pursuant to
paragraph (1) of subdivision (a) of Section 170 of those properties
that are eligible properties as a result of that disaster, except
that the amount certified shall not include any estimated property
tax revenue reductions to school districts, other than basic state
aid school districts, and county offices of education.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 3. SEC. 4. Section 195.171 is
added to the Revenue and Taxation Code, to read:
195.171. After the county auditor of the eligible county, as
described in Section 195.170, has made the applicable certification
to the Director of Finance pursuant to that section, the director
shall, within 30 days after verification of the county auditor's
estimate, certify this amount to the Controller for allocation to the
county. Upon receipt of certification from the Director of Finance,
the Controller shall make the appropriate allocation to the county
within 10 working days.
SEC. 4. SEC. 5. Section 195.172 is
added to the Revenue and Taxation Code, to read:
195.172. (a) On or before June 30, 2011, an eligible county, as
described in Section 195.170, shall compute and remit to the
Controller for deposit in the General Fund an amount equal to the
amount allocated to it by the Controller pursuant to Section 195.171,
less the actual amount of its property tax revenue lost on the
regular secured and supplemental rolls with respect to those eligible
properties described in Section 195.170 as a result of the
reassessment of those properties pursuant to paragraph (1) of
subdivision (a) of Section 170, excluding any property tax revenue
lost by school districts, other than basic state aid school
districts, and county offices of education. If the actual amount of
property tax revenue lost by an eligible county in the immediately
preceding fiscal year, as described and limited in the preceding
sentence, exceeds the amount allocated by the Controller to that
county pursuant to Section 195.171, the Controller shall allocate the
amount of that excess to that eligible county.
(b) For purposes of this section, "basic state aid school district"
means any school district that does not receive a state
apportionment pursuant to subdivision (h) of Section 42238 of the
Education Code, but receives from the state only a basic
apportionment pursuant to Section 6 of Article IX of the California
Constitution.
SEC. 5. SEC. 6. Section 218 of the
Revenue and Taxation Code is amended to read:
218. (a) The homeowners' property tax exemption is in the amount
of the assessed value of the dwelling specified in this section, as
authorized by subdivision (k) of Section 3 of Article XIII of the
California Constitution. That exemption shall be in the amount of
seven thousand dollars ($7,000) of the full value of the dwelling.
(b) The exemption does not extend to property that is rented,
vacant, under construction on the lien date, or that is a vacation or
secondary home of the owner or owners, nor does it apply to property
on which an owner receives the veteran's exemption.
(c) For purposes of this section, all of the following apply:
(1) "Owner" includes a person purchasing the dwelling under a
contract of sale or who holds shares or membership in a cooperative
housing corporation, which holding is a requisite to the exclusive
right of occupancy of a dwelling.
(2) (A) "Dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated. A two-dwelling
unit shall be considered as two separate single-family dwellings.
(B) "Dwelling" includes the following:
(i) A single-family dwelling occupied by an owner thereof as his
or her principal place of residence on the lien date.
(ii) A multiple-dwelling unit occupied by an owner thereof on the
lien date as his or her principal place of residence.
(iii) A condominium occupied by an owner thereof as his or her
principal place of residence on the lien date.
(iv) Premises occupied by the owner of shares or a membership
interest in a cooperative housing corporation, as defined in
subdivision (i) of Section 61, as his or her principal place of
residence on the lien date. Each exemption allowed pursuant to this
subdivision shall be deducted from the total assessed valuation of
the cooperative housing corporation. The exemption shall be taken
into account in apportioning property taxes among owners of share or
membership interests in the cooperative housing corporations so as to
benefit those owners who qualify for the exemption.
(d) Any dwelling that qualified for an exemption under this
section prior to October 20, 1991, that was damaged or destroyed by
fire in a disaster, as declared by the Governor, occurring on or
after October 20, 1991, and before November 1, 1991, and that has not
changed ownership since October 20, 1991, shall not be disqualified
as a "dwelling" or be denied an exemption under this section solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner.
(e) Any dwelling that qualified for an exemption under this
section prior to October 15, 2003, that was damaged or destroyed by
fire or earthquake in a disaster, as declared by the Governor, during
October, November, or December 2003, and that has not changed
ownership since October 15, 2003, shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner.
