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HomeMy WebLinkAboutMINUTES - 08031993 - 1.59 41 PLEASE REPLY TO MEMBER: L S SACRAMENTO ADDRESS BANKING.COMMERCE ROOM 3086.STATE CAPITOL &INTERNATIONAL TRADE COMMITTEE SACRAMENTO 95814 Q BUDGET AND FISCAL REVIEW TELEPHONE:(916)445-6083 ,�cnatp COMMITTEE CENTRAL COUNTY - a� 1001 GALAXY WAY ELECTIONS AND REAPPORTIONMENT �, ifaq COMMITTEE ElSUITE 210 furtttt tolur� REVENUE AND TAXATION COMMITTEE CONCORD 94520 TELEPHONE:(510)6891973 TRANSPORTATION COMMITTEE EAST COUNTY 420 W.THIRD STREET CHAIRMAN: ANTIOCH 94509 DANIEL E: BOATWRIG HT BUDGET SUBCOMMITTEE NO.4 4 TELEPHONE:(510)753011 ON LEGISLATIVE,EXECUTIVE. CHAIRMAN BUSINESS.TRANSPORTATION, 9�tips HOUSING.AND GENERAL COMMITTEE ON BUSINESS AND PROFESSIONS GOVERNMENT CHAIRMAN: 1 SUBCOMMITTEE ON SPORTS CHAIRMAN: `�Cg13V ~ SELECT COMMITTEE ON STATE PROCUREMENT AND EXPENDITURE PRACTICES July 22 , 1993 REPRESENTING: SEVENTH SENATORIAL DISTRICT Tom Torlakson, Chair RECEIVED Board of Supervisors Contra Costa County JUL 2 3 ISAMW 651 Pine Street Martinez, CA 94553 CLERK BOARD OF SUPERVISORS CONTRA COSTA CO. Dear Tom: Enclosed is a copy of a bill, SB 1234 (Bergeson) , which should be of critical concern to the Board of Supervisors. SB 1234 was introduced to address the perceived need to realign the fiscal and programmatic relationships between the state and local agencies -- a goal that many of us consider laudable. However, in attempting to ensure that the Legislature and Governor reach consensus on some form of realignment, Senator Bergeson has included a "penalty" provision in SB 1234 that will almost certainly result in the shutting down of the operations of the county as of July 1, 1994. SB 1234 creates a twelve-member committee to make recommendations on changes that should be made in the existing state-local alignment. If the Legislature and Governor fail to act upon the committee's recommendations by July 1, 1994, SB 1234 specifically requires that all property taxes, local sales taxes, vehicle license fees and state sales taxes be sequestered as of that date. Lest it be forgotten so quickly, this year was the first time in the past seven years that the Legislature and Governor were able to agree upon our budget by our constitutional deadline. Cc ; CA-0 There is absolutely no basis for assuming that the Legislature and Governor will be able reach consensus on an issue as far-reaching as the reordering of the state-local government financing and programmatic relationship by this deadline. ' The sequestering of these monies will mean that the county has no money to operate -- no money to pay for law enforcement services, fire protection services or any other of the myriad of local government services that you are responsible for funding and operating. While I didn't hear from any of my cities or the county on this bill, I spoke vehemently against SB 1234 when it was on the Senate Floor because of the serious implications that it will have for the county and every city in my district if it becomes law. Defeat of this legislation should be of utmost concern to the Board. As you may be aware, the California State Association of Counties has taken a position in support of this bill. I would hope that the Contra Costa County Board of Supervisors would see fit to urge CSAC to change its position on SB 1234 . I cannot possibly stress in any stronger terms the urgency of contacting Assemblymembers' Campbell, Rainey and Bates to urge their opposition to this bill while it is under consideration in the Assembly. Sincerely, IEL E. BOATWRIGHT DEB/ts Enclosure PAGE 1 Display 1993-1994 Bill Text .- INPikkATION BILL NUMBER: SB 1234 BILL TEXT AMENDED IN SENATE JUNE 18, 1993 INTRODUCED BY eemmittee an Budget and Fisea+ Review Senator Bergeson (Principal coauthor: Assembly Member Isenberg) MARCH 16, 1993 An set relating to lees+ government revenues; and dee-laring the urgeney thereof; to take effeet immediately.- An act to add Section 33365.5 to the Health and Safety Code, and to amend Section 97 of, to add Sections 97.10, 6051.01., and 6201.01 to, to repeal and add Section 11005 of, and to repeal Sections 7202 and 7203 of, the Revenue and Taxation Code, relating to government financing. LEGISLATIVE COUNSEL'S DIGEST SB 1234, as amended, eemmittee an Budget and Piseai Review Bergeson. Government financing. Existing law establishes the Hdueatienai Revenue Augmentation Fund far a++eeatien of property tax revenues in a speeified manner.- . This bili would state the intent of the Legislature to make the neeessary statutery ehanges to implement the Budget Aet of 1993; relative to the Bdueatienal Revenue Augmentation Fund.- This bili would deeiare that it is to take effeet immediately as an urgeney statute- Existing law, known as the Community Redevelopment Law, authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined, in those communities. Existing law establishes the procedures for a legislative body of a city or county to enact an ordinance to. ado t a redevelopment plan for a project area, as defined. This bill would provide that, notwithstanding provisions of existing law, a legislative body of a city or county shall not enact an ordinance to adopt or•amend a redevelopment plan for a project area on or after January 1, 1994, except under specified circumstances Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenues to local jurisdictions pursuant to specified formulas and procedures, and generally provides that each jurisdiction shall be allocated, in part, an amount equal to the amount of property tax revenue allocated to that jurisdiction in the prior fiscaley ar, subject to certain modifications. PAGE 2 r1 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT This bill would revise these allocation provisions !?y providing, for the 1994-95 fiscaley ar, that the amount of property tax revenue deemed allocated for the prior fiscal year to each jurisdiction shall be zero and would require that the amount of revenue not so allocated be deposited in the Government Equity Revenue Allocation Fund, which the bill would require to be established in each county. The existing Sales and Use Tax Law imposes a tax on therg oss receipts from the sale of, or the storage, use, or other consumption in this state of, tangible personal property at specified rates. This bill would require that 70% of state sales and use tax revenues be deposited in the Sales and Use Tax Revenue Account of the Special State Sequester Fund, which the bill would create. Under the existing Bradley-Burns Uniform Local Sales and Use Tax Law, counties and cities are authorized to impose local sales and use taxes in conformity with state sales taxes at the rate of 1.25$. — — This bill would repeal those provisions. Under existing- law, revenues from vehicle license fees in excess of the costs of collection are apportioned to the cities and counties according to certain specified formulas. This bill would repeal that provision, and would instead require that revenues from vehicle license fees in excess of the costs of collection be deposited in the Vehicle License Fee Account of the Special State Sequester Fund, which would be created by the bill. This bill would specify that it is the Legislature's intent that no moneys be allocated from the Sales and Use Tax Revenue Account or the Vehicle License Fee Account until the Joint Legislative Committee on Realignment, which would be created !Ry the bill, has reported its recommendations and both houses and the Governor have acted upon its recommendations. This bill would provide for the establishment of the Joint Legislative Committee on Realignment, specify its powers and duties, and provide for its termination on March 11, 1994. This bill would also specify legislative findings and declarations regarding the realignment of fiscal and programmatic relationships between the state government and local agencies to assist in the resolution of the state's fiscal crisis. The bill would provide that specified sections of the bill would become operative on July 1, 1994, unless a later enacted statute, which is chaptered before July 1, 1994, deletes or extends that date. Vote: 22 3 majority. Appropriation: no. Fiscal committee: ne yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: sEeTfeH 47 it is the intent of the Legislature in enaeting this net to make the neeessary statetery ehanges to implement the Budget PAGE 3 Display 1993-1994 Bill Text - INiORMATION BILL NUMBER: SB 1234 BILL TEXT Aet of 1993; relative to the Bdueatienal Revenue Augmentation Fund established pursuant to seetion 99793 of the Revenue and Taxation eede- sBe- 27 This set is -an ergeney statute neeessary for the immediate preservation of the publie peaee; health; or safety within the meaning of Artiele IV of the eenstitutien and shall ge inte immediate effeet- The faets eenstituting the neeesstty are- In order to make the neeessary statutory ehanges to implement the Budget Aet of 1993 at the earliest possible time; it is neeessary that this aet take effeet immediately.- SECTION 1. (a) The Legislature finds and declares as follows: The recent repeated annual budget crises have exposed serious problems in the fiscal and programmatic relationships between the state government and local agencies. (2Z The current complex web of federal and state mandates, funding sources, and programmatic relationships are economically inefficient, concealup blic accountability, and block political responsiveness. (3) The Legislature and the Governor have generally avoided solving those underlying problems while they struggled with each year's budget. As long as these problems remain unsolved, public officials and their constituents have trouble delivering the services needed to protect the public health, safety, and welfare. All parties realize that the current budget process destroys cooperation among governments and produces dysfunctional programs. In short, lurching from crisis to crisis .does not serve Californians' long-term needs. (5) The process of preparing and adopting an annual budget does not create opportunities for solving long-term structural problems. Because this process cannot reform itself, the Legislature .must take a dramatic step to break the cycle of crisis. In enacting this act, it is the intent of the Legislature to create an unprecedented set of circumstances that will focus the attention of the Legislature, the Governor, state and local officials, and their constituents on the need to realign the fiscal and programmatic relationships between the state government and local agencies. (C)_ It is the further intent of the Legislature in enacting this act to create new opportunities to realign the fiscal and programmatic relationships between the state government and local agencies in time for the 1994-95 fiscal year which begins on July 1, 1994. It is the further intent of the Legislature that the process created !2y this act shall result in the rational realignment of the fiscal and programmatic relationships between the state government and local agencies. SEC. .2. Section 33365.5 is added to the Health