(f) Any dwelling that qualified for an exemption under this
section prior to June 3, 2004, that was damaged or destroyed by flood
in a disaster, as declared by the Governor, during June 2004, and
that has not changed ownership since June 3, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner.
(g) Any dwelling that qualified for an exemption under this
section prior to August 11, 2004, that was damaged or destroyed by
the wildfires and any other related casualty that occurred in Shasta
County in a disaster, as declared by the Governor, during August
2004, and that has not changed ownership since August 11, 2004, shall
not be disqualified as a "dwelling" or be denied an exemption under
this section solely on the basis that the dwelling was temporarily
damaged or destroyed or was being reconstructed by the owner.
(h) Any dwelling that qualified for an exemption under this
section prior to December 28, 2004, that was damaged or destroyed by
severe rainstorms, floods, mudslides, or the accumulation of debris
in a disaster, as declared by the Governor, during December 2004,
January 2005, February 2005, March 2005, or June 2005, and that has
not changed ownership since December 28, 2004, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to floods, mudslides, the accumulation of debris, or
washed-out or damaged roads.
(i) Any dwelling that qualified for an exemption under this
section prior to December 19, 2005, that was damaged or destroyed by
severe rainstorms, floods, mudslides, or the accumulation of debris
in a disaster, as declared by the Governor in January 2006, April
2006, May 2006, or June 2006, and that has not changed ownership
since December 19, 2005, shall not be disqualified as a "dwelling" or
be denied an exemption under this section solely on the basis that
the dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to floods, mudslides,
the accumulation of debris, or washed-out or damaged roads.
(j) Any dwelling that qualified for an exemption under this
section prior to July 9, 2006, that was damaged or destroyed by the
wildfires and any other related casualty that occurred in the County
of San Bernardino, as declared by the Governor in July 2006, and that
has not changed ownership since July 9, 2006, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(k) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's proclamations of 2006 that was damaged or destroyed by
the wildfires and any other related casualty that occurred in the
Counties of Riverside and Ventura, and that has not changed ownership
since the commencement dates of these disasters as listed in the
Governor's proclamations of 2006 shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(l) Any dwelling that qualified for an exemption under this
section prior to January 11, 2007, that was damaged or destroyed by
severe freezing conditions, commencing January 11, 2007, and any
other related casualty that occurred in the Counties of El Dorado,
Fresno, Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside,
San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa
Clara, Stanislaus, Tulare, Ventura, and Yuba as a result of a
disaster as declared by the Governor, and that has not changed
ownership since January 11, 2007, shall not be disqualified as a
"dwelling" or be denied an exemption under this section solely on the
basis that the dwelling was temporarily damaged or destroyed or was
being reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to severe freezing
conditions.
(m) Any dwelling that qualified for an exemption under this
section prior to June 24, 2007, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of El Dorado, as declared by the
Governor in June 2007, and that has not changed ownership since June
24, 2007, shall not be disqualified as a "dwelling" or be denied an
exemption under this section solely on the basis that the dwelling
was temporarily damaged or destroyed or was being reconstructed by
the owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(n) Any dwelling that qualified for an exemption under this
section prior to July 4, 2007, that was damaged or destroyed by the
Zaca Fire and any other related casualty that occurred as a result of
this disaster in the Counties of Santa Barbara and Ventura, as
declared by the Governor in August 2007, and that has not changed
ownership since July 4, 2007, may not be denied an exemption solely
on the basis that the dwelling was temporarily damaged or destroyed
or was being reconstructed by the owner, or was temporarily
uninhabited as a result of restricted access to the property due to
the Zaca Fire.
(o) Any dwelling that qualified for an exemption under this
section prior to July 6, 2007, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Inyo, as declared by the Governor in
July 2007, and that has not changed ownership since July 6, 2007, may
not be denied an exemption solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(p) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of September 15, 2007, and
October 21, 2007, that was damaged or destroyed by the wildfires and
any other related casualty that occurred in the Counties of Los
Angeles, Orange, Riverside, San Bernardino, San Diego, Santa Barbara,
and Ventura, and that has not changed ownership since the
commencement dates of these disasters as listed in the proclamations
shall not be disqualified as a "dwelling" or be denied an exemption
under this section solely on the basis that the dwelling was
temporarily damaged or destroyed or was being reconstructed by the
owner, or was temporarily uninhabited as a result of restricted
access to the property due to the wildfires.