and Safety Code, to read 33365.5. jai Notwithstanding any other provision of this part or Part 1.5 (commencing with Section 34000), a legislative body shall not enact any ordinance to adopt a redevelopment plan for a PAGE 4 Display 1993-1994 Bill Text - INVORMATION BILL NUMBER: SB 1234 BILL TEXT project area on or after January 1, 1994, except as provided in Subdivision (c) • (bb) Notwithstanding any other provision of this part or Part 1.5 (commencing with Section 34000) , a legislative body shall not enact any ordinance to amend a redevelopment plan for a project area on or after January 1, 1994, except as provided in subdivision (c) , if the amendment to the plan would do any of the following: L1 Add new territory to the project area. Increase the limitation on the number of dollars to be allocated to the redevelopment agency. Increase the time limit on the establishment of loans, advances, and indebtedness established pursuant to subdivisions (1) and (22) of Section 33333.2. �4) Lengthen theep riod during which the redevelopment plan is effective. (5Z Merge project areas. (6Z Add significant additional capital improvement projects. (cZ The prohibition of subdivision (a) shall not apply if the planning commission has submitted a preliminary plan for the project area to the agency pursuant to Section 33325 prior to January 1, 1994. The prohibition of subdivision J�J shall not apply if the agency has prepared and sent to the affected taxing entities a preliminary report pursuant to Section 33344.5 prior to January 1, 1994. SEC. 3. Section 97 of the Revenue and Taxation Code is amended to read 97. Except as otherwise provided in Sections. 97.01, 97.03, 97.3,. 97.10, 97.32, 97.35, and 97.38 for the 1980-81 fiscal year and each fiscal year thereafter, and subject to Section 98.6, property tax revenues shall be apportioned to each jurisdiction pursuant to this section and Section 97.5 by the county auditor, subject to allocation and payment of funds as provided for in subdivision (b) of Section 33670 of the Health and Safety. Code, to each jurisdiction in the following manner: (a) Except as provided in subdivision (b) , for each tax rate area, each jurisdiction shall be allocated an amount of property tax revenue equal to the amount of property tax revenue allocated pursuant to this chapter to each jurisdiction in the prior fiscal year, modified by any adjustments required by Section 99 or 99.4. (b) For each tax rate area, each special district shall be allocated an amount of property tax revenue equal to the amount of.property tax revenue which would have been allocated pursuant to this chapter to the district in the prior fiscal year if no adjustment had been made pursuant to Section 98.6. This amount shall then be adjusted for the current year pursuant to Section 98.6. (c) The difference between the total amount of property tax revenue and the amounts allocated pursuant to subdivision (a) shall be allocated pursuant to Section 98, and shall be known as the "annual tax increment." (d) For purposes of this section, the amount of property tax revenue referred to in subdivision (a) shall not include amounts generated by the increased assessments under Chapter 3.5 (commencing with Section 75) . PAGE 5 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT (e) (1) Notwithstanding any other provision of law, for the 1990-91 fiscal year, for the purposes of the computations required by this section, the amount of property tax presumed to have been received by the county in the prior year shall be increased by the amount of 1989-90 property tax administrative costs proportionately attributable to incorporated cities as determined pursuant to paragraph (2) . (2) The auditor shall determine the 1989-90 fiscal year property tax administrative costs proportionately attributable to incorporated cities by adding the 1989-90 fiscal year property tax-related costs of the assessor, tax collector, and auditor, including applicable administrative overhead costs as permitted by federal Office of Management and Budget Circular A-87 standards, . and multiplying the sum of those amounts by the ratio of property tax revenue received by all incorporated cities divided by the total property tax revenue for all local jurisdictions in the county for that fiscal year. (3) The county shall use the additional revenue received pursuant to this subdivision only to fund the actual costs of assessing, collecting, and allocating property taxes. At least once each fiscal year, the county auditor shall report the amount of these actual costs and allowable overhead costs to the legislative body and any other jurisdiction or person that request the information. To the extent that actual costs for assessing, collecting, and allocating property taxes plus allowable overhead costs are less than the amount determined pursuant to paragraph (2) , the county auditor shall apportion the difference to each incorporated city as otherwise required by this section. (4) The county may retain up to one-half of any increased property tax allocation to which a jurisdiction may be otherwise entitled, until the county receives its additional revenues pursuant to this subdivision. (5) It is the intent of the Legislature in enacting this subdivision to recognize that since the adoption of Article XIIIA of the California Constitution by the voters, county governments have borne an unfair and disproportionate part of the financial burden of assessing, collecting, and allocating property tax revenues for cities. It is further the intent of the Legislature that the adjustments provided for by this subdivision shall constitute charges .by a county for the assessment, collection, and allocation of property taxes and shall not exceed the actual costs .reasonably borne by a county for those activities. (f) If so directed by the board of supervisors, the auditor shall determine the 1989-90 fiscal year property tax administrative costs proportionately attributable to local jurisdictions other than the county or city and county, and cities, by adding the property tax.-related costs of the assessor, tax collector, and auditor, including applicable administrative overhead costs as permitted by federal Office of Management and Budget Circular A-87 standards, and multiplying the sum .of those amounts by the ratio of property tax revenue received by jurisdictions other than the county, city and county, and cities, divided by the total property tax received by all local jurisdictions in the county for that fiscal year. Notwithstanding any other provision of law, this amount may be calculated for each fiscal year commencing with the 1989-90 fiscal year, and the auditor shall, commencing in fiscal year 1990-91, if so directed by the board of supervisors, submit an invoice to these jurisdictions for services .rendered in the prior fiscal year. PAGE 6 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT (g) Notwithstanding subdivision (f), no invoice as described in that subdivision shall be submitted to any school district, community college district, or county office of education, nor shall any of those entities be required to pay any invoice, for property tax administrative costs for services rendered in the 1990-91 fiscal year, or in any subsequent fiscal year. This subdivision shall not be construed to prevent the auditor of any county from imposing and collecting from school districts, community college districts, and county offices of education, in accordance with subdivision . (f) , invoices for property tax administrative costs for services rendered to those entities in the 1989-90 fiscal year. SEC. 4. Section 97.10 is added to the Revenue and Taxation Code; to read: 97.10. Notwithstanding any other provision of this chapter, the computations and allocations made �y each county pursuant to Section 97 shall be modified for the 1994-95 fiscal year pursuant to subdivisions (a) and (b) as follows: (a) The amount of property tax revenue deemed allocated in the prior fiscal year to each jurisdiction shall be zero. (bb) The amount of property tax revenues not allocated to jurisdictions as a result of reductions calculated pursuant to subdivision (a) shall be deposited in the Government Equity Revenue Allocation Fund to be established in each county. SEC. S. Section 6051.01 is added to the Revenue and Taxation Code, to read: 6051.01. (a) Seventy percent of the amount collected pursuant to Section 6051 shall be deposited in the Sales and Use Tax Revenue Account of the Special State Sequester Fund which is hereby created for that purpose. It is the intent of .the Legislature not to allocate any money out of the Sales and Use Tax Revenue Account of the Special State Sequester Fund until the Joint Legislative Committee on Realignment has reported its recommendations, and both houses and the Governor have'acted upon the joint committee's recommendations. SEC. 6. Section 6201.01 is added to the Revenue and Taxation Code, to read: 6201.01. Sa Seventy percent of the amount collected pursuant to Section 6201 shall be deposited in the Sales and Use Tax Revenue Account of the Special State Sequester Fund which is created in Section 6051.01. It is the intent of the Legislature not to allocate any money out of the Sales and Use Tax Revenue Account of the Special State Sequester Fund until the Joint Legislative Committee on Realignment has reported its recommendations, and both houses and the Governor have acted upon the joint committee's recommendations. SEC. 7. Section 7202 of the Revenue and Taxation Code is repealed. 4292- The sales tax portion of any sales and use tax erdinanee adapted ander this part shall be imposed for the privilege of selling tangible perseaal property at. retail; and shall inelude previsions in substanee as fellewa- PAGE 7 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT fa} A provision imposing a tax for the privilege of selling tangible pereenal property at retail open every retailer in the eeunty at the rate of llf4 pereent of the groes reeeipts of the retailer from the sale of all tangible personal property sold by that person at retail in the eeunty- fb} Previsions identieel to these eentained in Part 1 feemmeneing with Seetien 6991}; insefar as they relate to sales taxes; exeept that the name of the eounty as the taxing ageney shall be substituted for that of the state and that an additional seller1s permit shall net be required -if one has been or is issued to the seller under Seetien 69637 fe} A prevision that all amendments subsequent to the effeetive date of the enaetment of Part 1 feemmeneing with Seetien 69911 relating to sales tax and net ineensistent with this part; shall autematieally beeeme a part of the sales tax erdinanee of the eeunty- fd} A prevision that the eeunty shall eentraet prier to the effeetive date of the .eeunty on-lee and use tax erdinanees with the State Beard of Hqualizatien to perform all funetiens ineident to the administration or eperatien of the sales and use tax erdinanee of the eeunty- Any sueh eentraet shall eentain a prevision that the eeenty agrees to eemply with the