(q) Any dwelling that qualified for an exemption under this
section prior to October 20, 2007, that was damaged or destroyed by
the extremely strong and damaging winds and any other related
casualty that occurred as a result of this disaster in the County of
Riverside, as declared by the Governor in November 2007, and that has
not changed ownership since October 20, 2007, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the extremely strong and damaging winds.
(r) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of May, June, or July 2008,
that was damaged or destroyed by the wildfires and any other related
casualty that occurred in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity and that has not changed ownership since the commencement
dates of these disasters as listed in the proclamations shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(s) Any dwelling that qualified for an exemption under this
section prior to July 1, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Santa Barbara, as declared by the
Governor in July 2008, and that has not changed ownership since July
1, 2008, may not be denied an exemption solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(t) Any dwelling that qualified for an exemption under this
section prior to July 12, 2008, that was damaged or destroyed by
severe rainstorms, floods, landslides, or the accumulation of debris
in a disaster, as declared by the Governor, in July 2008, and that
has not changed ownership since July 12, 2008, shall not be
disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to floods, landslides, the accumulation of debris, or
washed-out or damaged roads.
(u) Any dwelling that qualified for an exemption under this
section prior to May 22, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred as a result of
this disaster in the County of Humboldt, as declared by the Governor
in August 2008, and that has not changed ownership since May 22,
2008, may not be denied an exemption solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(v) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires that were
the subject of the Governor's disaster proclamations of October 13,
2008, and November 15, 2008, that was damaged or destroyed by the
wildfires and any other related casualty that occurred in the
Counties of Los Angeles and Ventura and that has not changed
ownership since the commencement dates of these wildfires, shall not
be disqualified as a "dwelling" or be denied an exemption under this
section solely on the basis that the dwelling was temporarily damaged
or destroyed or was being reconstructed by the owner, or was
temporarily uninhabited as a result of restricted access to the
property due to the wildfires.
(w) Any dwelling that qualified for an exemption under this
section prior to November 13, 2008, that was damaged or destroyed by
the wildfires and any other related casualty that occurred as a
result of this disaster in the County of Santa Barbara, as declared
by the Governor in November 2008, and that has not changed ownership
since November 13, 2008, shall not be disqualified as a "dwelling" or
be denied an exemption under this section solely on the basis that
the dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(x) Any dwelling that qualified for an exemption under this
section prior to the commencement dates of the wildfires listed in
the Governor's disaster proclamations of November 15, 2008, and
November 17, 2008, that was damaged or destroyed by the wildfires and
any other related casualty that occurred as a result of this
disaster in the Counties of Orange, Riverside, and San Bernardino, as
declared by the Governor in November 2008, and that has not changed
ownership since the commencement dates of these disasters as listed
in the proclamations, shall not be disqualified as a "dwelling" or be
denied an exemption under this section solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the wildfires.
(y) Any dwelling that
qualified for an exemption under this section prior to May 5, 2009,
that was damaged or destroyed by the wildfires and any other related
casualty that occurred as a result of this disaster in the County of
Santa Barbara, as declared by the Governor in May 2009, and that has
not changed ownership since May 5, 2009, shall not be disqualified as
a "dwelling" or be denied an exemption under this section solely on
the basis that the dwelling was temporarily damaged or destroyed or
was being reconstructed by the owner, or was temporarily uninhabited
as a result of restricted access to the property due to the
wildfires.
(z) Any dwelling that qualified for an exemption under this
section prior to April 4, 2010, that was damaged or destroyed by the
earthquake and any other related casualty that occurred as a result
of the disaster in the County of Imperial, as declared by the
Governor in April 2010, and that has not changed ownership since
April 4, 2010, shall not be disqualified as a "dwelling" or be denied
an exemption under this section solely on the basis that the
dwelling was temporarily damaged or destroyed or was being
reconstructed by the owner, or was temporarily uninhabited as a
result of restricted access to the property due to the earthquake.