previsiens of Artiele 11 feemmeneing with Seetien 39539} of ehapter 3 of Bivisien 3 of Title 3 of the Government eede- fe} A prevision that the erdinanee may be made inoperative net less than 69 days; but net earlier than the first day of the ealendar quarter; fallowing the eeunty-Le laek of eemplianee with Artiele 11 feemmeneing with Seetien 39539} of ehapter 3 of Bivisien 3 of Title 3 of the Government Bede or fellewing an inerease by any eity within the eeunty of the rate of its sales or use tax above the rate in effeet at the time the eeunty erdinanee was enaeted- ff} A prevision that the amount sub�eet to tax shall net inelude the amount of any sales tax or use tax imposed by the State of ealifernia upon a retailer er eensumer- fg} A prevision that there is exempted from the sales tax 89 pereent of the grass reeelpts from the sale of tangible personal preperty; ether than fuel or petroleum preduets; to operators of aireraft to be used or eensumed prineipally outside the eeunty in whieh the sale is made and direetly and exelusively in the use of the aireraft as eemmon earriers of persons or property under the autherity of the laws of this state,- the United States,- er any foreign government.- fh} A prevision that any person sub�eet to a sales and use tax under the eeunty erdinanee shall be entitled to eredit against the payment of taxes due under that erdinanee the amount of sales and use tax due to any eity in the eeunty; previded; that the eity sales and use tax is levied under an erdinanee ineluding previsions in substanee as fellows- fli A prevision impesing a tax for the privilege of selling PAGE S Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT tangible personal property at retail upon every retailer in the eity at the rate of l pereeat or leas of the grass reeeipts of the retailer from the sale of all tangible persenal property said by that person at retail in the eity and a use tax of l pereeat or less of purehase priee open the sterage; use or ether eensumption of tangible personal property purehased from a retailer far storage; use or eensumptien in the eity- f2} Previsions identieal to these eentained in Part l feemmeneing with Seetien 6901}; insefar as they relate to axles and use taxes; exeept that the name of the eity as the taxing ageney shall be substituted far that of the state fbet the name of the eity shall net be substituted far the ward "state" in the phrase "retailer engaged in business in this state" in Seetien 6203 nor in the definitien of that phrase in 6eetien 6203} and that an additienal seller-Ls permit shall net be required if one has been or is issued to the seller under 6eetien 606q- f3} A prevision that all amendments subsequent to the effeetive date of the enaetment of Part + feemmeneing with 6eetien 6001} relating to sales and use tax and net ineensistent with this part; shad autematieally beeeme a part of the sales and use tax erdinanee of the eity- f4} A prevision that the eity shall eentraet prier to the effeetive date of the eity sales and use tax erdinanee with the State Beard of Hqualiaatien to perform all funetiens ineident to the administration er operation of the sales and use tax erdinanee of the eity whieh shall eentinue in effeet so long as the eeunty within whieh the eity is leeated has an operative sales and use tax erdinanee enaeted pursuant to this pert- f5} A previsien that the storage; use er ether eensumptien of tangible persenal property; the grass reeeipts from the sale of whieh has been sub�eet to sales tax under a sales and use tax erdinanee enaeted in aeeerdanee with this part by any eity and eeunty; eeunty; er eity in this state; shell be exempt from the tax due under this erdinanee.- f6} A prevision that the amount sub�eet to tax shall net inelude the ameent of any sales tax or use tax imposed by the State of ealifernia open a retailer or eensumer- f9} A prevision that there are exempted frem the eemputatien of the amount of the sales tax. the grecs reeeipts from the sale of tangible personal property to operators of aireraft to be used er eensumed prineipally outside the eity in whieh the sale is made and direetly and exelusively in the use of the aireraft as eemmen Barriers of persens or property ander the autherity of the laws of this .state; the United States; er any fereign gevernment- f8t A prevision that; in addition to the exemptiens provided in Seetiens 6366 and 6366747 the sterage; use; er ether eensumptien of tangible personal property purehased by eperaters of aireraft and used er eensumed by the eperaters direetly and exelusively in the use of the aireraft as eemmen earriers of persons or property for hire or eempensatien under a eertifieate of publie eenvenienee and PAGE 9 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT neeessity issued pursuant to the laws of this state; the United States; er any foreign government is exempt from the use tax.- SEC. 8. Section 7203 of the Revenue and Taxation Code is repealed. 3$637 The use tax portion of any sales and use tax erdinanee adapted under this part shall impese a eemplementary tax open the sterage; use er ether eensumptien in the eeunty of tangible personal property purehased frem any retailer far sterage; use er ether eensumptien in the eeunty- That tax shall be at the rate of 11f4 pereent of the sales priee of the property whose sterage; use er ether eensumptien is sub?eet to the tax and shall inelude- fa} Previsiens identieal to the previsions eentained in Part 1 feemmeneing with Seetien 6691}; ether than Seetien 6391 insefar as these previsiens relate to the use tax; exeept that the name of the eeunty as the taxing ageney enaeting the erdinanee shall be substituted far that of the state fbut the name of the eeunty shall net be substituted for the werd ',stateu in the phrase ',retailer engaged in business in this state', in Seetien 6663 ner in the definition of that phrase in Seetien 6263}7 fbt A prevision that all amendments subsequent to the date of sueh erdinanee to the previsiens of the Revenue and Taxation Bede relating to the use tax and net ineensistent with this part shah autematieally beeeme a part of the erdinanee.- fe} A prevision that the sterage,,- use er ether eensumptien of tangible personal property; the grass reeeipts from the sale of whieh has been sub?eet to sales tax under a sales and use tax erdinanee enaeted in aeeerdanee with this part by any eity and eeenty- eeunty- or eity in this state; shall be exempt from the tax due under this erdinanee- fd} A prevision that the ameunt sub?eet to tax shall net inelude the ameunt of any sales tax or use tax impesed by the state of ealifernia open a retailer er eensumer- fe} A prevision that; in additien to the exemptions previded in Seetiens 6366 and 636671; the sterage; use; or ether eensumptien of tangible personal preperty; ether then fuel or petreleum predueta purehased by eperaters of aireraft and used er eensumed by the operaters direetly and exelusively in the use of the aireraft as eemmen earriers of persons or preperty for hire er eompensatien under a eertifieate of publie eenvenienee and neeessity issued pursuant to the laws of this state; the United states or any fereign government is exempt from 86 pereent of the use tax..- . SEC. 9. Section 11005 of the Revenue and Taxation Code is repealed. 116657 fa} After payment of refunds therefrem and after making the deduetiens autherized by Seetien 11663 and reserving the ameunt determined neeessary by the Peeled Money investment Beard to meet the transfers ordered or proposed to be erdered pursuant to Seetien 16318 of the Severnment Bede; eemmeneing with the 1989-96 fiseal year; the eentreller shall deduet that ameunt whieh is neeessary to PAGE 10 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT make the alleeation provided far in Seetien 99393-5 of the Government eode- Eighty-ene and ene-quarter pereent of the balanee of all meter vehiele lieense fees and any ether money appropriated by law far expenditure pursuant to this seetion and deposited to the eredit of the Meter Vehiele bieense Fee Aeeount in the Transportation 'Pax Fund and remaining unexpended therein at the elese of business an the last day of the ealendar month shall be alleeated by the eentreller by the 19th day of the following month in the manner provided by subdivisions fe} and fd}- fbt Eighteen and three-quarters pereent of the balanee shall be alleeated; as felleas- " fl} fAt eemmeneing with the 1988-89 fiseal year; the eentreller shall alleeate to eaeh eity that existed but did net levy a property tax in the 1999-48 .fiseal year; ether than far voter-approved indebtedness- an .emownt equal to the total amount whieh eaeh of these eities would have reeeived in that fiseal year pursuant to 6eetien 25961 of the Business and Professions eede; 6eetien 4366 of the Publie Utilities eede; and 6eetien 226483 of this eede; as if these seetiens were eperative in that fiseal year in the farm to whieh they existed an June IT 1981.- Per eaeh fiseal year thereafter; the eentreller shall inerease the amount far eaeh eity eemputed pursuant to this paragraph by the pereent by whieh the revenue to the Meter Vehiele bieense gee Aeeeunt ineregsed ever the revenue far the previews fiseal year.- fB} fit Per eaeh fiseal year fellewing .the 4988-89 fiseal year in whieh a eity sub�eet to subparagraph fAt reeeives a distribution of property tax revenue pursuant to 6eetien 9q735; 9473q; or 9q738; the ameunt to be alleeated to the eity pursuant to subparagraph fAt shall be redueed by the ameent of the distribution made pursuant to these seetiens- fii} No alleeatien shall be made to a eity pursuant to subparagraph fAt in the first fiseal year in whieh the amount distributed to a eity pursuant to 6eetien 99..35; 99..39; or 99..38 equals er exeeeds the amount that weuld have been alleeated to that eity pursuant to subparagraph fAt or in any fiseal year thereafter- fiii} Any amount net alleeated to a eity pursuant to subparagraph fAt as a result of the operation of this subparagraph shall be alleeated to eligible eities in aeeerdanee with elause fiv} . fiv} eemmeneing with the 4989-99 fiseal year; the eentreller shall alleeate the ameent determined in elause fiiit far eaeh fiseal year to eaeh-eligible eity in the proportion that the pepwlatien of eaeh eligible eity bears to tetal pepulatien of all eligible eities: PAGE 11 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT Per purposes of this elapse; ueligible eityu means any eity whieh ineerperated prier to June 5; +989; and had an amount of property tax revenue &lleeated to it pursuant to subdivision fat of 6eetien 99 in the +989-88 fiseal year whieh is less than +8 pereent of the amount of property tax revenue eemputed fer the +989-88 fiseal year in eeeerdanee with the method deseribed in subdivision fe} of 6eetien 9q-35: The auditer shall notify the eentreller of his or her determination of these eities within the eaenty whieh are eligible eities- f8} Haeh menth the eentreller shall alleente the remainder of the amount determined pursuant to this subdivision to eeunties and eities and eeenties in an amount