(aa) The exemption provided for in subdivision (k) of Section 3 of
Article XIII of the California Constitution shall first be applied
to the building, structure, or other shelter and the excess, if any,
shall be applied to any land on which it may be located.
SEC. 6. SEC. 7. Section 17207 of the
Revenue and Taxation Code is amended to read:
17207. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Forest fire or any other related casualty occurring in 1985 in
California.
(2) Storm, flooding, or any other related casualty occurring in
1986 in California.
(3) Any loss sustained during 1987 as a result of a forest fire or
any other related casualty.
(4) Earthquake, aftershock, or any other related casualty
occurring in 1987 in California.
(5) Earthquake, aftershock, or any other related casualty
occurring in 1989 in California.
(6) Any loss sustained during 1990 as a result of fire or any
other related casualty in California.
(7) Any loss sustained as a result of the Oakland/Berkeley Fire of
1991, or any other related casualty.
(8) Any loss sustained as a result of storm, flooding, or any
other related casualty occurring in February 1992 in California.
(9) Earthquake, aftershock, or any other related casualty
occurring in April 1992 in the County of Humboldt.
(10) Riots, arson, or any other related casualty occurring in
April or May 1992 in California.
(11) Any loss sustained as a result of the earthquakes that
occurred in the County of San Bernardino in June and July of 1992, or
any other related casualty.
(12) Any loss sustained as a result of the Fountain Fire that
occurred in the County of Shasta, or as a result of either of the
fires in the Counties of Calaveras and Trinity that occurred in
August 1992, or any other related casualty.
(13) Any loss sustained as a result of storm, flooding, or any
other related casualty that occurred in the Counties of Alpine,
Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles,
Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside,
San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma,
Tehama, Trinity, and Tulare, and the City of Fillmore in January
1993.
(14) Any loss sustained as a result of a fire that occurred in the
Counties of Los Angeles, Orange, Riverside, San Bernardino, San
Diego, and Ventura, during October or November of 1993, or any other
related casualty.
(15) Any loss sustained as a result of the earthquake,
aftershocks, or any other related casualty that occurred in the
Counties of Los Angeles, Orange, and Ventura on or after January 17,
1994.
(16) Any loss sustained as a result of a fire that occurred in the
County of San Luis Obispo during August of 1994, or any other
related casualty.
(17) Any loss sustained as a result of the storms or flooding
occurring in 1995, or any other related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms and flooding.
(18) Any loss sustained as a result of the storms or flooding
occurring in December 1996 or January 1997, or any related casualty,
sustained in any county of this state subject to a disaster
declaration with respect to the storms or flooding.
(19) Any loss sustained as a result of the storms or flooding
occurring in February 1998, or any related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the
winter of 1998-99, or any related casualty, sustained in any county
of this state subject to a disaster declaration with respect to the
freeze.
(21) Any loss sustained as a result of an earthquake occurring in
September 2000, that was included in the Governor's proclamation of a
state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee
break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred
in the Counties of Los Angeles, Riverside, San Bernardino, San Diego,
and Ventura in October and November 2003, or as a result of floods,
mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San
Luis Obispo as a result of the San Simeon earthquake, aftershocks,
and any other related casualties.
(25) Any losses sustained as a result of the wildfires that
occurred in Shasta County, commencing August 11, 2004, and any other
related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and
Ventura as a result of the severe rainstorms, related flooding and
slides, and any other related casualties, that occurred in December
2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine,
Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado,
Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa,
Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas,
Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz,
Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter,
Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe
rainstorms, related flooding and slides, and any other related
casualties, that occurred in December 2005, January 2006, March 2006,
or April 2006.
(28) Any loss sustained in the County of San Bernardino as a
result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura
as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno,
Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San
Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara,
Stanislaus, Tulare, Ventura, and Yuba that were the subject of the
Governor's proclamations of a state of emergency for the severe
freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of
wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and
Ventura as a result of the Zaca Fire that occurred during the 2007
calendar year.