for eaeh eounty and eity and eeunty equal to the revenue reeeived in the +982-83 fiseal year pursuant to farmer 6eetien +6+++7 sabdivisien fe} of farmer 6eetien 46++3; and farmer 6eetien +6++379 of the Government eede- These amounts shall be determined by the eentreller with the eeneurrenee of the Bireeter of Finanee- The 2entreller shall alleeate any remaining amount determined pursuant to this subdivision to eeanties and eities and eeenties in the proportion that the pepalatien of eaeh eeunty or eity and eeunty bears to the total population of all the eeunties and eities and eeunties of the state; as determined pursuant to subdivision fd}- fe} Fifty pereent of the payments required by subdivision fa} shall be paid to the eities and eities and eeunties of this state in the proportion that the papulation of eaeh eity er eity and eeunty bears to the total pepulation of all eities and eities and eeuntiee in this state; as determined by the population researeh unit of the Bepartment of Finanee. Per the purpose of this subdivision; the papulation of eaeh eity er eity and eeenty is that determined by the last federal deeennial or speeial eensus; or a subsequent eensns validated by the population researeh unit or subsequent estimate prepared pursuant to 6eetien 3+03-2 of the Streets and Highways Bede- in the ease of a eity ineerperated subsequent to the last federal eensns; or a subsequent eensns validated by the papulation researeh unit; the population researeh unit shall determine the pepulatien of the eity- In the ease of unineerperated territory being annexed to a eity subsequent to the last federal eensns; er a subsequent eensns validated by the population researeh unit,- the pepnlatien researeh unit shall determine the pepulatien of the annexed territory by the use of any federal deeennial or speeial eensns; or estimate prepared pursuant to 6eetien 3+99-3 of the Streets and Highways eede- In the ease of the eenselidetien of one eity with &nether subsequent to the last federal eensns; er a subsequent eensns validated by the papulation researeh unit; the papulation of the eenselidated eity; for the purpose of this sabdivisien; is the aggregate papulation of the respeetive eities as determined by the last federal eensns; or a subsequent eensns er estimate validated by the papulation researeh unit- PAGE 12 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT fd} Fifty pereent of the payments required by subdivisien fa} shall be paid to the eeenties and eities and eednties of the state in the proportion that the pepulatien of eaeh eeunty er eity and eeenty bears to the total pepulatien of ail the eednties and eities and eeunties of the state; as determined by the population researeh unit.- Per the purpose of this subdivision; the pepulatien of eaeh eeunty er eity and eeenty is that determined by the last federal eensus; or subsequent eenses validated by the pepulatien researeh Unit; or as determined by Seetien 1199576- fe} Money disbursed by the eentreller to eities and eednties pursuant to this seetien may be deed fer eeenty or eity purposes and may; but need net neeessarily; be Used fer purposes of general interest and benefit to the state.- ff} Pepolatien ehanges based en a federal speeial eensus or a subsequent eensds validated by the Bepartment of Finanee shall be neeepted by the eentreller only if eertified to him at the request of the eity; eity and eednty; or eednty fer whieh the eensds was made and shall beeeme effeetive en the first day of the menth fallowing reeeipt of the eertifieatien- SEC. 10. Section 11005 is added to the Revenue and Taxation Code, to read: 11005. (a) Commencing with the 1994-95 fiscal year, the Controller shall deposit the balance of- all motor vehicle license fees, net of the amounts in subdivisions (b) and (c) , in the Vehicle License Fee Account of the Special State Sequester Fund which is hereby created for that purpose. (b) The amount deposited in the Vehicle License Fee Account of the Special State Sequester Fund shall be net of motor vehicle license fee refunds and deductions authorized �y Section 11003. (c) The amount deposited in the Vehicle License Fee Account of the Special State Sequester Fund shall be net of motor vehicle license fee revenue reserves determined necessary by the Pooled Money Investment Board to meet the transfers ordered or-proposed to be ordered pursuant to Section 16310 of the Government Code. (d) The amount deposited in the Vehicle License Fee Account of the Special State Sequester Fund shall include any other money appropriated !?I law for expenditure pursuant to this section and deposited to the credit of the Motor Vehicle License Fee Account in the Transportation Tax Fund. (eZ Except as provided in this section, it is the intent of the Legislature not to allocate any money from the Vehicle License Fee Account of the Special State Sequester Fund until the Joint Legislative Committee on Realignment has reported its recommendations and both houses and the Governor have acted upon the joint committee's recommendations. SEC. 11. jai The Joint Legislative Committee on Realignment is hereby created, authorized, and directed to research, review, and recommend alternative ways to organize the delivery Of state and local public services, allocate public revenues, and provide fiscal incentives to maximize the achievement of statewide public goals. PAGE 13 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT The committee shall consider prior proposals to attain these ends, including, but not limited to, the proposal entitled "Making Government Make Sense," published in February 1933, !2y the Office of the Legislative Analyst. The committee shall review all services provided the state and local agencies, especially those in which program and funding responsibilities are currently shared, to determine which level of government should most appropriately exercise predominant program control. () Upon reviewing these services, the committee shall recommend a rational realignment of program and fiscal responsibilities to achieve improved program performance, up blic accountability, and political responsiveness. The recommendations shall provide for a phase-in period, and shall include specific recommendations for statutory and constitutional changes. e) The committee shall be guided !Rythe following principles: (1Z The state government and local agencies should have different responsibilities, powers, and resources so that they may operate as independently of each other as is practically possible. The fiscal relationship between the state and local agencies should be harmonized through the use of fiscal incentives to promote and coordinate economic development and to encourage preventative strategies in the approach to statewide issues. Local agencies should have sufficient resources under their control to adequately address their assigned responsibilities, and the authority to adjust resource levels in accordance with the preference of local voters. (4) Any state assistance provided to local agencies should be - provided in a manner that reinforces the state's policy objectives, instead of providing general subsidies for local agencies. (5) In order to promote the achievement of program outcomes, government at all levels must be accountable to the public. This accountability can only be achieved by requiring that the entity of government that makes decisions about the level of service be the same entity that funds those levels of service and raises the funds to pay for them. (6Z The use of mandates to achieve state objectives should be limited to the greatest extent possible. ja The state should try to anticipate the unintended. consequences of changing fiscal and programmatic relationships, including, but not limited to, the effects on: (AZ Governmental fiscal capacity. (B) Federal financial participation. Land use decisions made by local governments. . Economic development efforts. The committee shall consist of the following 12 members: Three Members of the Senate appointed �y the President pro Tempore of the Senate Three Members of the Senate appointed the Minority Leader of the Senate. PAGE 14 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT (3) Three Members of the Assembly appointed !Ry the Speaker of the Assembly. Three Members of the Assembly appointed !?y the Minority Leader of the Assembly. jgZ The Senate Rules Committee shall appoint one of the six Members of the Senate to chair the committee. The Speaker of the Assembly shall appoint one of the six Members of the Assembly to be the committee's vice chair. The committee shall implement the following schedule: JlL Beginning August 2, 1993, the committee shall meet at least once a month to take testimony, review alternatives, draft recommendations, and prepare its reports. On or before December 10, 1993, the committee shall issue a preliminary report that recommends methods of allocating revenues in each county's Government Equity Revenue Allocation Fund and the Special State Sequester Fund, funds that are to be created pursuant to Sections 97.10, 6051.01, and 11005 of the Revenue and Taxation Code. (3Z On or before March 1, 1994, the committee shall issue a final report .that recommends a method of allocating revenues in each Government Equity Revenue Allocation Fund and the Special State Sequester Fund. The committee's report may also include other recommendations to realign programs, restructure state-local relations, reorganize government structures, and other related issues. The committee has the followingop wers and duties: All of the rights, duties, andop wers conferred on investigating committees and their members pursuant to the Joint Rules of the Senate and Assembly, which provisions are incorporated herein and made applicable to the committee and its members. To contract, subject to the Joint Rules, with other 2ublic agencies, private firms, colleges and universities, and individuals for services, studies, and reports necessary to carry out the committee's duties. j�Z To do any other thins necessary or convenient to allow the committee to fully exercise itsop wers and perform its duties. ja The Joint Rules Committee may make funds available from the Contingent Funds of the Assembly and Senate for the purposes of this section, and the committee may spend those funds for the expenses of the committee and its members and for any charges, expenses, or claims it incurs pursuant to this section. However, any expenditure of funds shall comply with policies of the Joint Rules Committee and shall be subject to the approval of the Joint Rules Committee- (k) This section shall remain in effect-only until March- 11, 1994, and on that date the Joint Legislative Committee on Realignment shall terminate and this section shall have no force or effect on or after that date SEC. 12. Sections 3, 4, 5, 6, 7, 8, 9, and 10 of this act shall become operative on July 1, 1994, unless a later enacted statute, which is chaptered before July 1, 1994, deletes or extends PAGE 15 Display 1993-1994 Bill Text - INFORMATION BILL NUMBER: SB 1234 BILL TEXT that date.