(33) Any loss sustained in the County of Inyo as a result of
wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a
result of wildfires that occurred during the 2007 calendar year that
were the subject of the Governor's disaster proclamations of
September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of
extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity as a result of wildfires that occurred in May or June 2008
that were the subject of the Governor's proclamations of a state of
emergency.
(37) Any loss sustained in the County of Santa Barbara as a result
of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the
severe rainstorms, related flooding and landslides, and any other
related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of
wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura
as a result of wildfires that commenced in October 2008 or November
2008 that were the subject of the Governor's proclamations of a state
of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and
San Bernardino as a result of wildfires that commenced in November
2008.
(43) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in May 2009.
(44) Any loss sustained in the County of Imperial as a result of
the earthquake that occurred in April 2010.
(b) (1) In the case of any loss allowed under Section 165(c) of
the Internal Revenue Code, relating to limitation of losses of
individuals, any excess disaster loss shall be carried forward to
each of the five taxable years following the taxable year for which
the loss is claimed. However, if there is any excess disaster loss
remaining after the five-year period, then the applicable percentage,
as set forth in paragraph (1) of subdivision (b) of Section 17276,
of that excess disaster loss shall be carried forward to each of the
next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the adjusted taxable income for each of
the prior taxable years to which that excess disaster loss is
carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code which exceeds the
adjusted taxable income of the year of loss or, if the election under
Section 165(i) of the Internal Revenue Code is made, the adjusted
taxable income of the year preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(f) For purposes of this section, "adjusted taxable income" shall
be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
(g) For losses described in paragraphs (15) to (44), inclusive, of
subdivision (a), the election under Section 165(i) of the Internal
Revenue Code may be made on a return or amended return filed on or
before the due date of the return (determined with regard to
extension) for the taxable year in which the disaster occurred.
SEC. 7. SEC. 8. Section 24347.5 of
the Revenue and Taxation Code is amended to read:
24347.5. (a) An excess disaster loss, as defined in subdivision
(c), shall be carried to other taxable years as provided in
subdivision (b), with respect to losses resulting from any of the
following disasters:
(1) Forest fire or any other related casualty occurring in 1985 in
California.
(2) Storm, flooding, or any other related casualty occurring in
1986 in California.
(3) Any loss sustained during 1987 as a result of a forest fire or
any other related casualty.
(4) Earthquake, aftershock, or any other related casualty
occurring in October 1987 in California.
(5) Earthquake, aftershock, or any other related casualty
occurring in October 1989 in California.
(6) Any loss sustained during 1990 as a result of fire or any
other related casualty in California.
(7) Any loss sustained as a result of the Oakland/Berkeley Fire of
1991, or any other related casualty.
(8) Any loss sustained as a result of storm, flooding, or any
other related casualty occurring in February 1992 in California.
(9) Earthquake, aftershock, or any other related casualty
occurring in April 1992 in the County of Humboldt.
(10) Riots, arson, or any other related casualty occurring in
April or May 1992 in California.
(11) Any loss sustained as a result of the earthquakes or any
other related casualty that occurred in the County of San Bernardino
in June and July of 1992.
(12) Any loss sustained as a result of the Fountain Fire that
occurred in the County of Shasta, or as a result of either of the
fires in the Counties of Calaveras and Trinity that occurred in
August 1992, or any other related casualty.
(13) Any loss sustained as a result of storm, flooding, or any
other related casualty that occurred in the Counties of Alpine,
Contra Costa, Fresno, Humboldt, Imperial, Lassen, Los Angeles,
Madera, Mendocino, Modoc, Monterey, Napa, Orange, Plumas, Riverside,
San Bernardino, San Diego, Santa Barbara, Sierra, Siskiyou, Sonoma,
Tehama, Trinity, and Tulare, and the City of Fillmore in January
1993.
(14) Any loss sustained as a result of a fire that occurred in the
Counties of Los Angeles, Orange, Riverside, San Bernardino, San
Diego, and Ventura, during October or November of 1993, or any other
related casualty.
(15) Any loss sustained as a result of the earthquake,
aftershocks, or any other related casualty that occurred in the
Counties of Los Angeles, Orange, and Ventura on or after January 17,
1994.
(16) Any loss sustained as a result of a fire that occurred in the
County of San Luis Obispo during August of 1994, or any other
related casualty.
(17) Any loss sustained as a result of the storms or flooding
occurring in 1995, or any other related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms and flooding.
(18) Any loss sustained as a result of the storms or flooding
occurring in December 1996 or January 1997, or any related casualty,
sustained in any county of this state subject to a disaster
declaration with respect to the storms or flooding.
(19) Any loss sustained as a result of the storms or flooding
occurring in February 1998, or any related casualty, sustained in any
county of this state subject to a disaster declaration with respect
to the storms or flooding.
(20) Any loss sustained as a result of a freeze occurring in the
winter of 1998-99, or any related casualty, sustained in any county
of this state subject to a disaster declaration with respect to the
freeze.
(21) Any loss sustained as a result of an earthquake occurring in
September 2000, that was included in the Governor's proclamation of a
state of emergency for the County of Napa.
(22) Any loss sustained as a result of the Middle River levee
break in San Joaquin County occurring in June 2004.
(23) Any losses sustained as a result of the fires that occurred
in the Counties of Los Angeles, Riverside, San Bernardino, San Diego,
and Ventura in October and November 2003, or as a result of floods,
mudflows, and debris flows, directly related to fires.
(24) Any losses sustained in the Counties of Santa Barbara and San
Luis Obispo as a result of the San Simeon earthquake, aftershocks,
and any other related casualties.
(25) Any losses sustained as a result of the wildfires that
occurred in Shasta County, commencing August 11, 2004, and any other
related casualty.
(26) Any loss sustained in the Counties of Kern, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and
Ventura as a result of the severe rainstorms, related flooding and
slides, and any other related casualties, that occurred in December
2004, January 2005, February 2005, March 2005, or June 2005.
(27) Any loss sustained in the Counties of Alameda, Alpine,
Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, El Dorado,
Fresno, Humboldt, Kings, Lake, Lassen, Madera, Marin, Mariposa,
Mendocino, Merced, Monterey, Napa, Nevada, Placer, Plumas,
Sacramento, San Joaquin, San Luis Obispo, San Mateo, Santa Cruz,
Shasta, Sierra, Siskiyou, Solano, Sonoma, Stanislaus, Sutter,
Trinity, Tulare, Tuolumne, Yolo, and Yuba as a result of the severe
rainstorms, related flooding and slides, and any other related
casualties, that occurred in December 2005, January 2006, March 2006,
or April 2006.
(28) Any loss sustained in the County of San Bernardino as a
result of the wildfires that occurred in July 2006.
(29) Any loss sustained in the Counties of Riverside and Ventura
as a result of wildfires that occurred during the 2006 calendar year.
(30) Any loss sustained in the Counties of El Dorado, Fresno,
Imperial, Kern, Kings, Madera, Merced, Monterey, Riverside, San
Bernardino, San Diego, San Luis Obispo, Santa Barbara, Santa Clara,
Stanislaus, Tulare, Ventura, and Yuba that were the subject of the
Governor's proclamations of a state of emergency for the severe
freezing conditions that occurred in January 2007.
(31) Any loss sustained in the County of El Dorado as a result of
wildfires that occurred in June 2007.
(32) Any loss sustained in the Counties of Santa Barbara and
Ventura as a result of the Zaca Fire that occurred during the 2007
calendar year.
(33) Any loss sustained in the County of Inyo as a result of
wildfires that commenced in July 2007.
(34) Any loss sustained in the Counties of Los Angeles, Orange,
Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura as a
result of wildfires that occurred during the 2007 calendar year that
were the subject of the Governor's disaster proclamations of
September 15, 2007, and October 21, 2007.
(35) Any loss sustained in the County of Riverside as a result of
extremely strong and damaging winds that occurred in October 2007.
(36) Any loss sustained in the Counties of Butte, Kern, Mariposa,
Mendocino, Monterey, Plumas, Santa Clara, Santa Cruz, Shasta, and
Trinity as a result of wildfires that occurred in May or June 2008
that were the subject of the Governor's proclamations of a state of
emergency.
(37) Any loss sustained in the County of Santa Barbara as a result
of wildfires that occurred in July 2008.
(38) Any loss sustained in the County of Inyo as a result of the
severe rainstorms, related flooding and landslides, and any other
related casualties, that occurred in July 2008.
(39) Any loss sustained in the County of Humboldt as a result of
wildfires that commenced in May 2008.
(40) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in November 2008.
(41) Any loss sustained in the Counties of Los Angeles and Ventura
as a result of wildfires that commenced in October 2008 or November
2008 that were the subject of the Governor's proclamations of a state
of emergency.
(42) Any loss sustained in the Counties of Orange, Riverside, and
San Bernardino as a result of wildfires that commenced in November
2008.
(43) Any loss sustained in the County of Santa Barbara as a result
of wildfires that commenced in May 2009.
(44) Any loss sustained in the County of Imperial as a result of
the earthquake that occurred in April 2010.
(b) (1) In the case of any loss allowed under Section 165 of the
Internal Revenue Code, relating to losses, any excess disaster loss
shall be carried forward to each of the five taxable years following
the taxable year for which the loss is claimed. However, if there is
any excess disaster loss remaining after the five-year period, then
the applicable percentage, as set forth in paragraph (1) of
subdivision (b) of Section 24416, of that excess disaster loss shall
be carried forward to each of the next 10 taxable years.
(2) The entire amount of any excess disaster loss as defined in
subdivision (c) shall be carried to the earliest of the taxable years
to which, by reason of subdivision (b), the loss may be carried. The
portion of the loss which shall be carried to each of the other
taxable years shall be the excess, if any, of the amount of excess
disaster loss over the sum of the net income for each of the prior
taxable years to which that excess disaster loss is carried.
(c) "Excess disaster loss" means a disaster loss computed pursuant
to Section 165 of the Internal Revenue Code, which exceeds the net
income of the year of loss or, if the election under Section 165(i)
of the Internal Revenue Code is made, the net income of the year
preceding the loss.
(d) The provisions of this section and Section 165(i) of the
Internal Revenue Code shall be applicable to any of the losses listed
in subdivision (a) sustained in any county or city in this state
which was proclaimed by the Governor to be in a state of disaster.
(e) Any corporation subject to the provisions of Section 25101 or
25101.15 that has disaster losses pursuant to this section, shall
determine the excess disaster loss to be carried to other taxable
years under the principles specified in Section 25108 relating to net
operating losses.
(f) Losses allowable under this section may not be taken into
account in computing a net operating loss deduction under Section 172
of the Internal Revenue Code.
(g) For losses described in paragraphs (15) to (44), inclusive, of
subdivision (a), the election under Section 165(i) of the Internal
Revenue Code may be made on a return or amended return filed on or
before the due date of the return (determined with regard to
extension) for the taxable year in which the disaster occurred.
SEC. 8. SEC. 9. It is the intent of
the Legislature to provide in the annual Budget Act those additional
reimbursements to local governments that, as a result of Section 5 of
this act, are required by Section 25 of Article XIII of the
California Constitution.
SEC. 9. SEC. 10. The Legislature
finds and declares that this act fulfills a statewide public purpose
because of all of the following:
(a) The Governor of California has officially proclaimed a state
of emergency declaring that the earthquake that occurred within the
County of Imperial on April 4, 2010, constitutes conditions of
extreme peril to public health and safety to persons and property
within that county, thus qualifying affected persons for various
forms of governmental assistance and relief.
(b) This act is consistent with, and supplements, the proclaimed
disaster assistance and relief by providing necessary fiscal
assistance and tax relief to affected jurisdictions and persons to
allow them to maintain essential basic services and repair damage to,
and restore, their homes and businesses.
SEC. 10. SEC. 11. 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.
SEC. 11. SEC. 12. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to timely provide essential relief to those persons and
jurisdictions that have suffered damage or loss as a result of the
earthquake that occurred in the County of Imperial on April 4, 2010,
that was the subject of the Governor's proclamation of a state of
emergency, it is necessary that this act take effect immediately.